MANILA, Philippines — The Board of Investments (BOI) has approved over P13 billion worth of projects that meet the increased investment capital threshold for approval by investment promotion agencies (IPAs).
In a statement, the BOI said it approved six projects, with an investment capital between P1 billion and P15 billion, from Feb. 2 to June 11, of this year. These projects represent a total investment of P13.38 billion.
To recall, the Fiscal Incentives Review Board (FIRB) issued a resolution last Feb.2, which increased the investment capital threshold of projects seeking incentives to be approved by IPAs like the BOI to up to P15 billion.
Previously, IPAs could only approve incentives for projects with investment capital under P1 billion, while projects with investments above P1 billion have to go through the FIRB for approval, in line with the provisions of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
At present, projects above P15 billion remain under FIRB’s jurisdiction.
Of the investments approved by the BOI that meet the higher investment capital threshold, agriculture accounted for the biggest share amounting to P6.05 billion.
Investments in agriculture include the registration of a new poultry producer, a dairy farm and milk-processing facility and a cold storage facility project.
“Recent approvals with investments ranging from P1 billion to P15 billion highlight the benefits of increased investment thresholds for the agriculture sector. These projects, upon completion, will drive the adoption of new technologies and strengthen food security. This is crucial to meet the rising food demand, and sustain resilient agricultural systems despite climate change and other challenges,” Trade Secretary and BOI chairman Alfredo Pascual said.
Also getting a big share in approved investments that meet the higher threshold is the transportation and storage industry with P3.95 billion.
The move to increase the investment capital threshold to be approved by IPAs is seen to accelerate project registration for investors and address issues on the lengthy application evaluation process with unclear timelines for final FIRB approval.
“This increased project cost threshold for IPA approval affirms the government’s push to streamline business processes and manage incentives prudently. This sends a clear message to investors: The Philippines is actively fostering an environment conducive to sustainable business growth,” Pascual said.
Since the implementation of the CREATE Act in 2021, the FIRB has approved 28 projects valued at over P1 billion but below P15 billion, with a total investment of P126.61 billion.
In the same period, FIRB also endorsed and approved 15 projects with investment amounts exceeding over P15 billion, totaling P835.89 billion.