Foreign investments hit P256B in ’11

MANILA, Philippines – Total foreign direct investments (FDI) totaled P256.1 billion last year, the highest amount of investment pledges recorded since 1996, the National Statistical Coordination Board (NSCB) reported yesterday.

In the fourth quarter of 2011 alone, total FDIs reached P165.8 billion, 42.2 percent higher than the P116.6 billion approved in the same period in 2010.

FDIs, as defined in the balance of payments manual, are investments “made to acquire a lasting interest by a resident entity in one economy in an enterprise resident in another economy.” These investments are approved by the six investment promotion agencies of government, namely the Board of Investments (BOI), Clark Development Corp. (CDC), Philippine Economic Zone Authority (PEZA) and Subic Bay Metropolitan Authority (SBMA). Other investment promotion agencies are the Authority of the Freeport Area of Bataan (AFAB) and the Board of Investments Autonomous Region of Muslim Mindanao (BOI-ARMM).

“The amount is the highest quarterly FDI turnout ever since the government started compiling consolidated approved FDIs and comes out of the commitments coursed through PEZA which accounted for about 87.3 percent of the total FDIs,” the NSCB said in its latest report.

In terms of sources, the United States pledged the most FDIs in the fourth quarter of 2011, accounting for a 32.3 percent share in total FDI commitments.

By sector, the manufacturing industry continued to be the top recipient of investment pledges, with a 54 percent share or P89.5 billion during the quarter.

“Real estate activities came in second with investment pledges valued at P47.6 billion, contributing 28.7 percent, followed by electricity, gas, steam and air conditioning supply at P20.4 billion or 12.3 percent share,” the NSCB said.

Meanwhile, approved investments of foreign and Filipino nationals in the fourth quarter of last year amounted to P227.5 billion, higher by 2.3 percent higher than the P222.4 billion approved a year ago.

Pledges from Filipino nationals stood at P61.7 billion which accounted for 27.1 percent of the total approved investments in the quarter.

According to the NSCB, these foreign and Filipino ventures approved by the government’s investment promotion agencies in the fourth quarter of the year are expected to create 53,585 jobs.

The figure is higher by 40.6 percent from the previous year’s projected employment of 38,101 jobs, NSCB data also showed. –Iris C. Gonzales (The Philippine Star)