FI pledges down 54.1% to ₧8.98B in Q1–PSA

FOREIGN investment pledges plunged in the first quarter of 2022 based on the latest data released by the Philippine Statistics Authority (PSA).

PSA said Approved Foreign Investments declined 54.1 percent to P8.98 billion in the first quarter of 2022 from the P19.55 billion in the same period in 2021.

The data was obtained from approved investments by the six investment promotion agencies (IPAs) such as the Authority of the Freeport Area of Bataan (Afab), Board of Investments (BOI), Clark Development Corporation (CDC), Cagayan Economic Zone Authority (Ceza), Philippine Economic Zone Authority (Peza), and Subic Bay Metropolitan Authority (SBMA).

“No investment approvals were reported from BOI-Bangsamoro Autonomous Region in Muslim Mindanao [BOI-BARMM] for first quarter of years 2021 and 2022,” the PSA said.

The data showed foreign investment commitments for the first quarter of 2022 were mainly driven by investments from Japan, which

accounted for 39.7 percent of the total approved FI, followed by South Korea at 18.5 percent and Singapore at 18.2 percent.

Japan committed P3.56 billion, while South Korea and Singapore pledged P1.66 billion and P1.63 billion, respectively. Manufacturing bested all other industries as it stands to receive P5.15 billion or 57.4 percent of the total FI pledges.

Electricity, Gas, Steam, and Airconditioning Supply came in second, with investment commitments valued at P1.66 billion or 18.5 percent share, followed by Administrative and Support Service Activities with P977.37 million or 10.9 percent FI contribution.

PSA data also showed majority of the approved foreign investments in the first quarter of 2022 is intended to finance projects in Calabarzon, worth P4.87 billion or 54.2 percent of the total.

This was followed by Cagayan Valley with P1.66 billion or 18.5 percent; and Central Visayas with P986.59 million or 11 percent.

Meanwhile, approved investments of foreign and Filipino nationals reached P190.57 billion in the first quarter of 2022, an increase of 15.6 percent compared with P164.89 billion in the same period of the previous year.

PSA said Filipino nationals continued to dominate the approved investments during the quarter, posting P181.59 billion worth of investment pledges or 95.3 percent share.

Total approved projects of foreign and Filipino investors in the first quarter of 2022 were projected to generate 14,416 jobs.

Of the total anticipated jobs for the period, approved projects with foreign interest were projected to generate 9,655 jobs based on the reports of IPAs.