Total approved foreign investments down by 9.3 percent in Q4 2016

Reference No.:
Released Date:
Thursday, February 23, 2017
Total approved foreign investments (FI) in the fourth quarter of 2016 amounted to PhP 125.7 billion, 9.3 percent lower compared to PhP 138.6 billion approved in the same period in 2015. This comprised the foreign investments approved by the seven investment promotion agencies (IPAs), namely: the Authority of the Freeport Area of Bataan (AFAB), Board of Investments (BOI), BOI-Autonomous Region of Muslim Mindanao (BOI-ARMM), Clark Development Corporation (CDC), Cagayan Economic Zone Authority (CEZA), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA).  For annual 2016, total approved investments reached PhP 219.0 billion. This was a decline of 10.7 percent from PhP 245.2 billion in 2015.  
The top three investing countries in the fourth quarter of 2016 were Netherlands, Australia, and the United States of America (USA).  Investment from the Netherlands reached PhP 34.9 billion or 27.7 percent share. Australia committed PhP 31.8 billion or 25.3 percent, while USA pledged PhP 20.1 billion or 16.0 percent of the total approved FI. Total pledges from the three countries contributed 69.1 percent to the total approved FI.
Manufacturing received the biggest portion of approved FI in Q4 2016 amounting to PhP 66.8 billion or 53.2 percent share.  Electricity, Gas, Steam, and Air Conditioning Supply came in second with investment commitments valued at PhP 32.0 billion or 25.4 percent. This is followed by Administrative and Support Service Activities at PhP 11.8 billion or 9.4 percent. 
In terms of location, bulk of the approved foreign investments in the fourth quarter of 2016 would be intended to finance projects in Region IVA – CALABARZON amounting to PhP 68.2 billion or 54.2 percent. This was followed by Cordillera Administrative Region (CAR) at PhP 22.2 billion or 17.7 percent, and the National Capital Region (NCR) at PhP 19.2 billion or 15.3 percent.
Approved investments of foreign and Filipino nationals amounted to PhP 274.8 billion in the fourth quarter of 2016, down by 17.3 percent from previous year’s PhP 332.3 billion. Filipino nationals continued to dominate investments approved in Q4 2016. This comprised 54.3 percent or PhP 149.1 billion worth of total pledges. Among the industries, Manufacturing would receive the highest investments at PhP 92.5 billion or 33.7 percent of the total approved investments.
Total projects of foreign and Filipino investors approved by the seven IPAs for the fourth quarter of 2016 are expected to generate 49,054 jobs. Out of the total anticipated jobs for the period, 66.7 percent would come from projects with foreign investments. 
National Statistician and Civil Registrar General