ASEAN investment in the Philippines rises

PHL attracting more investments from ASEAN neighbors — BoI

Justine Irish D. Tabile, Reporter
BusinessWorld
03 September 2025

INVESTMENT PLEDGES from Association of Southeast Asian Nations (ASEAN) countries have reached P251.98 billion since 2020, reflecting the region’s increasing confidence in the Philippines, the Board of Investments (BoI) said.

“As we build stronger trade and investment ties with our ASEAN neighbors, these numbers reflect the growing confidence of foreign investors in the Philippines as a place for business growth,” Trade Secretary and BoI Chairperson Ma. Cristina A. Roque said in a statement on Tuesday.

“We will keep working to create a stable and welcoming business environment, one that brings in more investments and opens up real opportunities for Filipinos,” she added.

According to the BoI, Singapore has been the biggest source of investment pledges since 2020, accounting for P245.97 billion of the total. The other top sources were Thailand with P4.34 billion, Malaysia with P1.65 billion, and Indonesia with P12.27 million.

In terms of industries, around P170 billion of these investments went to the information and communication sector, while P74.2 billion went to the power sector.

“The BoI-approved projects from ASEAN investors, particularly those in the information and communication and the renewable energy sectors, align with the Philippines’ push for smart and sustainable manufacturing and services,” said BoI Executive Director Evariste M. Cagatan.

The other top sectors were manufacturing (P5.58 billion), administrative and support services (P1.41 billion), and agriculture, forestry, and fishing (P930 million).

“Collectively, these projects are projected to generate 15,358 new jobs for Filipinos from 2020 up to July 2025,” the BoI said.

Meanwhile, from January to July this year, total approved investment pledges from the ASEAN region reached P58.07 billion, according to the agency.

Citing a report from the Bangko Sentral ng Pilipinas, the BoI said there is also a sustained growth in foreign direct investment (FDI) inflows from Southeast Asian countries.

In the first seven months, net FDI from ASEAN reached $95.78 million, with investments from Singapore accounting for $63.61 million and Malaysia accounting for $31.56 million.

Moving forward, the BoI said the country’s participation in the ASEAN Investment Forum in Kuala Lumpur next month will help to further boost investments from the region.

The event is expected to showcase investment-ready projects under the ASEAN Regional Investment Promotion Action Plan 2025-2030 spanning biofuels, carbon capture and storage, medical devices, solar photovoltaic equipment, and regional supply linkages.

High production costs and labor shortages in their own countries are causing ASEAN economies to invest in the Philippines, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

He said the Philippines’ large and young population of over 114 million and leadership in the business process outsourcing sector also make it a viable market for ASEAN investors.

“The Philippines can also be an alternative, lower-cost destination for heavy industries such as shipbuilding, due to being cheaper and having a greater labor supply, such as engineers at a lower cost,” he said.

“It is also the 10th largest market in terms of sales for some of the world’s largest consumer goods companies, making it viable for production facilities, especially for perishable products.”

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the increasing investments from ASEAN countries reflect deepening regional integration and confidence in the Philippines as part of intra-ASEAN supply chains.

“The relocation of production capacities, regional hedging against global uncertainties, and proximity advantages are likely drivers,” he said in a Viber message.

The US is imposing sweeping tariffs on goods coming from its major trading partners, including the Philippines and other ASEAN member states.

Mr. Rivera said ongoing infrastructure development in the Philippines under the “Build Better More” program has also enhanced the country’s attractiveness to regional investors.

“Additionally, the Regional Comprehensive Economic Partnership and ASEAN-Australia-New Zealand Free Trade Area frameworks make it easier for ASEAN firms to view the Philippines as a strategic node for manufacturing, logistics, and services expansion,” he said.

“However, these may be negated by hounding corruption issues.”

PH positioned as hub for sustainable manufacturing, services

PH positioned as hub for sustainable manufacturing, services

Story by Connie Fernandez-Brojan
Inquirer.net
31 August 2024

CEBU CITY — The Department of Trade and Industry (DTI) seeks to transform the country into Southeast Asia’s hub for smart and sustainable manufacturing and services.

