German investors have pledged 92% of the country’s investment commitments accumulated from President Ferdinand R. Marcos Jr.’s overseas trips, amounting to P393.28 billion ($7.7 billion), according to the project summary report of the Board of Investments (BOI). The BOI also reported that the latest foreign direct investment (FDI) count from Marcos’ foreign trips is P427 billion ($8.4 billion). Including locally-sourced investments, total BOI approvals reached P740.1 billion ($14.5 billion) from January to September this year.
During a press briefing at Malacañang Palace, Department of Trade and Industry (DTI) Undersecretary and BOI Managing Head Ceferino Rodolfo revealed that historically, around 80% of the country’s local investments dominated its total approved investment amount, while only 20% came from foreign investments. However, this year, local investments accounted for only 40% of the total approved investments, while foreign investments made up 60%.
Rodolfo stressed that the increase in foreign investments does not mean that local investors are not valued, but rather indicates an overall increase in investment. He also highlighted that not only did the BOI’s investment approvals increase, but the foreign component of the approvals as well.
The P427 billion figure encompasses foreign approvals from the Philippine Economic Zone Authority (PEZA) and other Investment Promotion Agencies (IPAs). Rodolfo noted that many countries, particularly in the renewable energy sector, are currently in the pipeline for investments.
Rodolfo stated that the government is now attracting countries that were previously not investing in the Philippines, particularly EU countries, due to “some other reasons.” He attributed the increase in investments to the direct impacts of presidential visits.
The BOI data showed that about 80% of the registered projects from the total investment approval over the past 10 years were fully realized. Rodolfo also highlighted the significant impact of President Marcos Jr.’s invitation to European Commission President Ursula von der Leyen, which resulted in fruitful talks between the two nations and the resumption of free-trade agreement negotiations.
Furthermore, Rodolfo mentioned the lifting of foreign equity restrictions on renewable energy projects initiated by DTI Secretary Alfredo E. Pascual and Department of Energy (DOE) Secretary Raphael Perpetuo “Popo” Lotilla under the Marcos administration. This move allowed for greater foreign investment in the renewable energy sector.
Rodolfo emphasized that the visit to Brussels for the ASEAN-EU Commemorative Summit 2022 played a vital role in attracting foreign investments, particularly from the renewable energy sector and Europe. He also highlighted the sectors that are attracting foreign investments, including renewable energy, telecommunications, mineral processing, and high-tech manufacturing.
Although there are no current investments in the mineral processing sector, the BOI is actively engaged with private sector companies and their prospective foreign partners, particularly for nickel processing. Chinese, South Korean, and Japanese companies are primarily involved in the country’s nickel processing industry.
