Foreign investments

“Foreign investments to boost the industrial space”

The robust influx of foreign investment in the second quarter, particularly in the transportation, storage and manufacturing sectors, is expected to boost the absorption of industrial and warehousing space, according to Colliers Philippines.

From April to June, approved investment pledges from foreign sources rose 105% to 46.2 billion pesos ($889 million), according to data from the Philippine Statistics Authority (PSA). Some 19.3 billion pesos, or about 42%, have been pledged for real estate activities. This is followed by transport and storage (31%) at 14.52 billion pesos and manufacturing (13%) at 6.15 billion pesos.

Regionally, Central Luzon was the largest beneficiary, accounting for approximately 73% or 33.94 billion pesos of overall pledges, followed by Central Visayas at 3.94 billion pesos or 8.5% , and Calabarzon with 3.7 billion pesos or 8.0%.

“We believe that Central Luzon will be a viable alternative industrial location outside of the Cavite-Laguna-Batangas (CALABA) corridor,” Joey Roi Bondoc, associate director of Colliers Research, said in the company’s latest Market Intelligence report.

For developers considering expanding their industrial footprint, Colliers told them to explore opportunities in the region given its skilled workforce and new industrial parks.

“From 2022 to 2024, we see the completion of approximately 307 hectares (760 acres) of new industrial space in Pampanga, Tarlac and Zambales,” Bondoc said. Colliers noted that Central Luzon is becoming a prime destination for the development of industrial parks nationwide through improved infrastructure connectivity and the establishment of new industrial spaces in the region, resulting from the rise of more integrated communities.