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4th Quarter 2009
FDI QUARTERLY REPORT

Posted 18 February 2010

4th Quarter 2009
Approved investments, foreign and Filipino nationals

1. Total approved investments by foreign and Filipino nationals

1.1. Fourth Quarter 2009

The combined investment commitments of foreign and Filipino investors reached PhP 196.6  billion in the fourth quarter of 2009, three times the PhP 73.9 billion committed in the same period in 2008.  Prospective ventures from both foreign and Filipino nationals posted significant increases, expanding by 309.3 percent and 107.7 percent, respectively.

Of the PhP 196.6 billion worth of investment pledges, 55.5 percent or PhP 109.1 billion would come from Filipino nationals compared to last year when Filipino investments accounted for 71.1 percent.

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

The bulk or 58.1 percent of investment commitments amounting to PhP 114.3 billion made by foreign and Filipino nationals for the quarter were coursed through PEZA.   BOI shared PhP 78.3 billion, contributing 39.8 percent.  SBMA and CDC put in a combined share of 2.0 percent or PhP 4.0 billion.  All IPAs experienced considerable increases in investment pledges during the last quarter of 2009.


1.2. January to December 2009

The year 2009 saw a 32.3 percent decline in investment commitments from both foreign and Filipino nationals from PhP 464.2 billion to PhP 314.4 billion.  The 13.3 percent gain or PhP 175.4 billion worth of investment pledges coursed through PEZA was not enough to offset the double-digit declines of BOI, CDC and SBMA.

Pledges from Filipino investors for all four quarters of 2009 stood at PhP 192.3 billion which accounted for the majority (61.2 percent) of the total approved investments during the period .

2. Total approved investments by industry

2.1. Fourth Quarter 2009

Most of the investments of foreign and Filipino nationals committed during the quarter were intended to fund projects in manufacturing amounting to PhP 88.2 billion.  Investments in water industry, particularly projects on water supply and distribution ranked second as it accounted for 23.4 percent or PhP 46.0 billion.   Finance and real estate, a consistent recipient of investment pledges came in third with 18.5 percent or PhP 36.4 billion.

Figure 4. Total Approved Investments by Industry
Third quarter 2009

2.2. January to December 2009

Topping the list of recipients of investment commitments during the year are manufacturing, garnering 33.8 percent of the PhP 314.1 billion potential investments, followed by finance and real estate with 28.4 percent share or PhP 89.1 billion; and water at 14.6 percent or PhP 46.0 billion, all of which were committed in the last quarter of 2009.

3. Projected employment from approved investments

3.1. Fourth Quarter 2009

Projects from investments of foreign and Filipino nationals approved by the four IPAs for the period are expected to create 104,518 jobs, higher by 239.7 percent than last year’s projected employment of 30,770 jobs. 

Projected employment from investment pledges coursed through all four IPAs registered double digit increases with BOI recording the highest projected employment during the period at 77,888 jobs or 74.5 percent of the total for the quarter.   PEZA-, SBMA- and CDC-approved projects are expected to generate 22,966 jobs, 2,939 jobs and 725 jobs accounting for 22.0 percent, 2.8 percent and 0.7 percent, respectively of the total jobs for the period

3.2. January to December 2009

Approved projects from the combined foreign and Filipino investors in 2009 are expected to generate 184,478 new jobs, 4.6 percent lower than the number of jobs posted in 2008.  Projects registered through BOI posted the highest projected employment at 95,372 potential jobs, and contributed 51.7 percent of the total projected employment for the period. PEZA-approved projects recorded 79,435 potential jobs sharing about 43.1 percent.  SBMA and CDC jointly shared 5.2 percent or 9,671 prospective jobs.   CDC experienced the largest reduction of 72.0 percent in number of expected jobs

4. Projected employment by industry

4.1. Fourth Quarter 2009

Of the 104,518 potential jobs expected from total approved investments of foreign and Filipino nationals during the fourth quarter 2009, more than half (52.9 percent) or 55,243 jobs would be in the water industry.  Finance and real estate, manufacturing, and private services stand to supply 27.8 percent or 29,015 jobs, 13.9 percent or 14,515 jobs, and 3.5 percent or 3,699 jobs, respectively.  Agriculture, communication, construction, electricity, gas, mining, trade, and transportation would be sharing a combined 2.0 percent of the total projected employment (Table C below).

 

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

Industry Q4
2008
Q4
2009
Percent to Total
Q4 2009
Growth Rate
Q4 2008 -
Q4 2009
Agriculture 690 678 0.6 (1.7)
Communication - 52 0.0 -
Construction 10 98 0.1 880.0
Electricity 222 166 0.2 (25.2)
Finance & Real Estate 4,380 29,015 27.8 562.4
Gas - 3 0.0 -
Manufacturing 8,602 14,515 13.9 68.7
Mining 213 659 0.6 209.4
Private Services 16,201 3,699 3.5 (77.2)
Storage 148 - - -
Trade 111 233 0.2 109.9
Transportation 193 157 0.2 (18.7)
Water - 55,243 52.9 -
Total 30,770 104,518 100.0 239.7

B.4.2. January to December 2009

Out of the 184,478 new jobs to be generated from total approved investments of foreign and Filipino nationals in 2009, 30.0 percent or 55,283 jobs would be in the water industry while 28.7 percent or 53,026 jobs would come from finance and real estate.  Manufacturing, and private services stand to supply 20.4 percent or 37,562 jobs, and 18.6 percent or 34,403 jobs, respectively.  Agriculture, communication, construction, electricity, gas, mining, transportation, and trade would share the rest of the potential jobs, with a combined share of 2.3 percent (Table D below).

Table D. Projected Employment from Approved Investments by Industry
2008 and 2009

Industry
2008

2009
Percent to Total
2009
Growth Rate
2008 - 2009
Agriculture 1,445 772 0.4 (46.6)
Communication 3,297 54 0.0 (98.4)
Construction 3,471 223 0.1 (93.6)
Electricity 2,395 893 0.5 (62.7)
Finance & Real Estate 52,579 53,026 28.7 0.9
Gas - 3 0.0 -
Manufacturing 55,688 37,562 20.4 (32.5)
Mining 6,448 695 0.4 (89.2)
Private Services 64,595 34,403 18.6 (46.7)
Storage 181 - - -
Trade 530 904 0.5 70.6
Transportation 2,762 660 0.4 (76.1)
Water - 55,283 30.0 -
Total 193,391 184,478 100.0 (4.6)

 

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