Investment pledges for the Philippines from foreigners slumped 44 percent to P18.3 billion in the third quarter from P32.9 billion last year.
The pledges were tallied by seven Investment Promotion Agencies (IPA) including the Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), Authority of the Freeport Area of Bataan (AFAB), BOI-Autonomous Region of Muslim Mindanao (BOI-ARMM), and Cagayan Economic Zone Authority (CEZA).
The Philippine Statistical Authority (PSA) said the pledges were made up of equity investments, loans, and reinvested earnings. The amount do not represent actual investments generated but rather foreign investment commitments that may come in the near future.
Cumulative approved FI for the first nine months reached P91.8 billion, falling by 35.4 percent from the amount recorded last year at P142.1 billion.
Of the seven IPAs, CDC, CEZA and AFAB registered increases during the quarter, with 263.2 percent, 78 percent, and 43.1 percent, respectively.
Despite the increases for the three IPAs, the PSA data noted that pledges from PEZA, BOI and SBMA went down by 46.3 percent, 50.2 percent and 67.2 percent, respectively.
Meanwhile, manufacturing, real estate activities and food services drew the largest amount of investment pledges during the quarter.
The PSA said manufacturing contributed the largest amount of committed foreign investments in the third quarter of 2014. The investment pledges for the industry were registered at P8.8 billion or 48 percent of total FI during the quarter.
Administrative and support service activities came in second with investment pledges valued at P3.8 billion, contributing 20.8 percent, followed by real estate activities, which accounted for 13.3 percent or P2.4 billion, it said.
The PSA added that the top three prospective investing countries for the third quarter of 2014 include the Netherlands, Japan and the United States.
“The Netherlands led the list of top countries as it intended to pour in PhP 4.4 billion worth of investments, accounting for 24.3 percent of the total FI during the third quarter of 2014,” it said.
The PSA data also showed that the total combined approved investments from both foreign investors and Filipino nationals in the third quarter of 2014 declined by 15.7 percent to P159.6 billion from P189.3 billion registered in the comparable quarter in 2013.
“Filipino nationals continued to dominate the investments approved during the quarter, supplying 88.5 percent or P141.3 billion, lower by 9.6 percent from pledges committed a year ago,” the agency said.
The statistical agency also said that foreign and Filipino ventures approved by the IPAs in the third quarter of 2014 are expected to generate 54,606 jobs, increasing by 38.9 percent from previous year’s projected employment.
Out of these anticipated jobs, 74.3 percent would come from projects with foreign interest, it said.
For the full-year 2013, the total approved FI slid by 5.4 percent, dropping from P289.5 billion in 2012 to P274.0 billion in pledges in 2013.