Total local and foreign investment commitments in the first three months of the Duterte administration dropped 20 percent to P133.8 billion for the July-to-September period of 2016 from P168.2 billion year-on-year, the Philippine Statistics Authority said Wednesday.
The PSA said the figures were based on projects approved by seven investment promotion agencies—Board of Investments, Clark Development Corp., Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Authority of the Freeport Area of Bataan, BOo-Autonomous Region of Muslim Mindanao and Cagayan Economic Zone Authority.
Foreign investors accounted for P26.7 billion of the total investment pledges during the period, while local companies shared the balance.
Approved commitments in the third quarter brought total approved investments for the first three quarters at P411.2 billion, up 16 percent from P354.6 billion recorded in the same period a year ago.
South Korea ranked first among the investors for the July-to-September period, with commitments of P6.5 billion or 24.3 percent of the total. The United States and Singapore ranked second and third, respectively, with investments of P4.6 billion and P4.1 billion.
The National Capital Region stands to receive the largest amount of foreign investments, valued at P5.5 billion or 20.4 percent. It was followed by SOCCSKARGEN region with pledges of P4.7 billion and Negros Island with P4.5 billion or 17 percent
Electricity, gas, steam and air conditioning supply topped the list of industries in the third quarter period of 2016, with P42.2 billion in investment pledges from both Filipino and foreign investors.
The projected employment from approved investments in the three-month period is expected to generate 33,590, down 31 percent on year.
“Out of these anticipated jobs, 83.2 percent would come from projects with foreign interest,” the PSA said.
Net inflows of foreign direct investments, of actual investments, meanwhile, jumped 25 percent in the first nine months to $5.9 billion from $4.7 billion a year ago.
Bangko Sentral said the nine-month figure increased from a year earlier, despite the big decline in September’s investments. The nine-month tally also surpassed the full-year figure of $5.7 billion in 2015.
“The continued FDI inflows reflect investors’ confidence in the country’s economy on account of sustained growth prospects and strong macroeconomic fundamentals,” Bangko Sentral said in a statement.
Data showed net inflows of FDIs fell 69.3 percent in September to $469 million from $1.5 billion in the same period last year, pulled down by lower investments in debt instruments.