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Approved foreign investments jumped 434.4% in the third quarter compared to the same period last year
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The commitments approved by investment promotion agencies mostly went into manufacturing activities
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The investments given the green light by IPAs jumped to P146.75 billion for the July to September period, a big leap from the P27.46 billion for the same period in 2023
Approved foreign investments jumped 434.4% in the third quarter to P146.75 billion compared to P27.46 billion from the same period last year, according to data from the Philippine Statistics Authority.
The commitments approved by investment promotion agencies (IPAs) mostly went into manufacturing activities.
The IPAs included the Board of Investments, BOI-Bangsamoro Autonomous Region in Muslim Mindanao, Clark Development Corp., Cagayan Economic Zone Authority, Philippine Economic Zone Authority, and the Subic Bay Metropolitan Authority.
The sharp rise in foreign investment pledges for the period was partly credited to the approval of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, or CREATE MORE, according to Michael Ricafort, chief economist of Rizal Commercial Banking Corp.
CREATE MORE was signed into law on Nov. 11.
Ricafort told local media the hike in investment commitments could also be due to the start of interest cuts after almost four years in the Philippines and the US, which cut borrowing costs for expansion projects and new investments.
The manufacturing sector received the biggest chunk of investments at P70.57 billion, or 48.1% of the total. The second biggest share were from electricity, gas, steam and air conditioning supply at P51.92 billion or 35.4%, followed by real estate at P13.13 billion or 8.9%.
The biggest investment pledges came from South Korea with P53.72 billion or 36.6% of the third quarter total, followed by Switzerland with P51.84 billion (35%), then Japan at P15.96 billion (10.9%).
Location-wise, Calabarzon took the largest share of the foreign investment pledges at P58.86 billion (40.1%), followed by the Bicol region at P51.84 (35.3%), then Central Luzon with P15.20 billion (10.4%).
The total approved investments of foreign and Filipino nationals reached P541.29 billion in the third quarter, an increase of 542.1% from the reported amount of P84.29 billion in the same quarter of the previous year.
Filipino nationals contributed P394.54 billion or 72.9% share to the total approved investments during the third quarter of 2024.
The fresh investments from foreign and Filipino sources are seen to create 33,727 jobs, 49.4% higher than the 22,571 jobs created in the same quarter of 2023.
Ricafort said the foreign direct investments are seen to continue to rise in the coming months as further rate cuts are implemented. The only damper could be lower investments from US companies as a result of the recent elections. The incoming Trump administration is expected to prioritize investments at home rather than abroad.
