Jan-June total investment pledges down 23.2% – NSCB

Local and foreign investment pledges down by 23.2% in the January to June period says NSCB

MANILA, Philippines – The total investment pledges from both local and foreign investors in the Philippines posted a contraction of 23.2% in the January to June period this year.

In a statement, the National Statistical Coordination Board (NSCB) said investment commitments from foreign and Filipino nationals amounted to P246.8 billion during the first 6 months of 2012, lower than last year’s P321.4 billion.  

The NSCB said that of the total amount for the semester, 71.6% of the approved investments came from Filipino investors with P176.8 billion worth of pledges.

Data showed that the total approved foreign direct investments (FDIs) for the first six months of 2012 reached P62.6 billion. This was only a gowth 0.4% from last year’s P62.3 billion.

Sources of investment pledges

The NSCB said the decline was largely due to the contractions observed in the number of investment pledges in most investment promotion agencies (IPAs),

Among the 7 IPAs, the Subic Bay Metropolitan Authority (SBMA) posted the highest decline in investment pledges to 81.4% during the period while the slowest decline of 10.5% in the Philippine Economic Zone Authority (PEZA).

Only the Cagayan Economic Zone Authority (CEZA) posted a growth in investment pledges to P1.6 billion from last year’s P0.02 billion.   

In terms of share, the NSCB said the Board of Investments (BOI) accounted for the largest chunk of investment pledges at 67.1% or P165.5 billion, followed by PEZA which accounted for 29.7% or P73.2 billion.

Jobs, jobs, jobs

As a result of the decline in investment pledges, the NSCB said the projects to be undertaken by both foreign and Filipino nationals will only be able to generate 68,123 jobs.

Data showed that majority or 58.7% or 39,970 jobs will come from investment pledges coursed through PEZA, followed by BOI at 34.6% or 23,581 jobs. The other IPAs would have a combined share of 6.7% or 4,572 jobs.

“SBMA, AFAB (Authority of the Freeport Area of Bataan), and CEZA registered increases in the number of potential jobs expected from foreign and Filipino ventures during the period. On the other hand, PEZA, BOI, and CDC (Clark Development Corporation) exhibited declines in the projected employment,” NSCB said. – Rappler.com

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