Philippine investment surges 112 percent

President Gloria Macapagal Arroyo has seen foreign investment surge since she took office in January

By CNN's Amabelle Layug

CNN -- The Philippines Board of Investments (BOI) has reported a 112 percent surge in foreign investment during the first 100 days of the Arroyo administration.

The figure translates to P38.734 billion ($753 million) worth of fresh government-approved investments.

President Gloria Macapagal Arroyo took office in January after the ouster of former leader Joseph Estrada.

Estrada was later arrested and is in jail facing charges of corruption and economic plunder.

Last year, foreign investments approved by the BOI and the Philippine Economic Zone Authority were worth only P18.273 billion ($356 million).

The BoI said it had approved 57 projects with an estimated project cost of P27 billion ($534 million). These projects are expected to generate 7,144 jobs once they are fully onstream.

BOI's total approvals from January 20 to April 10 soared by 184.3 percent from last year's P9.512 billion.

In addition, PEZA approved 52 local projects valued at P11.7 billion. These are expected to generate employment for 10,079 workers. This compares to only P8.76 billion worth of projects during the same period last year.

Renewed business confidence

Trade and Industry Undersecretary Vincent Perez has attributed the growth in investments to renewed business confidence in the Philippines.

He also believes the Arroyo administration will be able to sustain the figures, despite talks of political turmoil in the country.

Perez said the recent wave of violence in Manila has not deterred foreign investors.

Instead, the business community was impressed with how the Arroyo administration tried to quell the violence and restore stability in the country.

Perez was referring to Arroyo's move to declare a state of rebellion to stop the riots and arrest the people behind the plot to topple her government.

Violent protest actions broke out in Manila on May 1 after supporters of jailed leader Joseph Estrada stormed the presidential palace of Malacanang to demand Arroyo's removal from office.

Perez said the number of overseas investments in the country had been low. Businesses had been avoiding the Philippines due to lack of confidence in the Estrada administration.

Philippine President Arroyo on the uprising in Manila
May 1, 2001
Business group lends weight to Arroyo
May 3, 2001

Philippine Economic Zone Authority: About us
Philippine Board of Investments

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