MANILA, Philippines – Total foreign investment pledges during the 1st quarter of 2018 fell sharply by 37.9% compared to the same period last year, the Philippine Statistics Authority (PSA) said on Thursday, June 7.
The total foreign investment pledges approved by the 7 investment promotion agencies stood at P14.2 billion.
These agencies are the Board of Investments, Philippine Economic Zone Authority, Clark Development Corporation, Subic Bay Metropolitan Authority, Authority of the Freeport Area of Bataan, BOI-Autonomous Region in Muslim Mindanao, and Cagayan Economic Zone Authority (CEZA).
Only CEZA posted year-on-year growth.
The agencies are tasked with approving investments which would then count as foreign direct investment flows once projects materialize.
Japan had the most pledges during the 1st quarter. It committed P7.9 billion in investments, equivalent to 55.3% of the total pledges. The United Kingdom and the Netherlands occupied the 2nd and 3rd posts, pledging P1.5 billion (10.9%) and P878.5 million (6.2%), respectively.
The manufacturing sector topped all other industries, receiving 64.1% of the total foreign investment pledges or P9.1 billion. Administrative and support service activities came in 2nd at P1.81 billion (12.7%), followed by real estate activities at P1.80 billion (12.6%).
Bulk of the approved foreign investments would finance projects in Calabarzon, amounting to P7.4 billion or 52%. Metro Manila (P3.2 billion) and Northern Mindanao (P1.6 billion) came 2nd and 3rd, respectively.
Foreign investment commitments plummeted by 51.8% to P105.6 billion in 2017 from P219 billion in 2016. – Rappler.com