The Department of Trade and Industry (DTI) is confident that the inflow of funds for approved foreign direct investments (FDI) will pick up in the coming months.
In his presentation on the updates on investments leads during a sectoral meeting with President Ferdinand R. Marcos Jr. in Malacañang last Tuesday, DTI Secretary Alfredo E. Pascual said several projects, which were approved by investment promotion agencies (IPA) are already set to be realized.
“[The] BOI [Board of Investments] and PEZA [Philippine Economic Zone Authority] are building up a good pipeline of approved foreign-invested projects that will eventually be implemented as actual investments,” Pascual said.
DTI came out with the projection after the Bangko Sentral ng Pilipinas (BSP) reported last month that the inflow of funds for FDI during the first half of the year declined by 20 percent compared to the same period last year.
BSP cited “investor concerns over weak growth prospects amid persistent global uncertainties” among the main causes for the lower FDI inflows.
Pascual, however, noted they already have “ways forward to ensure project realization.”
Citing data from DTI’s IPAs, he said there were $8.4 billion worth of approved investment during the first half of 2023 compared to the $1.1 billion in the same period last year.
“The future looks promising, Mr. President, given the rising trend in foreign investment approvals by the DTI’s investment promotion agencies—BOI and PEZA. In addition, we continue our efforts to promote the Philippines as an attractive investment destination,” Pascual said.
Since the start of the Marcos administration, he said the DTI, through the IPAs, was able to secure P1.4 trillion in total approved investments.
Last Tuesday, DTI reported that of the 130 project leads the President was able to secure from his overseas trips since the start of his term, 11 have already been realized.
It noted four to five similar projects, including business process outsourcing, are expected to materialize soon.