Investments by foreign entities approved by the Philippines’ seven investment promotion agencies (IPAs) increased 165% in the third quarter of 2015 from the same period last year, according to the Philippine Statistics Authority (PSA).
In a report, PSA said foreign investments reached P48.569 billion, up from P18.331 billion year-on-year. These seven IPAs are the Authority of the Freeport Area of Bataan, Board of Investments (BOI), BOI-Autonomous Region of Muslim Mindanao, Cagayan Economic Zone Authority, Clark Development Corporation, Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority.
In the first nine months of the year, aggregate foreign investments posted a 16.2% growth to P106.6 billion from P91.8 billion in the same period last year.
BOI recorded the highest approved investments for the third quarter with P28.51 billion, a surge of 1,374.6% from last year’s P1.93 billion. PEZA followed with P13.89 billion, down 8.7% from last year’s P15.21 billion.
The top three prospective investing countries for the quarter were the Netherlands, Japan and South Korea. The Netherlands pledged P27.7 billion for a 56.9% share of the total, while Japan and South Korea committed investments worth P4.1 billion and P3.6 billion, or 8.4% and 7.5% of the total approved investments, respectively.
By sector, electricity, gas, steam, and air-conditioning supply received the largest amount for approved foreign investments in the third quarter of this year, with P27.8 billion or a 57% share. Manufacturing came in second with investment pledges valued at P7.9 billion for a 16.2% share, followed by administrative and support service activities worth P3.6 billion or a 7.4% share.
In terms of location, the bulk of approved foreign investments, amounting to P32.2 billion or 66.3% of the total, are intended to finance projects in Region IVA–CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon). The next biggest investment, valued at P7.6 billion or 15.7% of the whole, will go to Region III–Central Luzon. The National Capital Region cornered the third biggest investment, estimated at P4.9 billion for a 10.1% share.
Approved investments for both foreign and Filipino investors reached P168.2 billion in the third quarter, up 5.4% from last year’s P159.6 billion. Filipino nationals continued to dominate investments approved during the quarter, contributing P119.6 billion worth of pledges, or 71.1% of the whole.
The projects of foreign and Filipino investors approved in the third quarter by the seven IPAs are expected to generate 48,776 jobs, lower by 10.7% from last year’s forecast employment of 54,606 in the same period. Of the total anticipated jobs for this period, 78.1% will come from projects with foreign interest. Among the industries, manufacturing is expected to generate the most number of jobs, calculated at 15,330.
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