FOREIGN investment pledges contracted 22.4 percent in the third quarter of 2022, according to the latest data released by the Philippine Statistics Authority (PSA).
Based on the data on Approved Foreign Investments, foreign businesses pledged P13.05 billion in investments in the third quarter, lower than the P16.82 billion reported in the same quarter of 2021.
However, investment pledges made by both Filipino and Foreign investors reached P159.18 billion in the third quarter of 2022, or an increase of 58.4 percent compared with P100.48 billion in the same quarter of the previous year.
“These investments were pledges from four Investment Promotion Agencies (IPAs), namely: Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA),” the PSA said.
“No foreign investment approvals were reported from Authority of the Freeport Area of Bataan (AFAB), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Cagayan Economic Zone Authority (CEZA), Poro Point Management Corporation (PPMC), and Tourism Infrastructure Economic Zone Authority (TIEZA) for the third quarter of years 2021 and 2022,” PSA added.
The FI commitments for the third quarter of 2022 were mainly driven by investments from Japan, which accounted for 34.5 percent of the total approved FI, followed by South Korea (15.5 percent) and Singapore (12.6 percent).
Japan committed P4.5 billion while South Korea and Singapore pledged P2.02 billion and P1.64 billion, respectively.
Manufacturing bested all other industries as it stands to receive P7.2 billion or 55.2 percent of the total FI pledges.
Administrative and Support Service Activities came in second with investment commitments valued at P3.38 billion or 25.9 percent share, followed by Real Estate Activities with P1.35 billion or 10.3 percent FI contribution.
The biggest chunk of the approved foreign investment in the third quarter of 2022 was intended to finance projects in Calabarzon amounting to P6.6 billion or 50.6 percent of the total FI.
This was followed by Central Luzon with P3.02 billion or 23.1 percent and the National Capital Region with P2.24 billion or 17.1 percent.
Meanwhile, total approved projects of foreign and Filipino investors in the third quarter of 2022 were projected to generate 28,139 jobs.
Out of the total anticipated employment for the period, approved projects with foreign interest were projected to generate 17,994 employment based on the reports of IPAs.