The country’s favorable economic environment failed to attract more foreign investment in the third quarter, according to data from the Philippine Statistics Authority (PSA).
The PSA reported on Tuesday, November 15 that total foreign investment approved from July to September 2022 decreased by 22% to 13.5 billion pesos, from 16.82 billion pesos in the same period the last year.
The decline was recorded after five government investment promotion agencies (IPAs) reported no approvals during the quarter.
These IPAs were Bataan Free Zone Authority, Board of Investments (BOI)-Bangsamoro Autonomous Region in Muslim Mindanao, Cagayan Economic Zone Authority, Poro Point Management Corp. and the Tourism Infrastructure Economic Zone Authority.
The 13.5 billion pesos in foreign investment approvals came from just four APIs, namely BOI, Clark Development Corp., Philippine Economic Zone Authority and Subic Bay Metropolitan Authority, PSA said.
“FI commitments for the third quarter of 2022 were primarily driven by investments from Japan, which accounted for 34.5% of total approved FI, followed by South Korea (15.5%) and of Singapore (12.6%),” PSA said.
Japan pledged 4.5 billion pesos while South Korea and Singapore pledged 2.02 billion pesos and 1.64 billion pesos respectively.
In the third quarter, the manufacturing industry led all other industries in terms of foreign investment with 7.2 billion pula of commitments, or 55.2% of the total.
Administrative and support services activities came second with investment commitments valued at P3.38 billion or 25.9% share, followed by real estate activities with a contribution of P1.35 billion or 10.3%.
Most of the foreign investment approved in the third quarter went to finance projects in CALABARZON worth 6.60 billion pesos, followed by central Luzon with 3.02 billion pesos (23.1% ) and the National Capital Region with 2.24 billion pesos (17.1%). percent).
Investments approved by foreign and Filipino nationals reached 159.18 billion pesos in the third quarter, an increase of 58.4 percent from 100.48 billion pesos a year earlier.
Filipino nationals contributed 146.13 billion pesos or 91.8% of the investments. The total number of approved projects is expected to generate 28,139 jobs.
Of the total number of jobs forecast for the period, projects approved with foreign interests are expected to generate 17,994 jobs based on API reports.
Earlier, the PSA said the country’s economy accelerated 7.6 percent in the third quarter, compared to 7.5 percent in the second quarter and 7.0 percent in the same period last year.
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