-
South Korea emerged as the largest source of capital inflows in the first quarter this year with total foreign investments approved up 52%
-
Energy, particularly renewable energy, led investment approvals
South Korea emerged as the largest source of capital inflows in the first quarter this year with total foreign investments approved up 52%.
READ: Approved foreign investments in PH surge 52% in Q1
The Department of Trade and Industry (DTI), through the Board of Investments (BOI), reported that foreign investment commitments approved by investment promotion agencies (IPAs) reached P42.64 billion during the January-to-March period, up from P27.99 billion a year earlier.
South Korea accounted for P25.37 billion, or 59.51% of total foreign investment approvals, making it the country’s largest source of committed investments during the quarter. Singapore followed with P3.18 billion, while China contributed P2.54 billion.
Trade Secretary and BOI chairperson Ma. Cristina Roque said the strong first-quarter performance underscored the Philippines’ continued attractiveness as an investment destination.
“Under the leadership of President Ferdinand R. Marcos Jr., reforms that improve the ease of doing business and strengthen the country’s competitiveness helped drive more than 50% increase in foreign investment approvals in the first quarter. With South Korea accounting for nearly 60% of total inflows, the results reflect the strength of our economic partnership and continued investor confidence in the Philippines as a destination for high-impact investments that generate jobs and support economic growth,” Roque said.
Total investment approvals — foreign and domestic capital combined — amounted to P125.95 billion in the quarter, with domestic investments accounting for P83.31 billion. The approved projects are projected to generate 21,623 jobs.
Among investment promotion agencies, the BOI registered the largest share of approvals, recording P58.20 billion from 50 projects. Of the total, P5.24 billion came from foreign investors, while P52.96 billion represented domestic investments. The projects are expected to create 6,226 jobs.
Within BOI-approved foreign investments, Singapore was the top source with P2.97 billion, followed by China with P762.80 million and the United States with P489.35 million. Other significant sources included the Netherlands and Canada.
South Korean investments approved by the BOI included a 2.000-megawatt-peak (MWp) and 1.600-megawatt-alternating current (MWac) solar power project in Camotes Island, Cebu, with a total project cost of P93.95 million.
By sector
The energy sector, including renewable energy projects, accounted for the largest share of approved investments at P29.58 billion, representing 23.48% of the total. Accommodation and food service activities followed with P24.03 billion, while manufacturing and real estate projects attracted P21.89 billion and P20.72 billion, respectively.
Investment approvals in accommodation and food service activities rose by 917.7% from a year earlier, while investments in arts, entertainment and recreation surged by more than 3,000%, reflecting renewed investor interest in tourism-related and consumer-driven industries.
Trade undersecretary and BOI managing head Ceferino Rodolfo said the investment pipeline remains strong for the rest of the year.
“This strong first-quarter performance sets the tone for sustained foreign investment inflows in the months ahead, driven by ongoing reforms, improved ease of doing business, and proactive investment promotion,” Rodolfo said.
The BOI said it remains committed to promoting a whole-of-government approach to investment generation as it seeks to position the Philippines as a competitive and reliable destination for local and foreign investors while supporting inclusive economic growth.
