Metro Manila (CNN Philippines, June 3) — Foreign investment commitments approved by the Philippine government dropped by 32.9% in the first three months of 2021 as the global market continues to face the COVID-19 pandemic, data from the Philippine Statistics Authority (PSA) showed on Thursday.
Foreign investments in the first quarter reached ₱19.55 billion, lower than the ₱29.14 billion recorded a year earlier, the PSA said in a statement.
Approved investments are commitments or pledges made to investment promotion agencies and not the actual foreign direct investments which the central bank reports.
The pledges in January to March period were from six investment promotion agencies: Board of Investments, Clark Development Corporation, Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Authority of the Freeport Area of Bataan, and Cagayan Economic Zone Authority.
According to the PSA, Japan led the pack, accounting for 54.8% — or ₱10.72 billion — of the total approved foreign investments.
It is followed by Cayman Islands (5.8%) and South Korea (3%) with ₱1.14 billion and ₱592.63 million commitments, respectively.
The manufacturing sector is expected to receive ₱11.14 billion of the total foreign investments.
Information and Communication, meanwhile, stands to get ₱4.58 billion, while the Real Estate Activities will have ₱2.24 billion.
Region IV-A, or Calabarzon, will take home the majority — or ₱7.54 billion — of the committed investments.
Central Visayas will have ₱2.73 billion, while the country’s capital region will get ₱1.74 billion.
The PSA noted that the pledges may create 18,416 jobs.
