The Philippine Statistics Authority (PSA) reported that committed foreign investments last year went up 25 percent as the local economy reopened after the prolonged pandemic.
Data from the PSA showed Thursday, Feb. 16, that the total approved foreign investments reached P241.89 billion in January to December last year, up 25.6 percent compared with P192.55 billion in the previous year.
The investment pledges were from the six Investment Promotion Agencies (IPAs). They were the Authority of the Freeport Area of Bataan, Board of Investments (BOI), BOI-Bangsamoro Autonomous Region in Muslim Mindanao, Clark Development Corp., Philippine Economic Zone Authority, and Subic Bay Metropolitan Authority.
No foreign investment approvals were reported from Cagayan Economic Zone Authority, Poro Point Management Corp., and Tourism Infrastructure and Enterprise Zone Authority for 2022.
The increased foreign investments reflect the better than expected economic output, which grew 7.6 percent last year, its highest level in more than four decades.
In October to December alone, total foreign investments amounted P173.61 billion, up 30 percent from P133.47 billion in the same period a year ago.
The bulk of investment commitments was from Singapore (64.2 percent), followed by Japan (21.5 percent), and United Kingdom (5.9 percent).
Singapore committed P111.47 billion, while Japan and United Kingdom pledged P37.41 billion and P10.22 billion, respectively.
Information and Communication bested all other industries as it stands to receive P114.29 billion or 65.8 percent of the total pledges.
Real Estate Activities came in second with investment commitments valued at P35.57 billion or 20.5 percent share, followed by Manufacturing with P19.30 billion or 11.1 percent contribution.
The biggest chunk of the approved foreign investment in the fourth quarter, amounting to P101.36 billion or 58.4 percent of the total, was intended to finance projects classified as “Nationwide” or situated in various regions of the country.
This was followed by Ilocos Region with P32.66 billion (18.8 percent), CALABARZON with P30.71 billion (17.7 percent), and Central Luzon with P5.7 billion (3.3 percent).
Meanwhile, the combined approved investments of foreign and Filipino nationals reached P478.16 billion in the fourth quarter, an increase of 17 percent year-on-year from P408.54 billion. Filipino nationals contributed P304.55 billion or 63.7 percent.
Projects of approved investments of foreign and Filipino nationals in the final quarter were projected to generate a total of 37,766 employment.
Out of this total anticipated employment , approved projects with foreign interest were projected to generate 23,364 employment.