17 December 2014

Philippines' total approved foreign investments down by 44.4 percent in Q3 2014

MANILA - Total foreign investments (FI) approved in the third quarter of 2014 by the seven investment promotion agencies (IPAs), namely: Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA) as well as the Authority of the Freeport Area of Bataan (AFAB), BOI-Autonomous Region of Muslim Mindanao (BOI-ARMM), and Cagayan Economic Zone Authority (CEZA) amounted to P18.3 billion, 44.4 percent lower than the P32.9 billion recorded in the same period last year.

Meanwhile, total approved FI for the first nine months of 2014 reached P91.8 billion, declining by 35.4 percent from the amount recorded last year at P142.1 billion.

The top three prospective investing countries during the quarter include the Netherlands, Japan, and the United States of America (USA). Netherlands topped the list, pledging P4.4 billion or 24.3 percent share, followed by Japan and USA, committing P3.7 billion and P2.8 billion, or 20.1 percent and 15.3 percent of the total approved FI, respectively.

Manufacturing industry contributed the largest amount of committed foreign investments in the third quarter of 2014, with investment pledges recorded at P8.8 billion or 48.0 percent of the total FI. Administrative and support service activities came in second, contributing 20.8 percent or P3.8 billion worth of investment commitments, followed by real estate activities, which accounted for 13.3 percent or P2.4 billion.

Approved investments of foreign and Filipino nationals reached P159.6 billion during the period, declining by 15.7 percent from last year’s P189.3 billion. Filipino nationals continued to dominate the investments approved during the quarter, sharing 88.5 percent or P141.3 billion worth of pledges.

Bulk of the investments are intended to finance activities in manufacturing, contributing P67.6 billion and with a share of 42.4 percent, followed by real estate activities at P31.4 billion or 19.7 percent share, and construction at P24.8 billion or 15.5 percent share.

Total projects of foreign and Filipino investors approved by the seven IPAs in the third quarter of 2014 are expected to generate 54,606 jobs, an increase of 38.9 percent from last year’s projected employment of 39,314 jobs in the same period. Out of these anticipated jobs, 74.3 percent would come from projects with foreign interest. (PIA)