NSCB - Press Release - Decline in Approved FDIs Eases

Total foreign direct investments (FDI) in the second quarter of 2009 approved by the Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA) remained low at PhP 19.9 billion, posting a significant decline of 73.0 percent from PhP 73.9 billion in the same quarter last year. Although this marks the third consecutive quarter of declines in approved FDI, the decline is lower than the declines registered in the previous two quarters, an indication that the global crisis may be over.

Korea bested all other countries in FDI intentions committing about 25.6 percent of the total FDI applications or PhP 5.1 billion for the second quarter of 2009. Following closely are Hong Kong and Japan with pledges representing 19.0 percent and 12.8 percent, respectively, of the total FDI applications for the quarter. For the first time since the third quarter of 2000, Hong Kong landed in the top three countries with biggest FDI commitments pledging PhP 3.8 billion in the second quarter of 2009 from PhP 142.2 million in 2008. Hong Kong investments were mostly intended to fund projects in finance and real estate industry.

Finance and real estate had the highest FDI as commitments for this industry quadrupled during the period, from PhP 1.9 billion in the second quarter of 2008 to PhP 7.6 billion in 2009. Private services came in second with PhP 6.6 billion worth of investments but this is 53.2 percent lower than last year.

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A total of 29,006 jobs are expected to be generated from the FDI projects approved in the second quarter of 2009, down by 25.8 percent from last year’s projected employment of 39,117 jobs. The bulk of these jobs (52.0 percent) is in the private services industry.

During the period, PEZA contributed the largest share of 63.6 percent, equivalent to PhP 12.7 billion worth of commitments while SBMA came in a far second with a 13.3 percent share. CDC’s share to total FDI approvals is 12.3 percent, equivalent to PhP 2.4 billion while BOI contributed only PhP 2.2 billion worth of pledges, accounting for the smallest share of 10.8 percent of the total approved FDI for the period.

CDC recorded the highest growth in FDI approvals with 38.8 percent while BOI registered the largest decline at 95.9 percent.

ROMULO A. VIROLA
Secretary General

Contact Persons:

Josephine P. Ferre and Florande S. Polistico
Tel. No.: (+6 32) 895-5002; (+6 32) 896-7981
E-mail: jr.penaflor@nscb.gov.ph ; fs.polistico@nscb.gov.ph

2nd Quarter 2009 Foreign Direct Investments Report