Foreign investments

Foreign investment pledges up 71.5%

DESPITE the Covid-19 pandemic, the country’s foreign investment pledges jumped 71.5% year-on-year to reach 192.34 billion pesos in 2021, according to data from the Philippine Statistics Authority (PSA). .

Based on the latest PSA report, approved foreign investments increased from 112.12 billion pesos recorded in 2020.

The country’s foreign investment pledges fell by 71.26% in 2020 from P390.11 billion in 2019 as the global economy nearly came to a standstill due to the Covid-19 pandemic.

Approved foreign investment refers to the amount of proposed contribution or the share of foreigners in various projects in the country.

The Board of Investments (BOI) accounted for the bulk of approved foreign investment at 151.8 billion pesos or 78.9% of the total, while 35.83 billion pesos or 18.6% came from the Authority of Philippine Economic Zone (PEZA).

Meanwhile, total foreign investment approved in the last quarter of 2021 tripled to 133.47 billion pesos from just 36.49 billion pesos recorded in the same period of 2020.

Approved foreign investment increased alongside the nearly sevenfold increase in approved foreign investment cornered by the BOI to 129.17 billion pesos from just 18.48 billion pesos in the fourth quarter of 2020.

Over the same period, foreign investment from the BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM) increased six-fold to 20 million pesos from just 3 million pesos.

Those of Clark Development Corp. (CDC) also increased by 10.7% to reach 324.2 million pesos against 292.7 million pesos.

Despite these increases, PEZA and the Subic Bay Metropolitan Authority (SBMA) saw their foreign investment pledges in the fourth quarter of 2021 plunge by 76.8% and 96.4%, respectively.

Foreign investment pledges from PEZA plunged to 3.94 billion pesos from 17.03 billion pesos while those from SBMA fell to 8.5 million pesos from 234.2 million pesos.

The majority of foreign investment commitments for the fourth quarter came from Singapore, which accounted for P79.3 billion or 59.3% of the total.

Next come the Netherlands and Japan, with investment pledges amounting to P24.54 billion (18.4%) and P1.44 billion (1.1%), respectively.

Projects approved with foreign interests in the fourth quarter of 2021 are expected to generate 19,447 jobs.

Investment pledges during the quarter came from five investment promotion agencies: BOI, BOI-BARMM, CDC, PEZA and SBMA.