Foreign investments

Foreign investment recovers in 2021

Louise Maureen Simeon – The Filipina Star

February 16, 2022 | 00:00

MANILA, Philippines — Foreign investment rebounded last year as the economy was more open, but overall resources flowing into the country remain on the decline, the Philippine Statistics Authority said.

PSA data showed that foreign companies have slowly returned much-needed capital for economic recovery for the whole of 2021.

Foreign investment approved last year rose 71.5 percent to 192.34 billion pesos from the 2020 level of 112.12 billion pesos.

In the fourth quarter alone, approved investments soared nearly 270% to 133.47 billion pesos, from 36.49 billion pesos in the same period of 2020.

The government was the most lenient on restrictions in the last quarter as it took advantage of the holiday season, especially as COVID-19 cases plummeted.

The economy was also more open in 2021 as the government tried to avoid large-scale lockdown measures that would block the needed rebound.

However, PSA data showed that total investment from foreigners and Filipinos fell 34% to 756.63 billion pesos, from 1.14 trillion pesos in 2020. About 75% of these investments came from local investors .

Yet the percentage of foreign investment of the total also jumped to 25.4% last year, from 9% in 2020.

Investment commitments have been filed with the Board of Investments (BOI), BOI-Bangsamoro Autonomous Region in Muslim Mindanao, Clark Development Corp., Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Authority of the Freeport Area of ​​Bataan and Cagayan Economic Zone Authority.

The BOI secured the largest share at almost 80% to reach 152 billion pesos in 2021.

Of the 17 regions of the country, only the Zamboanga peninsula has not recorded any foreign investment.