III. Methodology

1. The PSA, as the agency that coordinates all statistical matters in government, has been tasked to compile the quarterly report on approved investments. This report integrates the quarterly statistical reports on approved investments submitted by government agencies working on investment promotion, administration, and regulation.

2. The Approved Investment Report provides an analysis on investments of foreign and Filipino nationals approved by thirteen investment promotion agencies (IPAs), namely: Authority of the Freeport Area of Bataan (AFAB), Bases and Conversion Development Authority (BCDA), Board of Investments (BOI), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Cagayan Economic Zone Authority (CEZA), Clark Development Corporation (CDC), Clark International Airport Corporation (CIAC), John Hay Management Corporation (JHMC), Philippine Economic Zone Authority (PEZA), Poro Point Management Corporation (PPMC), Subic Bay Metropolitan Authority (SBMA), Tourism Infrastructure Enterprise Zone Authority (TIEZA), and Zamboanga City Special Economic Zone Authority (ZCSEZA).

3. The IPAs submit data on approved investments and projected employment of foreign and Filipino nationals to PSA on a quarterly basis. Not all approved investments will materialize during the period. There is a gestation period between approval and actual investments.

4. To arrive at the total approved investments and projected employment, the project costs and employment of each firm reported by thirteen IPAs are summed up for the quarter.

IV. Concepts and Definition of Terms

1. Approved Investment represents investment commitments and pledges by Filipino and foreign nationals regardless of the percentage of ownership of the ordinary shares, and as approved and registered by the Authority of the Freeport Area of Bataan (AFAB), Bases and Conversion Development Authority (BCDA),  Board of Investments (BOI), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Cagayan Economic Zone Authority (CEZA), Clark Development Corporation (CDC), Clark International Airport Corporation (CIAC), John Hay Management Corporation (JHMC), Philippine Economic Zone Authority (PEZA), Poro Point Management Corporation (PPMC), Subic Bay Metropolitan Authority (SBMA), Tourism Infrastructure Enterprise Zone Authority (TIEZA), and Zamboanga City Special Economic Zone Authority (ZCSEZA). It does not represent actual investments generated but rather investment commitments which may come in the near future. This consists of equity, loans, and reinvested earnings.

2. Approved Foreign Investment (FI) represents the amount of proposed contribution or share of foreigners to various projects in the country. In the operationalization of computing for approved FI as approved and registered with the Investment Promotion Agencies (IPAs), all approved FI including those with less than ten percent of the ordinary shares are included.  The reason is that approved FI as rendered by the IPAs have long lasting interest unlike portfolio investments.

3. Approved investment in the Information and Communication Technology Sector (ICT) includes investment commitments in the manufacturing of ICT equipment, spare parts and accessories including professional, medical, and scientific instruments as well as ICT services, e.g., wholesale trade of computers, electronic parts and equipment; telecommunications; renting of computers and other office equipment; computer services and other related activities.

4. Foreign Direct Investments (FDI), as defined in the BOP Manual, are investments made to acquire a lasting interest by a resident entity in one economy in an enterprise resident in another economy. The purpose of the investor is to have a significant influence, an effective voice in the management of the enterprise. To operationalize this definition, the FIIS followed the benchmark definition of the Organization for Economic Cooperation and Development (OECD) which considers as direct investment enterprise an incorporated or unincorporated enterprise in which a direct investor who is resident in another economy owns ten percent or more of the ordinary shares or voting power (for incorporated enterprise) or the equivalent (for an unincorporated enterprise). The ten percent cut-off in equity is used to distinguish between direct and portfolio investments, which is not covered by the FIIS at present.

V. Dissemination of Results

The Approved Investment report is being released forty-five (45) days after the reference quarter in the PSA website with the following schedules.