Applications for FDI pledges received and approved by all investment promotion agencies (IPAs) in the fourth quarter of 2007 swelled to PhP 102.6 billion from PhP 17.3 billion recorded in the same period a year ago.

Investment pledges from Singapore, majority of which were intended for the electricity industry, soared to PhP 41.9 billion in the fourth quarter of 2007 from PhP 0.3 billion in the same quarter in 2006.  Singapore topped the list of foreign investors, pledging  40.8 percent of the total FDIs approved during the quarter.  Taiwan, United Kingdom, and the Netherlands follow with 9.8 percent, 7.9 percent, and 7.5 percent share, respectively. Major chunk of investment commitments from these three countries are envisioned to finance electricity, mining and services industries.

The manufacturing industry, which has consistently topped the recipients of FDI pledges was dislodged by the electricity industry in the last quarter of 2007. About fifty one percent of the total approved FDIs or PhP 52.5 billion worth of investments for the quarter were intended for the electricity industry, particularly, electric power generation; followed by private services and manufacturing industries which shared 13.0 percent and 12.9 percent, respectively.

Other industries that showed increased amount of investments causing total FDIs to balloon by 492.1 percent in the fourth quarter of 2007, include mining, construction, and finance and real estate.  The mining industry continued to receive pledges from foreign investors, which started in the second quarter of 2006.  Meanwhile, the construction industry bested all other industries in terms of growth, expanding tremendously from PhP 0.7 billion in the fourth quarter of 2006 to PhP 6.7 billion in the fourth quarter of 2007, growing by almost ten times its 2006 levels.

During the last quarter of 2007, the Board of Investments (BOI) posted the highest growth rate among the investment promotion agencies (IPAs), having approved PhP 78.7 billion worth of investments or 24 times the PhP 3.3 billion approved in the fourth quarter of 2006.  All other IPAs likewise registered increases in investment approvals. Investment applications approved by Subic Bay Metropolitan Authority (SBMA) during the quarter grew significantly from PhP 0.5 billion to PhP 9.1 billion, sharing 8.9 percent of total FDI approvals for the period.  

The Philippine Economic Zone Authority (PEZA) and Clark Development Corporation (CDC) shared 13.5 percent and 1.0 percent, respectively of the total FDI approved during the quarter.

Table 1 - Approved foreign direct investments:
Fourth Quarter 2006 and 2007
In billion pesos

The projects envisioned from the FDI approved by the four IPAs in the fourth quarter of 2007 are expected to generate a total of 28,628 jobs, up by 22.8 percent from the 23,322 jobs expected from projects approved in the same period in 2006.

Of the total projected employment, 48.6 percent or 13,908 jobs are expected to come from PEZA-approved investment projects; 36.2 percent or 10,351 jobs from BOI; and 14.6 percent or 4,180 jobs from SBMA.  CDC had a minimal share of 0.7 percent of the total projected employment from FDI projects.