Approved foreign investments decreased in the third quarter

The Philippine Statistics Authority reported on Tuesday that foreign investment approvals fell sharply in the third quarter, but the overall tally was still rising due to domestic pledges.

At P13.05 billion, foreign investment commitments approved by the Board of Investment (BoI), Clark Development Corporation, the Philippine Economic Zone Authority (PEZA) and the Subic Bay Metropolitan Authority (SBMA) were 22.4 percent lower compared to P16.82 billion. a year ago.

No foreign investment approvals were reported by the Bataan Freeport Zone Authority, BoI-Bangsamoro Autonomous Region in Muslim Mindanao, Cagayan Economic Zone Authority, Poro Point Management Corp., and Tourism Infrastructure Economic Zone Authority for the same period this year and in 2021., PSA noted.

The bulk of approved foreign investment commitments came from Japan (34.5 percent), South Korea (15.5 percent) and Singapore (12.6 percent).

“Japan pledged 4.50 billion pesos while South Korea and Singapore made pledges of 2.02 billion and 1.64 billion pesos, respectively,” the PSA said.

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By sector, manufacturing garnered the highest foreign investment pledges at 7.2 billion pesos (55.2 percent of the total). Administrative activities, support services and real estate activities came third with 3.38 billion pesos, or 25.9 percent, and 1.35 billion pesos, or 10.3 percent, respectively.

By region, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) will receive P6.60 billion, or 50.6 percent, of foreign investment approvals in the quarter. Central Luzon came second with 3.02 billion pesos (23.1 percent), and the National Capital Region came in third with 2.24 billion pesos (17.1 percent).

Increase approvals in general

However, total investment approvals increased by 58.4 per cent to PHP 159.18 billion per quarter from PHP 100.48 billion last year.

The investment bank accounted for the largest portion of investment approvals at 132.31 billion pesos, or 83.1 percent, followed by PEZA (17.14 billion pesos, or 10.8 percent) and SBMA (7.43 billion pesos, or 4.7 percent).

The electricity, gas, steam and air conditioning supply sector accounted for nearly 80 percent of the total investment approvals, or 125.98 billion pesos. Real estate activities took a much second place at 13.09 billion pesos (8.2 percent) with manufacturing rounding out the top three at 10.78 billion pesos (6.8 percent).

Most of the investment was directed to Luzon (56.1 percent of the total), with Bicol and Central Luzon regions in particular accounting for 56.3 billion pesos and 16.5 billion pesos, respectively. Visayas got 35.9 percent, with 53.28 billion pounds going to Eastern Visayas alone.

The total number of approved projects for foreign and Filipino investors in the third quarter of 2022 is expected to generate 28,139 [jobs in terms of] PSA said.

Of the expected total employment for the period, approved projects of foreign interest were expected to generate 17,994 [jobs]… based on reports of investment promotion agencies.”

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