PSA: Foreign investment commitments down 63.6% in Q1 2024

The amount of foreign investment pledges secured by the Philippines saw a double-digit decline in the first quarter of 2024, the Philippine Statistics Authority (PSA) reported.

Data released by the PSA on Thursday showed that approved foreign investment commitments booked by the country's investment promotion agencies reached P148.43 billion during the January to March period.

This was lower by 63.6% from P408.22 billion in foreign investment pledges secured in the same period in 2023.

The approved foreign investments during the period came from the Board of Investments (BOI), Clark Development Corporation (CDC), Cagayan Economic Zone Authority (CEZA), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA).

The following investment promotion agencies, meanwhile, reported reported no foreign investment approvals for the quarter: Authority of the Freeport Area of Bataan (AFAB), Bases Conversion and Development Authority (BCDA), BOI-Bangsamoro Autonomous Region in Muslim Mindanao (BOI-BARMM), Clark International Airport Corporation (CIAC), John Hay Management Corporation (JHMC), Poro Point Management Corporation (PPMC), Tourism Infrastructure and Enterprise Zone Authority (TIEZA), and Zamboanga City Special Economic Zone Authority (ZCSEZA).

Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the decline in approved foreign investments in the first quarter "may be attributed to high base/denominator effects after large investment pledges last year, especially on renewable power."

Of the total foreign investment commitments during the period, the PSA said Singapore was the highest source with P70.06 billion worth of pledges or 47.2% of the total.

This was followed by The Netherlands at P38.89 billion or 26.2% and South Korea at P20.23 billion or 13.6%.

The statistics authority said electricity, gas, steam, and the air conditioning supply industry received the largest amount of approved investments at P109.19 billion or 73.6% of the total; followed by accommodation and food service activities with P20.09 billion, and manufacturing with P12.62 billion, or shares of 13.5% and 8.5%, respectively.

CALABARZON received the largest share of pledged foreign investments amounting to P117.39 billion or 79.1% of the total approved foreign investments for the first quarter of 2024.

Central Luzon followed as it received P23.83 billion, while Bicol Region secured P2.86 billion.

Central Luzon and Bicol Region accounted for 16.1% and 1.9% of the total foreign investment pledges.

Meanwhile, total approved investment commitments of both foreign and Filipino nationals reached P309.45 billion, down 35.6% from P480.48 billion year-on-year.

Filipinos contributed P161.03 billion or 52% share to the total during the period.

Approved investment pledges of both foreign and Filipino nationals in the first quarter of 2024 were expected to generate a total of 27,711 employment, according to the PSA.

The agency said the figure indicates an increase of 8.8% from the 25,470 expected employment to be generated in the same quarter of the previous year.

Out of the total generated employment, 23,378 employment would be absorbed by foreign investment projects, the PSA said. — VDV, GMA Integrated News