Foreign investment approvals up in Q4

By Niña Myka Pauline Arceo, Manila Times

February 17, 2023 

FOREIGN investment (FI) approvals rose by 30.1 percent to P173.61 billion in the fourth quarter from P133.47 million a year earlier, the Philippine Statistics Authority (PSA) reported on Thursday.

"The bulk of FI commitments for the fourth quarter of 2022 was from Singapore (64.2 percent), followed by Japan (21.5 percent) and the United Kingdom (5.9 percent)," the PSA said in a statement.

"Singapore committed P111.47 billion, while Japan and the United Kingdom pledged P 37.41 billion and P 10.22 billion, respectively," it added.

The approvals involved pledges received by six investment promotion agencies: the Authority of the Freeport Area of Bataan, Board of Investments (BoI), BoI-Bangsamoro Autonomous Region in Muslim Mindanao, Clark Development Corp., Philippine Economic Zone Authority and the Subic Bay Metropolitan Authority.

No investment approvals were reported by the Cagayan Economic Zone Authority, Poro Point Management Corp., and the Tourism Infrastructure and Enterprise Zone Authority, the PSA said.

Information and communications accounted for the most pledges at P114.29 billion or 65.8 percent of the total. Real estate activities was second with P35.57 billion or 20.5 percent, followed by manufacturing with P19.30 billion or 11.1 percent.

The biggest chunk of approved fourth-quarter foreign investments, amounting to P101.36 billion or 58.4 percent of the total, was for projects classified as "nationwide" or situated in various regions of the country.

The Ilocos Region took the next biggest share of P32.66 billion (18.8 percent), followed by Region IV-A (Calabarzon or Cavite, Laguna, Batangas, Rizal and Quezon) with P30.71 billion (17.7 percent) and Central Luzon with P5.70 billion (3.3 percent).

Approved investments of foreign and Filipinos combined hit P478.16 billion during the period, 17 percent higher compared to the P408.54 billion seen a year earlier. Filipinos accounted for the bulk at P 304.55 billion or 63.7 percent.

A total of 37,766 jobs could potentially be created, the PSA said. "Out of this total anticipated employment for the period, approved projects with foreign interest were projected to generate 23,364 employment," it added.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the increase could have been due to the reopening of the economy and improved prospects for the country.

"The improvement may also have to do with the various investment commitments after the visits of the administration to different countries in recent months," he added.