1. Total approved investments by foreign and Filipino nationals

1.1. Third Quarter 2009

The combined investment commitments of foreign and Filipino investors reached PhP 30.7 billion in the third quarter of 2009, dropping by 68.4 percent from PhP 97.3 billion in the same period in 2008.

Of the PhP 30.7 billion worth of investment pledges, about two thirds or PhP 20.3 billion would come from Filipino nationals compared to last year where Filipino investments accounted only to one third. Prospective ventures from Filipino nationals shrunk by 33.5 percent from its year ago level of PhP 30.6 billion.

Figure 1. Total approved Investments of Foreign and Filipino Nationals
Third quarter, 2008 and 2009

The bulk (73.1 percent) of investment commitments amounting to PhP 22.4 billion made by foreign and Filipino nationals were coursed through PEZA.   BOI shared PhP 4.8 billion which, however, is a big drop from last year’s PhP 48.2 billion.  CDC and SBMA put in PhP 1.9 billion and PhP 1.5 billion worth of investments, respectively.  All IPAs experienced decrease in investment pledges except SBMA which registered a 68.1 percent increase from last year’s PhP 0.9 billion to PhP 1.5 billion.

1.2. January to September 2009

Investment commitments from both foreign and Filipino nationals declined by 69.9 percent from PhP 390.3 billion to PhP 117.5 billion during the first nine months of 2009.  This is due to the large decrease of 83.4 percent in investment applications made through BOI, from PhP 276.5 billion to only PhP 45.9 billion.    PEZA and BOI got the lion’s share of investment applications at 52.0 percent and 39.1 percent, respectively. 

Pledges from Filipino investors for all three quarters of 2009 stood at PhP 83.2 billion which accounted for the majority (70.8 percent) of the total approved investments during the period. 

2. Total approved investments by industry

2.1. Third Quarter 2009

Of the PhP 30.7 billion investment pledges in Q3 2009, 43.6 percent or PhP 13.4 billion comes from finance and real estate, and 36.6 percent or PhP 11.2 billion is shared by manufacturing. Private services came in third with 14.5 percent or PhP 4.4 billion worth of investments.  Investment in these sectors is dominated by Filipino nationals which accounted for 42.6 percent for finance and real estate, 13.8 percent for manufacturing, and 4.9 percent for private services.

Figure 2. Total Approved Investments by Industry
Third quarter 2009

2.2. January to September 2009

Topping the list of recipients of investment commitments in the first nine months of 2009 are finance and real estate, garnering 42.0 percent of the PhP 117.5 billion potential investments, followed by electricity at 24.9 percent or PhP 29.2 billion.  Manufacturing and private services which are perennial recipients of investments followed close at 15.4 percent and 13.7 percent or PhP 18.1 billion and PhP 16.1 billion worth of investments.

3. Projected employment from approved investments

3.1. Third Quarter 2009

Projects approved by the four IPAs for the period are expected to create 19,638 jobs, lower by 36.8 percent than last year’s projected employment of 31,076 jobs. 

PEZA registered the highest projected employment during the period at 14,492 jobs or 73.8 percent of the total for the quarter.  BOI-, SBMA- and CDC-approved projects are expected to generate 3,928 jobs, 888 jobs and 330 jobs accounting for 20.0 percent, 4.5 percent and 1.7 percent, respectively of the total for the period.  All four IPAs registered double-digit reduction in the number of potential jobs.

3.2. January to September 2009

Projects approved from the combined foreign and Filipino investors in the first nine months of 2009 are expected to generate   79,960 new jobs, 50.8 percent lower than the number of jobs posted in the same period in 2008.  Projects registered through PEZA posted the highest projected employment at 56,469 potential jobs, and contributed 70.6 percent of the total projected employment for the period. BOI-approved projects recorded 17,484 potential jobs sharing about 21.9 percent.  SBMA and CDC jointly shared 7.5 percent or 6,007 prospective jobs.   BOI and CDC experienced the largest reduction (about 79 percent each) in number of expected jobs.

4. Projected employment by industry

4.1. Third Quarter 2009

Of the 19,638 new jobs expected from total approved investments during the third quarter 2009, 44.9 percent or 8,817 jobs would be in the private services industry.  Manufacturing and finance and real estate stands to supply 35.9 percent or 7,041 jobs and 15.7 percent or 3,089 jobs respectively while agriculture, communication, construction, trade transportation and water would be sharing a combined 3.5 percent of the total projected employment  (Table C below).

Table C. Projected Employment from Approved Investments by Industry
Third Quarter, 2008 and 2009

Industry	Q3 2008	Q3 2009	Percent to Total Q3 2009	Growth Rate Q3 2008 - Q3 2009
Agriculture	-	94	0.5	-
Communication	-	2	0.0	-
Construction	3,370	40	0.2	(98.8)
Electricity	560	-	-	-
Finance & Real Estate	2,040	3,089	15.7	51.4
Manufacturing	9,854	7,041	35.9	(28.5)
Private Services	14,510	8,817	44.9	(39.2)
Trade	166	378	1.9	127.7
Transportation	576	150	0.8	(74.0)
Water	-	27	0.1	-
Total	31,076	19,638	100	(36.8)

B.4.2. January to September 2009

Out of the 79,960 potential jobs to be generated from total approved investments in the first three quarters of 2009, private services, manufacturing and finance and real estate industries stand to get the lion’s shares of labor at 48.9 percent, 28.8 percent and 19.5 percent, respectively.  The rest of the potential jobs will be shared by agriculture, communication, construction, electricity, water, transportation, trade, construction, and mining industries.