First Quarter 2007

• Total approved foreign direct investments (FDIs) totaled PhP 17.9 billion in the first quarter of 2007, 71.9 percent lower than the PhP 63.5 billion approved in the same quarter a year ago. The first quarter saw a drop in investment pledges to the manufacturing sector, a robust growth for the private services sector, and a notable infusion of fresh investment pledges to the trade and mining sectors. While pledges to the manufacturing sector dropped in the quarter, it was the top recipient to commitments with the lion’s share of 70.1 percent or PhP 12.5 billion of the total approved investments from foreign nationals during the quarter.

• FDI pledges to the manufacturing sector, while dropping 79.0 percent, was recipient to the lion’s share of 70.1 percent or PhP 12.5 billion of total approved FDIs during the quarter. Pledges to the sector was kept afloat largely by two PEZA-approved projects committed to engage in the manufacture of vehicle transmission assembly and media recording heads, with combined pledges worth PhP 8.9 billion or 71.4 percent of the FDIs pledged to the sector during the quarter.

• Approved FDIs in the private services sector grew by a robust 33.1 percent to PhP 4.9 billion in the first quarter of 2007, increasing from its PhP 3.7 billion level in the same period in 2006. Investment pledges to the sector mainly came from commitments to operate call centers and business process outsourcing (BPO) services.

• The quarter also saw renewed interest from foreign investors to invest in trade and mining sectors. Pledges to the trade industry, at PhP 126.8 million, was second highest for the sector in the last three years. The mining industry likewise attracted PhP 104.3 million worth of FDIs in the first quarter of the 2007.

• Japan was the leading source of approved FDIs in the first quarter of 2007, registering PhP 6.9 billion worth of pledges mainly to the manufacturing sector. Netherlands and U.S.A. followed at second and third places with pledges to inject PhP 4.3 billion and PhP 3.6 billion, respectively.

• Investment projects with foreign interest, approved in the first quarter of 2007, was estimated to generate 27,494 jobs, down 15.6 percent from the 32,592 jobs expected from projects approved in the same period in 2006. An estimated 20,450 jobs, representing 74.4 percent of total jobs from approved investments with foreign interest are expected to come from PEZA-approved investment projects.