Metro Manila (CNN Philippines, December 8) — Foreign investment pledges fell by 45.8% during the third quarter of 2021, according to the latest figures from the Philippine Statistics Authority (PSA).
The PSA brought in £16.82bn in approved foreign investment (FI) from July to September, down from £31.03bn in the same period last year.
Investment pledges during the third quarter came from the Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA) and Subic Bay Metropolitan Authority (SBMA). ), according to the agency.
This means that no approval has come from the Bataan Free Zone Authority (AFAB), the BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM) and the Economic Zone Authority of Cagayan (CEZA).
Japan became the main source of approved investments for the period with £11.16 billion in pledges, or 66.4% of the total.
The Netherlands followed with ₱1.56 billion or 9.2% of overall IF approvals, while the British Virgin Islands followed with ₱698.32 million or 4.2% of investment pledges during the trimester.
The manufacturing sector is expected to gain the most investment commitments at £11.01bn, or 65.5% of the total.
Some ₱2.70 billion of pledges are for real estate business, or 16% of all approved FIs. Administrative and support services activities, on the other hand, will get 14.2% of total commitments or ₱2.38 billion.
In terms of regions, Calabarzon won the majority of approvals in the third quarter at £8.45bn. This represents 50.2% of overall 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 £3.4bn in investment pledges, or 20.2% of the total, while £2.12bn or 12.6% of approved FIs are expected to fund projects in the region III.
“In the third quarter of 2021, projects approved with foreign interest were expected to generate 10,268 jobs based on IPA (investment promotion agencies) reports,” the PSA said.
The recent figures come on the heels of IF’s £22.50bn greenlight three months prior, which equates 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 created by these capital inflows.
Among them is the Business Recovery and Tax Incentives Act (CREATE), which was signed into law in March.
President Rodrigo Duterte had also urged Congress to expedite the passage of bills amending the Foreign Investment Law, the Civil Service Law and the Retail Trade Liberalization Law.