BOI-passed projects reached new record at P1.62T in 2024
The Department of Trade and Industry’s (DTI) lead investment promotions agency approved for registration planned projects worth a total of P1.62 trillion in 2024, increasing by nearly a third and reaching a new record amount as business ventures from local investors dominated the lineup.
Investments registered with the BOI are given incentives such as income tax holidays, a preferential tax rate on gross income, zero value-added taxes (VAT) rating, as well as tax- and duty-free importation of capital equipment, raw materials and supplies.
Data released by the Board of Investments (BOI) on Thursday showed that the full-year amount surged by 28.6 percent from the previous record high of P1.26 trillion that was achieved last year.
“We are pleased to report significant progress in attracting investments this year. These investments will fuel job creation, drive innovation, and foster dynamic economic progress,” trade secretary Cristina Roque, who also sits as BOI chair, said in a statement.
Roque emphasized that the significant increase also meant that the BOI surpassed its target of registering a total of P1.5 trillion in investments for this year.
BOI approvals have fluctuated over the past four years with P729 billion in 2022, P655 billion in 2021, P1.02 trillion in 2020, and P1.14 trillion in 2019.
This year, P1.23 trillion, — or almost 75 percent of total planned investments — were local projects. Foreign proponents account for the remaining P383.31 billion worth of projects.
The top foreign source is Switzerland, with firms from that country investing P289.06 billion, which is equivalent to 75.41 percent of the overall foreign investments approved by the BOI.
The Netherlands followed with P44.50 billion, Japan with P14.67 billion and South Korea with12.73 billion.
Also, BOI data showed that most of the investments approved this year are in the energy sector, which accounted for P1.38 trillion or 83.64 percent of the total.
Meanwhile, P121.20 billion of the investments are in the air and water transport sector, P37.26 billion in real estate, P31.67 billion in manufacturing, and P16.28 billion in water supply, sewerage, waste management and remediation.
