19 April 2010

Government sees accelerating inflow of investments in the next 5 years

The investment promotion agencies foresee an accelerating investments inflow in the next five years from 10 percent growth this year to 20 percent by 2014 driven by the eight industry winners.

Based on the final draft of the Philippine Investment Promotion Plan, which was formulated by 11 government investment promotion agencies (IPAs), the industry growth drivers are agro-industry, BPO-IT, electronics-semiconductor, energy, logistics, mining, shipbuilding and tourism.

The IPAs that would work for the attainment of the growth targets include the Board of Investments, Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Cagayan Economic Zone Authority, Zamboanga Special Economic Zone, Aurora Special Economic Zone, Philippine Retirement Authority, Phividec Industrial Estate, BoI-Autonomous Region of Muslim Mindanao and the Bases Conversion Development Authority.

The PIPP will be launched on Wednesday, April 21, by Trade and Industry Secretary Jesli A. Lapus and Japan International Cooperation Agency representative Norio Matsuda. JICA provided for the funding of the 5-year PIPP.

The PIPP has set out an investments growth target 10 percent in 2010 and 15 percent for 2011 to 2012 and 20 percent by 2013 to 2014.

This medium-term marketing plan of the country’s IPAs is expected to steer the Philippines through the tides of globalization and beef up capital inflows into the economy.

The PIPP will serve as the guiding document for all IPAs to synchronize strategies in investment promotion in order to achieve a world class brand image for the country.

Investments generated by the government’s IPAs in 2009 reached P315.28 billion from P473.25 billion in 2008.

The five-year PIPP has also prescribed for a targeted marketing of investment promotion activities.

In particular, the five-year PIPP has put emphasis on Japan being the country’s number one foreign investor.

The plan has identified Japan as an investor that is going to sustain its investments in the country.

The plan noted of Japan’s propensity for green and greenfield projects.

Based on the PIPP’s Qualitative Goal for Japan, the country’s biggest investor is expected to pour more investments in the motor vehicle sector where it is racing for the production of electric vehicles and also in steel manufacturing. (Bernie Cahiles-Magkilat, Manila Bulletin)