The Department of Trade and Industry yesterday said that foreigners doubled their committed investments last year from P92 billion in 2006 to P190 billion.

New money is coming in power, water supply and manufacturing, indicating the return of confidence in the Philippine economy, according to DTI undersecretary Elmer C. Hernandez.

"Foreign investors back because of the improved economy," Hernandez said.

Hernandez said tally by the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA)showed that foreign investors have accounted for 54 percent of the P349.08-billion total investments registered with the agencies in 2007.

Comparatively, local investors accounted for the remaining 46 percent at P159.36 billion.

Hernandez said the past two years; local investors dominated investment commitments. In 2006, the locals accounted for 67 percent of the P274-billion total investments for the year at P182 billion with foreign commitments at 33 percent or PP92 billion.

In 2005, again the locals dominated the investments at 59 percent of the total P231 billion investments registered at PEZA and BOI amounting to P137.07 billion. Foreign investments accounted for 41 percent at P93.97 billion.

The report said the top five foreign investors for 2007 were the Singaporeans which poured in P44.12 billion, seven times more than the P6.31 billion invested in 2006; the Japanese, P38.37 billion from P19 billion the previous year; Americans, P36.05 billion, slightly lower from P37.84 billion a year before; Dutch, P14.51 billion, double from P7.19 billion in 2006 and; Norwegian, P11.17 billion from zero in 2006.

Singaporeans were investing in the Japanese in electronics and motor vehicles; the Americans in electronics, ICT-enabled services, water and power; the Dutch in power and electronics and Norwegians, in power.

Meanwhile, official statistics released yesterday by the DTI how’s that total investment in 2007 surged 28.67 percent to P349.08 billion from P271.29 billion approved in 2006, exceeding by P45 billion the expectations of the department.

Given the 2007 performance, DTI secretary Peter B. Favila, who is also BOI Chairman, said the agency exceeded the 12-percent growth target of P304 billion.

" This surge in investments is a manifest reflection of the investors’ confidence as brought about by the much-improved economic condition of the country and the enhanced business environment," Favila said.

He noted that while the official numbers from the National Economic and Development Authority are yet to be announced, he expects 2007 gross domestic product results "to be very impressive, "as shown by the 7.5 percent growth in the second quarter of 2007, the fastest in two decades.

The total number of approved projects in 2007 was 766 projects, which are expected to generate direct employment of 144,714 persons as against 698 projects and 130,376 direct employments in 2006.

Hernandez said top sectors for the year are, almost at equal share to total investments power and water supply, P94.3 billion and manufacturing, P90.25 billion, respectively. Power and water supply increased 2,616 percent from P3.47 billion in 2006 while manufacturing grew by 16.58 percent from P77.41 billion the previous year.

Other top sectors are: real estate involving mass housing, P64.69 billion; infrastructure and industrial service facilities, P55.61 billion and; information technology services, P17.81 billion.

Hernandez said mass housing grew by 109.80 percent from P30.83 billion in 2006 but infrastructure and industrial services declined by 42 percent from P95.87 billion. IT services grew by 45.16 percent from P12.27 billion in 2006.

"There is a 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 said.

He also highlighted the fact that the investments in power are in the renewable and environmentally clean sector.

In housing, the continued interest of investors will address the government’s drive in the provision of affordable housing to the country’s growing population. Hernandez likewise observed that the IT services and manufacturing sectors remain competitive and what made it more significant is the fact that these sectors are the main employment and export generators.

The top 10 investments in 2007 include: Masinloc power plant of Masinloc Power Partners Co. Ltd. (P41.81 billion) Magat hydroelectric power project of SN Aboitiz Power, Inc., P27.93 billion; advance semiconductor components project of Texas Instruments P20 billion; power generating plant of Redondo Peninsula Energy, Inc., P19.32 billion; computer components project of a Japanese company P13.51 billion); hotel project of KHI Manila Property, Inc., P9.13 billion); rehabilitation, construction, expansion, operation and maintenance of the South Luzon Expressway project of South Luzon Tollway Corp., P8.34 billion; Pantabangan-Masiway hydropower project of First Gen Hydro Power Corp., PHP 7.72 billion; power generation project of DMCI Power Corp., P7.36 billion; and gold and silver ore processing project of Philippine Gold Processing & Refining Corp. P6.76 billion.