A.1 Total approved FDI (levels)

FDI applications received and approved in the second quarter of 2010 by the four major IPAs, namely: Board of Investments (BOI), Philippine Economic Zone Authority (PEZA), Clark Development Corporation (CDC), and Subic Bay Metropolitan Authority (SBMA) amounted to PhP 13.8 billion, falling by 31.0 percent from the year-ago level of PhP ­­19.9 billion (Part II – Table 1a).  Almost half (48.2 percent) or PhP 6.6 billion of these investments were coursed through PEZA.  SBMA followed closely at 30.5 percent or PhP 4.2 billion worth of investment pledges.   BOI contributed a share of 14.7 percent and CDC, 6.5 percent (Table A below and Part II – Table 1a).

Only SBMA posted increase in FDI applications registering a double-digit increase of 57.9 percent from last year’s PhP 2.7 billion.  All other IPAs suffered setbacks with CDC recording the highest fall of 63.3 percent from last year’s PhP 2.4 billion, followed by PEZA declining by 47.6 percent from PhP 12.7 billion, and BOI decreasing by 6.2 percent (Table A below and Part II – Table 1a).

A.1.2   January to June 2010

The first six months of the year saw FDI applications increase to PhP 60.5 billion, 152.9 percent higher than the PhP 23.9 billion FDI approved in the same period in 2009. All of the country’s four major IPAs posted remarkable increases in FDI applications with CDC recording the highest increase from last year’s PhP 2.5 billion to PhP 24.0 billion.  CDC accounted for 39.7 percent of total approved FDI, next to PEZA which topped the list of IPAs at 46.0 percent or PhP 27.8 billion worth of investment pledges.  SBMA and BOI shared 8.5 percent or PhP 5.2 billion, and 5.8 percent or PhP 3.5 billion, respectively (Part II – Table 1b).

A.2      Top performing countries

A.2.1   Second Quarter 2010

The People’s Republic of China (PROC) bested all other countries in FDI intentions, committing PhP 3.7 billion or 26.7 percent of the total FDI applications for the second quarter of 2010. China’s investment intentions for the quarter is eleven times the PhP 0.3 billion it committed in the same quarter in 2009 (Figure 2a below and Part II - Table 2a).  A large chunk of these are intended to finance projects in electricity, gas and water.

Following closely are the United States of America (USA) and India with pledges representing 11.8 percent or PhP 1.6 billion and 10.7 percent or PhP 1.5 billion, respectively. These were intended to fund projects in manufacturing, and private services.   Significant investment commitments from India started in 2009, and these are mostly in the private services, particularly business activities.

A.2.2   January to June 2010

On a semestral basis, Korea leads all other countries, committing PhP 24.2 billion or 40.0 percent of the total FDI applications. Investment commitments from Korea are mostly in the manufacturing of semiconductor and related products.  Trailing far behind are Japan, a constant source of FDI, cutting in 17.9 percent of the pie or PhP 10.8 billion worth of FDI pledges, and Singapore contributing PhP 6.2 billion or a share of 10.2 percent.  All three countries (Korea, Japan, and Singapore) posted significant increases in investment commitments compared to their year ago pledges of PhP 5.4 billion, PhP 3.4 billion, and PhP 0.2 billion, respectively (Part II – Table 2b).

A.3      Top performing industries

A.3.1   Second Quarter 2010

Manufacturing remained as top recipient of FDI commitments as it stands to receive PhP 4.2 billion, accounting for 30.4 percent of the total approved FDI for the quarter.  Not far behind are private services; and electricity, gas and water sharing 27.7 percent and 26.3 percent, respectively.  While FDI intentions in manufacturing as well as in electricity, gas and water expanded in the second quarter 2010, investment pledges to finance projects in the private services weakened from PhP 6.6 billion to 3.8 billion (Table B below and Part II – Table 3a).

A.3.2   January to June 2010

Looking at the first six months of 2010, manufacturing maintained its top post, receiving the highest pledges at PhP 47.1 billion, contributing 77.8 percent.  Investment pledges in manufacturing were nine times the PhP 5.1 billion committed a year ago.  Private services came in far second with investment commitments valued at PhP 5.5 billion, contributing 9.1 percent, followed by electricity, gas and water at PhP 3.8 billion or 6.3 percent share (Figure 3b below and Part II – Table 3b).

A.4      Projected employment from approved FDI

A.4.1   Second Quarter 2010

A total of 21,581 jobs are expected to be generated from the FDI projects approved by the four IPAs in the second quarter of 2010, lower by 25.6 percent from last year’s projected employment of 29,006 jobs (Part II – Table 4a).

The bulk or 71.4 percent of the projected employment would come from FDI projects approved by PEZA.  The number of potential jobs however, is 36.8 percent lower than the 24,376 jobs expected from FDI projects registered in PEZA in the same period last year. 

BOI-approved investment projects are expected to generate the second highest number of jobs at 4,068 jobs, accounting for 18.8 percent of the total for the quarter.  CDC accounted for 6.7 percent or 1,453 jobs while SBMA had minimal share of 3.0 percent, equivalent to 651 potential jobs (Part II Table 4a).

A.4.2   January to June 2010

Projected employment on approved FDI commitments during the first half of 2010 stood at 47,655 jobs from last year’s 48,602 jobs.  FDI projects approved by PEZA are expected to generate the most number of jobs at 38,107 jobs or 80.0 percent of the total projected employment, distantly followed by BOI with 4,445 jobs. 

Among the FDI projects approved by the four IPAs, only CDC-approved FDI projects posted an increase in projected employment at 216.4 percent, from last year’s 1,234 potential jobs to 3,904 jobs in the first six months of 2010 (Part II - Table 4b).

Posted: 23 August 2010.