The Philippine Statistics Authority (PSA) has revealed a significant decline in foreign investment commitments during the first quarter of 2024. The data, released on Thursday, May 16, indicates a sharp decrease of 63.6% compared to the same period in 2023.
Several investment promotion agencies, including the Board of Investments (BOI), Clark Development Corporation (CDC), and Philippine Economic Zone Authority (PEZA), reported a notable downturn in foreign investment approvals. Conversely, some agencies, such as the Authority of the Freeport Area of Bataan (AFAB) and the Bases Conversion and Development Authority (BCDA), reported no foreign investment approvals for the quarter.
Analysts Attribute Decline to Various Factors
Rizal Commercial Banking Corp. chief economist Michael Ricafort suggests that the decline in approved foreign investments could be attributed to high base effects following substantial investment pledges in renewable power sectors during the previous year.
Singapore Tops List of Foreign Investors, CALABARZON Receives Largest Share
Singapore emerged as the top source of foreign investment commitments during the first quarter of 2024, contributing 47.2% of the total pledges. The region of CALABARZON received the lion's share of foreign investments, amounting to 79.1% of the total approved foreign investments for the period.
Total Approved Investment Commitments Decline by 35.6% Year-on-Year
While foreign investment commitments experienced a significant decline, total approved investment commitments, including both foreign and Filipino nationals, also saw a decrease of 35.6% compared to the previous year. However, Filipino nationals contributed a substantial share of P161.03 billion, comprising 52% of the total approved investments for the period.
The PSA anticipates that the approved investment pledges for the first quarter of 2024 will generate a total of 27,711 employment opportunities, marking an increase of 8.8% from the previous year. Of these employment opportunities, foreign investment projects are expected to absorb 23,378 positions, according to the PSA.
