FDIs approved by gov’t agencies jump 32% to P25B in Q3

MANILA, Philippines – Foreign direct investments approved by government agencies in the third quarter of the year rose by 32 percent compared to the same period last year, the National Statistical Coordination Board (NSCB) reported yesterday.

According to the latest NSCB report, total FDIs approved in the third quarter by the four major investment promotion agencies of the government amounted to P25 billion, 32 percent higher than the P19 billion committed in the same period last year.

The third quarter approvals brought FDI approvals for the first nine months of the year to P87.3 billion or 9.9 percent higher than last year’s P79.4 billion.

The four investment promotion agencies of the government are the Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), and the Subic Bay Metropolitan Authority (SBMA).

In terms of sources, top investment countries are Japan (P9.7 billion), Korea (P4.5 billion) and the United States with P2 billion.

By sector, manufacturing remained the top recipient of FDI commitments as it stands to receive P9.6 billion, the NSCB said.

“Electricity, gas, steam and air conditioning came in second at P5.1 billion, followed by real estate activities at P4.8 billion,” the NSCB also said.

Meanwhile, the NSCB also reported that total approved investments of foreign and Filipino nationals tripled to P192 billion.

Of the amount, 87 percent are pledges from Filipino investors who dominate investments approved during the first three quarters of 2011.

“Most investments committed by Filipinos are intended to finance activities in electricity, gas, steam and air conditioning supply, particularly coal-fired power plants,” the NSCB said.

Moving forward, the NSCB said investment pledges in the third quarter are likely to create 40,660 jobs.

This is 51.4 percent higher than last year’s projected employment of 26,857 jobs.

“Out of these anticipated jobs, 25,643 new jobs or 63.1 percent would come from projects with foreign interest,” the NSCB also said. –Iris C. Gonzales (The Philippine Star)