Metro Manila (CNN Philippines, December 8) – Foreign investment pledges fell 45.8% in the third quarter of 2021, according to the latest figures from the Philippines Statistics Authority (PSA).
The PSA declared 16.82 billion yen of approved foreign investment (FI) from July to September, compared to 31.03 billion yen in the same period last year.
Investment pledges in the third quarter came from the Board of Investments (BOI), the Clark Development Corporation (CDC), the Philippine Economic Zone Authority (PEZA) and the Subic Bay Metropolitan Authority (SBMA), according to the agency.
This means that no approval has come from the Bataan Free Port Zone Authority (AFAB), the BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM) and the Zone Authority. economy of Cagayan (CEZA).
Japan became the main source of approved investment for the period with 11.16 billion yen in commitments, or 66.4% of the total.
The Netherlands followed with 1.56 billion yen or 9.2% of overall FI approvals, while the British Virgin Islands followed with 698.32 million yen or 4.2% of investment pledges. during the quarter.
The manufacturing sector is expected to gain most investment commitments at 11.01 billion yen, or 65.5% of the total.
Some 2.70 billion euros in pledges are intended for real estate activities, or 16% of all approved FIs. Administrative and support services activities will receive 14.2% of total commitments, or 2.38 billion euros.
In terms of regions, Calabarzon won the majority of third-quarter approvals at 8.45 billion euros. This represents 50.2% of all pledges for the period.
The Ilocos region and central Luzon are the next biggest winners, according to the PSA.
Region I is expected to receive 3.4 billion yen in investment pledges, or 20.2% of the total, while 2.12 billion yen or 12.6% of approved FIs are expected to finance projects in Region III.
“In the third quarter of 2021, approved projects of foreign interest were expected to generate 10,268 jobs based on reports from IPAs (investment promotion agencies),” PSA said.
The recent figures come after 22.50 billion yen in FIs that were given the green light three months earlier, which amounted to 45.5% year-on-year growth.
The government has pursued aggressive policies to attract foreign investment to the country, especially with the employment opportunities that these capital inflows create.
Among them is the Law on Business Recovery and Tax Incentives for Businesses (CREATE), which was enacted in March.
President Rodrigo Duterte also urged Congress to speed up the passage of bills amending the Foreign Investment Law, the Civil Service Law and the Retail Trade Liberalization Law.