Foreign investment pledges approved by the government accelerated in the first three months of the year amid the country’s new economic liberalization measures, data from the Philippine Statistics Authority (PSA) showed.

From January to March 2023, total foreign investments approved by the government’s investment promotion agencies (IPAs) amounted to P172.70 billion, dwarfing the P8.98 billion recorded in the same period last year.

These investments were pledges from the Board of Investments, Clark Development Corp., Philippine Economic Zone Authority, and Subic Bay Metropolitan Authority.

However, no foreign investment approvals were reported by six IPAs during the quarter.

They were the Authority of the Freeport Area of Bataan, Board of Investments-Bangsamoro Autonomous Region in Muslim Mindanao, Cagayan Economic Zone Authority, Poro Point Management Corp., Tourism Infrastructure and Enterprise Zone Authority, and Clark International Airport Corp.

According to the PSA, most foreign investment commitments were from Germany with P156.96 billion (90.9 percent), followed by Japan with P3.82 billion (2.2 percent) and the Netherlands with P2.65 billion (1.5 percent).

Electricity, Gas, Steam, and Air Conditioning Supply had the highest pledges, followed by Manufacturing as well as Administrative and Support Service Activities.

Among the regions in the country, approved foreign investments intended to finance projects in Western Visayas Region amounted to P117.38 billion or 68.0 percent of the total. This was followed by CALABARZON Region with P47.47 billion (27.5 percent).

Meanwhile, the total approved investments of foreign and Filipino nationals reached P480.36 billion in the first quarter, an increase of 151.8 percent compared with PhP 190.77 billion in the same period last year.

Filipino nationals contributed P307.66 billion or 64.0 percent.

Approved investments of foreign and Filipino nationals in the first quarter were expected to generate a total of 25,453 jobs.

Out of this total employment, 76.3 percent would be absorbed by foreign investment projects.

Earlier, Finance Secretary Benjamin E. Diokno said the spectrum of industries in that foreign investors can participate has grown wider than ever before.

“The economic liberalization measures that the Philippine government has enacted in recent years have opened up key high-growth sectors to international participation,” Diokno said.

The amendments to the Retail Trade Liberalization Act (RTLA), Foreign Investments Act (FIA), and Public Service Act (PSA) relaxed foreign restrictions on investments in the country.

Companies engaged in solar, wind, hydro, and tidal energy are also welcome to invest in the Philippines’ renewable energy (RE) sector now that it has been opened up to full foreign ownership.

The Philippines also offers a simpler and more effective fiscal incentives system that is performance-based, time-bound, targeted, and transparent through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.