Foreign investment approvals by the country’s investment promotion agencies (IPAs) surged by more than half in the first quarter of 2026, although overall approved investments—including Filipino-led projects—declined sharply during the period, according to the Philippine Statistics Authority (PSA).

In a report on Thursday, May 14, the PSA said approved foreign investments reached ₱42.64 billion during the first quarter, up 52.3 percent from ₱27.99 billion in the same period last year.

IPAs grant tax and other fiscal and non-fiscal incentives to qualified investors in a bid to attract investments into the country, resulting in forgone government revenues. These approved foreign investment pledges are not yet considered foreign direct investments (FDIs) reported by the Bangko Sentral ng Pilipinas (BSP), since it usually takes some time before approved commitments are implemented and officially recorded as actual capital inflows.

Seven out of 15 IPAs reported foreign investment approvals during the quarter, namely the Bases Conversion and Development Authority (BCDA), the Board of Investments (BOI), Clark Development Corp. (CDC), Cagayan Economic Zone Authority (CEZA), Clark International Airport Corp. (CIAC), the Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA).

By source country, South Korea accounted for the largest share of approved foreign investment commitments at ₱25.37 billion, equivalent to 59.5 percent of total.

Singapore followed with ₱3.18 billion or 7.5 percent of total, while China came in third with ₱2.54 billion or 5.9 percent.

In terms of industries, arts, entertainment, and recreation attracted the biggest share of approved foreign investments at ₱10.38 billion or 24.4 percent of total.

This was followed by manufacturing with ₱9.08 billion or 21.3 percent of total, and accommodation and food service activities with ₱9.07 billion or 21.28 percent.

Among regions, Central Luzon cornered the bulk of approved foreign pledges at ₱33.08 billion or 77.6 percent of total.

Calabarzon followed with ₱3 billion or seven percent of total, while National Capital Region (NCR) received ₱2.13 billion or five percent.

Despite the jump in foreign investment pledges, total approved investments from both foreign and Filipino nationals fell by 30.8 percent to ₱125.95 billion in the first quarter from ₱181.97 billion a year ago.

Filipino firms accounted for ₱83.31 billion, or 66.1 percent, of the total approved investments during the period.

Projects related to electricity, gas, steam, and air-conditioning supply accounted for the largest share of total approved investments at ₱29.58 billion or 23.5 percent.

Accommodation and food service activities followed with ₱24.03 billion or 19.1 percent of total, while manufacturing accounted for ₱21.89 billion or 17.4 percent.

Approved investments in the first quarter are expected to generate 21,623 jobs, down 31.9 percent from the projected 31,758 employment during the same period last year.

Of the total projected employment, 13,108 jobs or 60.6 percent are expected to come from foreign-led projects.