The second quarter of the fiscal year has proved to be fruitful with a 70.4% y/y rise in commitments from foreign investors which accounts for P30.9 billion. Following the slump at the start of the year The Philippines is definitely picking up on the investment front.
This was shown in the latest report issued by Philippine Statistics Authority’s (PSA), where the total approved foreign investments recorded from five investment promotion agencies (IPAs) showed an increase of P18.2 billion from the same quarter last year.
The PSA report included approvals of the following IPAs: the Board of Investments (BOI), the Cagayan Economic Zone Authority, the Clark Development Corp., the Philippine Economic Zone Authority, and the Subic Bay Metropolitan Authority. IPAs give away fiscal and non-fiscal incentives to investors. The Duterte administration wanted to rationalize this under the proposed second tax reform package or Tax Reform for Attracting Better and High-quality Opportunities Act (Trabaho).
When these foreign investment pledges materialize, then they are counted as foreign direct investment (FDI).
With the increase in approved foreign investments in the second-quarter there was a reverse in drop the country faced during the first quarter. As such, foreign investment pledges from January to June totalled P45.2 billion, a tenth more than the P41 billion during the first half of last year.
According to the recent report from The PSA, the top three sources of investment commitments from April to June were:
- Indonesia (P6.4 billion)
- Japan (P5.1 billion)
- United States (P4 billion)
In terms of industries, the biggest future recipients of foreign investment inflows include:
- Manufacturing (P12.8 billion)
- Construction (P7.1 billion)
- Administrative and support service activities (P5.4 billion)
Investments from Filipino led projects accounted for the bulk, which was 73 percent of the total, equivalent to P83.7 billion. The PSA said the total second-quarter investment approvals would create 44,526 jobs.
Kelmer Group is extremely excited about our presence in Manila and we want to educate business owners on the opportunities available in the region. We will be hosting a one day seminar on Wednesday, 7th November 2018. Our experts will be discussing the main reasons to invest in the Far Eastern region, this will then be followed by an opportunity to meet with them for a one on one session concentrating more on what your business requires.
Register today and book you one on one session with an expert from Singapore, Vietnam or the Philippines! Seats are limited!