The Board of Investments (BOI) expects foreign investment pledges approved by the country’s investment promotion agencies (IPAs) to maintain their upward trajectory through the end of the year, despite a sharp decline in total approved investments in the first quarter.

Department of Trade and Industry (DTI) Undersecretary and BOI Managing Head Ceferino Rodolfo said the 52.3-percent surge in foreign investment approvals from January to March signals sustained momentum for the rest of the year, even against the backdrop of global headwinds.

“This strong first-quarter performance sets the tone for sustained foreign investment inflows in the months ahead, driven by ongoing reforms, improved ease of doing business, and proactive investment promotion,” Rodolfo said in a statement on Friday, June 5.

The latest Philippine Statistics Authority (PSA) data showed that total foreign investments approved during the three-month period reached ₱42.64 billion, up from ₱27.99 billion in the same period last year.

These investments were approved by seven of the country’s 15 IPAs, namely the BOI, Bases Conversion and Development Authority (BCDA), Clark Development Corp. (CDC), Cagayan Economic Zone Authority (CEZA), Clark International Airport Corp. (CIAC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA).

South Korea was the leading source of foreign investment commitments in the first quarter, contributing ₱25.37 billion, or 59.5 percent of total.

This was followed by Singapore with ₱3.18 billion worth of investments, accounting for 7.5 percent of total, while China placed third with ₱2.54 billion, or 5.9 percent.

Trade Secretary Cristina Roque said the country’s appeal among regional investors demonstrates that the Philippines is positioning itself as an attractive destination for high-impact investments that generate jobs and support economic growth.

“Under the leadership of President Ferdinand R. Marcos Jr., reforms that improve the ease of doing business and strengthen the country’s competitiveness helped drive more than a 50-percent increase in foreign investment approvals in the first quarter,” said Roque, who chairs the BOI.

Rodolfo added that the government’s targeted investment-promotion efforts and the overall resilience of the country’s investment landscape are helping foreign investments grow.

But PSA data showed that while foreign capital is trending upward, local investment pledges moved in the opposite direction, declining by nearly 46 percent to ₱83.31 billion in the first quarter from ₱153.98 billion in the same period last year.

As a result, total approved investments, covering both foreign and local pledges, declined by 30.8 percent to ₱125.95 billion from ₱181.97 billion a year ago.

These investments are expected to generate 21,623 jobs, down by nearly 32 percent from the 31,758 jobs projected a year ago.

Projects related to the electricity, gas, steam, and air conditioning supply sector continued to account for the largest share of total investments in the first quarter, amounting to ₱29.58 billion, or 23.5 percent of total.

Accommodation and food service activities placed second with ₱21.89 billion, followed by manufacturing with ₱21.89 billion, and real estate activities with ₱20.72 billion.

Among the IPAs, the BOI remained the largest contributor to total approvals, registering ₱58.2 billion from 50 projects in the first quarter, which are expected to generate 6,226 jobs.

On an annual basis, the IPA’s approved investments declined by nearly half from ₱112.52 billion in the same period last year.