Foreign investment commitments skyrocket by 109% in Q3

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Foreign investment commitments skyrocket by 109% in Q3
Manila skyline photo by PortCalls.
  • Foreign investment pledges surged 109.3% to P27.30 billion in the third quarter this year compared to the same period in 2022
  • Singapore led the pack with the highest investment commitment of P13.04 billion, (47.8% of total), followed by Taiwan at P3.63 billion (13.3%), and the United Kingdom at P3.06 billion (11.2%)
  • In terms of investment sectors, manufacturing claimed the most significant share at P16.43 billion (60.2%), followed by administrative and support services at P4.28 billion (15.7%), and real estate at P4.22 billion (15.5%)
  • CALABARZON received the largest share of investment pledges at P14.56 billion (53.3% of total), followed by Central Luzon at P6.13 billion (22.4%), and Central Visayas at P3.87 billion (14.2%)

Foreign investment pledges recorded by investment promotion agencies (IPAs) skyrocketed by 109.3% to P27.30 billion year-on-year in the third quarter of 2023, according to data released by the Philippine Statistics Authority (PSA).

Total foreign investments approved during the third quarter marked a leap from the P13.05 billion recorded in the same quarter of the previous year. These investments were sourced from various IPAs, including the Authority of the Freeport Area of Bataan, Board of Investments (BOI), Clark Development Corporation, Cagayan Economic Zone Authority, Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, and Zamboanga City Special Economic Zone Authority.

BOI-Bangsamoro Autonomous Region in Muslim Mindanao, Clark International Airport Corporation, Poro Point Management Corporation, and Tourism Infrastructure and Enterprise Zone Authority reported no foreign investment approvals for the third quarter, according to PSA. Additionally, the Bases Conversion and Development Authority and John Hay Management Corporation, IPAs newly included in this report, also had no approved foreign investments.

Singapore emerged as the leading contributor, posting the highest investment commitment at P13.04 billion, constituting 47.8% of the total approved foreign investments. Taiwan followed with P3.63 billion (13.3%), and the United Kingdom with P3.06 billion (11.2%).

Breaking down the sectors, the manufacturing industry secured the lion’s share of approved investments, amounting to P16.43 billion, making up 60.2% of the total. Administrative and support service activities claimed the second spot with P4.28 billion (15.7%), closely trailed by real estate activities at P4.22 billion (15.5%).

In terms of regions, CALABARZON emerged as the frontrunner, receiving the largest share of pledged investments, with P14.56 billion, representing 53.3% of the total for the third quarter. Following closely were Central Luzon with P6.13 billion (22.4%) and Central Visayas with P3.87 billion (14.2%).

Despite high investment pledges, the overall approved investments—combining both foreign and Filipino nationals—saw a 47.6% decline to P83.50 billion in the third quarter from P159.38 billion of the previous year. Filipino nationals contributed significantly, accounting for P56.19 billion or 67.3% of the total share.

Approved investments from both foreign and Filipino nationals are expected to create 22,571 jobs, a 20.7% decrease from the 28,458 jobs anticipated in the same quarter last year. Foreign investment projects were set to contribute the most, offering 19,192 jobs and accounting for 85.0% of the total employment generated.

On November 9, National Economic and Development Authority Secretary Arsenio Balisacan said the country’s year-on-year 5.9% GDP growth in the third quarter is the quickest among major emerging Asian economies that have reported their GDP growth for the same period.

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