This was disclosed by Trade and Industry Undersecretary Ceferino Rodolfo during the Cebu leg of the business forum organized by Security Bank Corp. and SyCip Gorres Velayo (SGV) & Co. at Nustar Resort in Cebu City last Aug. 16.

Aside from Rodolfo, the two other panelists were Maria Elena Arbon, DTI director for Central Visayas, who talked about the potential of small- and medium-sized enterprises; and lawyer Jules Riego, who stressed the need for effective wealth management and succession planning to protect families’ legacies.

Rodolfo, also managing head of the Board of Investments (BOI), said sectors such as renewable energy and semiconductors need to be further developed for the country to become Southeast Asia’s hub for smart and sustainable manufacturing and services.

Others include smart/high-tech light manufacturing, outsourced semiconductor assembly and test, high-tech agriculture, and data centers/telecommunications infrastructure.

Free trade deals

So far, Rodolfo said the Marcos administration had undertaken reforms toward this goal, including entering into free trade agreements (FTA) with various countries, such as the Regional Comprehensive Economic Partnership with Asia-Pacific nations for possible technology transfer and influx of investments.

The government was also negotiating an FTA with the European Union and a reauthorization of the Generalized System of Preferences with the United States, he added.

The administration had also eliminated tariffs on electric vehicles and removed equity restrictions on foreign entities regarding renewable energy projects to entice more direct investments.

Collaboration

In Cebu, Rodolfo noted that the BOI approved P3.912 billion worth of projects from the private sector.

These are in various sectors such as cold storage, renewable energy, information technology and business process management, and manufacturing.

Still, Rodolfo stressed a need for greater collaboration between the government and private sector to strengthen economic growth in the Philippines. “This is crucial given the country only has a short window in achieving its goal to be Southeast Asia’s hub for smart and sustainable manufacturing and services,” he added. Security Bank regularly hosts events and forums as an extension of its BetterBanking brand promise.

“We hold these forums as part of our commitment to provide our clients with valuable insights for everyday business and investment decisions. This forum embodies our BetterBanking mission to enrich lives, empower businesses, and build communities sustainably. It also leverages our partnership with organizations and industry leaders, such as the DTI and SGV, to facilitate discussions on actionable strategies in today’s rapidly evolving economic landscape,” said Sanjiv Vohra, president and CEO of Security Bank.

Billions worth of projects approved

Over P600 billion projects approved in 4 months – BOI

Story by Louella Desiderio
Phulstar Global
22 April 2024

MANILA, Philippines — Investments approved by the Board of Investments (BOI) have reached more than P600 billion in the first four months of the year.

In a press briefing, BOI director Sandra Marie Recolizado said P607.22 billion worth of investments have been approved by the investment promotion agency for the January to April 17 period this year.

Compared with the P527.24 billion worth of investment approvals in the January to April period last year, she said the total investments approved so far for this year increased by 15 percent.

She said this year’s approved investments are for 117 projects and are mostly from domestic investors.

In particular, P494.37 billion of the total approved investments for this year are from domestic sources.

Trade Secretary and BOI chairman Alfredo Pascual said it is important to have local firms invest within the country as they also play a role in encouraging foreign firms to consider the Philippines for their business expansion.

“What we really want to encourage in the Philippines is for domestic investors to commit their capital to projects in the Philippines rather than bringing out the money, their capital outside the Philippines,” he said.

He said foreign investors are looking at whether local firms are investing within the country.

In terms of sectors, Recolizado said the majority of the approved projects this year are in renewable energy.

“The biggest project that we have approved is the Ahunan power project,” she said, noting the project was cleared by the BOI just last week.

Located in Laguna, Ahunan Power Inc.’s  hydropower resource and pumped storage hydroelectric power project has a project cost of P296.98 billion.

Ahunan Power is a wholly owned subsidiary of tycoon Enrique Razon Jr.’s Prime Infrastructure Capital Inc.

Recolizado said the second largest project approved by the BOI is the P83.70 billion wind energy project of Ivisan Windkraft Corp., which is 75 percent Singaporean-owned.

Ivisan Windkraft’s wind energy project will be located offshore of Cavite.