Foreign investment pledges more than double

MANILA, Philippines — Foreign investment pledges approved by investment promotion agencies (IPAs) surged by more than 127 percent to P394.45 billion in the fourth quarter of 2023 from P173.61 billion a  year ago amid the country’s strong economic performance, according to the Philippine Statistics Authority (PSA).

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the latest improvement in the approved foreign investment data may have to do with improved economic and financial markets performance in recent months, as well as easing inflation.

“Philippine economic growth is among the fastest in ASEAN (Association of Southeast Asian Nations) or Asia and long-term US and local interest rates have already eased since November 2023, thereby encouraging more foreign investments  to come into the country amid favorable demographics and lower long-term interest rates that help boost investments globally, including foreign direct investments into the country,” he said.

He said the increased foreign investments could also be from some realized investment commitments made during the various foreign trips of President Marcos.

The latest  investment figures were approved by the following IPAs: Authority of the Freeport Area of Bataan, Board of Investments (BOI), Clark Development Corp., Philippine Economic Zone Authority and Subic Bay Metropolitan Authority.

“No foreign investment approvals were reported by the Bases Conversion and Development Authority, BOI-Bangsamoro Autonomous Region in Muslim Mindanao, Cagayan Economic Zone Authority, Clark International Airport Corp., John Hay Management Corp., Poro Point Management Corp., Tourism Infrastructure and Enterprise Zone Authority and Zamboanga City Special Economic Zone Authority,” the PSA said.

Of the total approved foreign investments for the fourth quarter of 2023, Netherlands accounted for the highest investment commitment amounting to P345.76 billion or 87.7 percent.

This was followed by Japan at P31.37 billion for an eight percent share and Singapore at P4.99 billion or 1.3 percent.

By sector,  the electricity, gas, steam and air conditioning supply industry received the largest amount of approved