FDI in Q2 rose 9.4% to P44.1B

THE registration of fresh foreign direct investments (FDI) picked up in the second quarter of the year, increasing 9.4 percent to P44.1 billion compared to the same period last year.

This allowed the first-half FDI commitments to increase to P62.6 billion, just 0.4 percent higher from P62.3 billion registered in the first semester of 2011.

The National Statistical Coordination Board (NSCB) culled the data from the country’s seven investment promotion agencies: the Board of Investments (BOI), Clark Development Corp., Philippine Economic Zone Authority and Subic Bay Metropolitan Authority, as well as the Authority, of the Freeport Area of Bataan, BOI-Autonomous Region in Muslim Mindanao and Cagayan Economic Zone Authority.

The NSCB said Japan registered the highest FDI commitments in the second half of the year at P17.4 billion, or 39.6 percent of the total.

“Following behind are the Netherlands and the US, committing P9.8 billion and P4.3 billion, or 22.3 percent and 9.7 percent of the total approved FDI, respectively, during the quarter,” it added.

The manufacturing sector attracted the most FDI for the sector at P35.4 billion, or 80.4 percent of the total.

Transportation and storage came in second with investment pledges valued at P2.5 billion, contributing 5.8 percent, followed by real-estate activities at P1.9 billion or 4.4 percent share.

Including the new projects that were registered by Filipino citizens, the NSCB said total investments approved in the period reached P202.8 billion, 27.2 percent higher compared to the second quarter of 2011.

“Bulk of the investments committed by Filipinos are intended to finance activities in electricity, gas, steam and air-conditioning supply, contributing P95.1 billion and with a share of 46.9 percent, followed by manufacturing at P38.6 billion or 19 percent share and real-estate activities at P30.8 billion or 15.2 percent share,” according to the board.

The new projects registered by foreign and Filipino investors for the second quarter of 2012 are expected to create 33,381 jobs, 43.2 percent below last year’s projected employment of 58,819 jobs in the same period.

Out of these anticipated jobs, 66.2 percent would come from projects with foreign interest. –MAX V. DE LEON / REPORTER, Businessmirror