The number of foreign investment pledges that the Philippines declined by 63.60 percent in the first quarter of 2024 amid President Ferdinand Marcos Jr.’s pitches to world leaders and investors during his overseas trips.
Latest data from the Philippine Statistics Authority (PSA) showed Total Foreign Investments (FI) approved in the first quarter of 2024 declined to P148.43 billion from the P408.22 billion total FI in the same quarter of 2023.
Investments approved are pledges or commitments made by domestic or international investors. However, not every approved investment would materialize.
Documents generated by the Organization for Economic Cooperation and Development and the Congressional Policy and Budget Research Department of the House of Representatives indicate that these go through a gestation period, or the time between approval and when the proposed investment is established and made operational.
According to PSA, eight (8) Investment Promotion Agencies (IPA) received no foreign investment approvals during the first quarter.
These include the Authority of the Freeport Area of Bataan (AFAB), Bases Conversion and Development Authority (BCDA), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Clark International Airport Corporation (CIAC), John Hay Management Corporation (JHMC), Poro Point Management Corporation (PPMC), Tourism Infrastructure and Enterprise Zone Authority (TIEZA), and Zamboanga City Special Economic Zone Authority (ZCSEZA).
Meanwhile, PSA said three IPAs received several pledges, namely: Board of Investments (BOI), Clark Development Corporation (CDC), Cagayan Economic Zone Authority (CEZA), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA).
“Of the total approved FI for the first quarter of 2024, Singapore posted the highest investment commitment amounting to P70.06 billion or 47.2 percent. It was followed by the Netherlands at P38.89 billion (26.2 percent), and South Korea at P20.23 billion (13.6 percent),” PSA said.
Electricity, gas, steam and air conditioning supply industry received the largest amount of approved investments at PhP 109.19 billion or 73.6 percent of the total approved FI.
This was followed by Accommodation and food service activities with PhP 20.09 billion and Manufacturing with P12.62 billion, or shares of 13.5 percent and 8.5 percent, respectively.
Among the regions in the country, CALABARZON received the largest share of pledged investment amounting to P117.39 billion or 79.1 percent of the total approved FI for the first quarter of 2024.
This was followed by Central Luzon with P23.83 billion and Bicol Region with P2.86 billion. These accounted for 16.1 percent and 1.9 percent of the total FI, respectively.
The total approved investments of Foreign and Filipino nationals reached P309.45 billion, a decrease of 35.6 percent from the reported amount of P480.48 billion in the same quarter of the previous year.
Filipino nationals contributed P161.03 billion or 52.0 percent share to the total approved investments during the first quarter of 2024. (TCSP)
