Foreign investment pledges dropped 42.7% to P132 billion fell sharply in the fourth quarter of last year from P230.2 billion in the same period in 2012, the Philippine Statistical Authority (PSA) reported.
Projects in the transportation and storage industry drew the largest amount of pledges at P53.1 billion, followed by manufacturing at P51.7 billion and administrative and support service industries at P14.5 billion.
The PSA said the country’s seven investment promotion agencies (IPAs) reported fewer foreign direct investment (FDI) commitments in the final three months of 2013 compared with the same period in 2012.
The total FDI commitments fell as registration of interested investors with the following IPAs declined:
- Philippine Economic Zone Authority (PEZA), down 57% to P74.08 billion;
- Clark Development Corp (CDC), a 56% plunge to P1.03 billion;
- Subic Bay Metropolitan Authority (SBMA), a 47.1% contraction to P114.6 million; and
- Board of Investments (BOI), a 4% decrease to P53.96 billion.
The drop in registered investment pledges with PEZA, CDC, SBMA and BOI was more than offset by increases at the Cagayan Economic Zone Authority (CEZA), which registered a 2,072% increase to P438.8 million, and the Authority of the Freeport Area of Bataan, which surged 795.2% to P2.01 billion.
The British Virgin Islands was the top source of foreign pledges at P46.1 billion, followed by Japan at P29.4 billion and the Netherlands at P14.4 billion.
Foreign investment projects approved by the IPAs in the fourth quarter of last year are seen to generate 38,567 jobs, or 23.1% more than the 31,342 jobs expected in the same period a year ago.
For the whole of 2013, approved foreign investment applications reached P274 billion, down by 5.4% from P289.5 billion in 2012.
Of the total approved commitments, PEZA cornered P147.67 billion; BOI, P120.65 billion; Authority of the Freeport Area of Bataan, P2.12 billion; CEZA, P599.8 million; SBMA, P668 million; and BOI-Autonomous Region in Muslim Mindanao, P322 million.
Investment pledges from the British Virgin Islands reached P92.8 billion, followed by US at P55.3 billion and Japan at P44.8 billion.
The manufacturing industry cornered P77.6 billion in pledges last year, a 54.3% drop from the P169.5 billion in 2012.
Electricity, gas, steam, and air conditioning supply cornered P74.5 billion, followed by transportation and storage at P55.5 billion.
A total of 132,700 jobs are expected to be generated from these projects, up by 18.5% from the previous year’s 111,953.
Investment commitments from both foreign and Filipino nationals amounted to P754 billion, up 8% from P698.3 billion in 2012. The bulk or 63.7% of registered investments during the period came from Filipino nationals at P480 billion.
Approved investments of foreign and Filipino nationals in the fourth quarter alone totaled P235.7 billion, 28.6% lower than the P330.1 billion the previous year.
Pledges from Filipino nationals stood at P103.7 billion, accounting for 44% of the total approved during the quarter.
Photo from www.mysubicbay.com.ph