MANILA - The Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) approved a total investment of P40.65 billion in the first quarter of 2007, 102% higher compared to the P20.12 billion approved in the same period in 2006.

These investments cover 177 projects that are expected to generate direct employment of 32,118 persons as against 169 projects and 28,676 direct employment in the 1st quarter of 2006.

The top investment sectors continue to be manufacturing (P15.73 billion), power generation (P10.85 billion), mass housing (P6.52 billion) and IT services (P5.29 billion). The manufacturing sector grew by 68% from P9.37 billion, while mass housing grew by 22% from P5.35 billion and the IT services grew by 106% from the P2.57 billion for the same period.

Among the major investments in this quarter include the 112 MW Pantabangan-Masiway hydropower project of First Gen Hydro Power Corporation worth P7.7 billion, the P940 million hydroelectric power project of Hedcor Tamugan, Inc.

And the P546 million project of Mabuhay Vinyl Corporation involving the manufacture of caustic soda and hydrochloric acid and the P453.3 million automotive wiring harness project of Pilipinas Kyohritsu.

A major number of projects in the manufacturing and IT services sectors are to be located in the export zones and IT Parks and Buildings of PEZA.

Foreign investors account for 43% of total investments (P17.58 billion) while Filipinos committed P23.07 billion, or 57% of the total approved investments. The top three foreign investors include Japanese (P6.82 billion), Dutch (P3.67 billion) and Americans (P3.55 billion).

DTI Undersecretary and BOI Managing Head Elmer C. Hernandez noted that significant growth rates are manifested in the manufacturing and IT services sectors, an indication that the country remains competitive in these areas and what made it more significant is the fact that these sectors are the main employment and export generators.

Another noticeable feature of the 1st quarter performance is the renewed interest to invest in the power sector and this will ensure that the growing power requirements of the country in the immediate future are addressed, Hernandez further added. He also highlighted the fact that the investments in the power sector are in the renewable and environmentally clean sector.

Given the 1st quarter performance, DTI Secretary Peter B. Favila, who is also the BOI Chairman said, “Investment confidence remains strong, an indication of the positive economic reforms the government has undertaken. Investors remain bullish of the Philippines. We note that businessmen earlier indicated that the coming May local elections do not worry them as the reforms are already in place. The recent visits of Saudi, Chinese and Russian business officials are a clear indication of the bright prospects for doing business in the country.”

Investors are also seeing improvements being done in the business environment such as cutting red tape and fighting corruption in the workplace. Secretary Favila said, “We are putting in place additional measures to make business transactions with government easier and more transparent.”

Recently, the government has done away with fees related to exports at the same time, together with the private sector, put up an export fund for use by exporters. Another latest measure adopted by the government is the visa on arrival for foreign businessmen and investors for visa-required countries.

“We mean business when we said we will improve government transactions. All this is meant to bring in more business for the country and provide more jobs to Filipinos,” Favila said.