Foreign investment pledges down 16% in Q1
MANILA, Philippines - Foreign direct investments (FDIs) approved by the government's incentive-giving agencies in the first quarter of 2012 fell 16.3% from last year, and are expected to create fewer jobs, the National Statistical Coordination Board (NSCB) reported Tuesday, July 3.
The NSCB said FDIs registered with the 5 investment promotion agencies amounted to only P18.4 billion, lower than the P22 billion in the first quarter of 2011.
The 5 investment promotion agencies of the government are the Board of Investments, Clark Development Corporation, the Philippine Economic Zone Authority, Subic Bay Metropolitan Authority and the Authority of the Freeport Area of Bataan.
By sources, Japan emerged as the top investment source during the quarter, accounting for P4.9 billion or 26.6% of total FDI commitments.
The Netherlands came in second, with P2.3 billion or a 12.6% share, while the US was third with P2.1 billion or a share of 11.5%.
The manufacturing sector remained the top recipient of FDI pledges. It accounted for the lion’s share of 65.3% or P12 billion, followed by administrative and support service businesses (12.8%), real estate (8.8%), accommodation and food service activities (8.7%).
Adding Filipino investments, total approved investments fell 72.9% to P43.9 billion from P162 billion last year.
Pledges from Filipino nationals stood at P25.5 billion, accounting for 58% of the total approved investments in the quarter, the NSCB also said.
Meanwhile, foreign and Filipino ventures approved by the 5 agencies during the period are expected to create 34,585 jobs, down 17.2% from 41,780 jobs last year.
Out of these anticipated jobs, 93.4% or 32,292 jobs would come from projects with foreign interest.
03 July 2012