Investments News Analysis

Off the charts – 2015 Philippine FDI

Total approved foreign investment (FI) for 2015 reached PHP245.2 billion, an increase of 31.2% from PHP187.0 billion in 2014. The top three prospective investing countries were: the Netherlands, committing PHP82.7 billion or 33.7% of the total, followed by Japan and South Korea with investments of PHP54.7 billion and PHP23.2 billion, respectively. The industries set to receive the largest amounts for approved FI are manufacturing, with commitments of PHP134.6 billion or 54.9 %, followed by electricity, gas, steam, and air-conditioning supply, PHP46.5 billion or 19.0%, and administrative and support-service activities, PHP22.9 billion or 9.3%.

In terms of regional beneficiaries, Region IVA – Calabarzon stands to receive the largest amount of FI – PHP115.7 billion or a 47.2% share. The National Capital Region (NCR) has pledges for PHP34.1 billion or 13.9% and the Cordillera Administrative Region (CAR), PHP26.3 billion or 10.7%.The total approved investments of foreign and Filipino nationals for 2015, however, amounted to PHP686.9 billion – 9.1% lower than the PHP755.9 billion committed a year ago. Electricity, gas, steam and air-conditioning supply, stands to gain PHP256.2 billion or 37.3%. Job prospects fared worse. Projected employment from 2015 approved investments was 169,075 jobs, down by 40.3% from the 283,354 jobs expected a year ago. The largest jobs generator is expected to be administrative and support-service activities – just 51,290.

2014 & 2015: approved foreign investments, PHPbn

fullsizeoutput_3fd

Sources: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

Total approved FI for 2015 reached PHP245.2 billion, up by 31.2% from PHP187.0 billion in the preceding year. Around 68.9% of the total FI applications was coursed through PEZA with pledges amounting to PHP168.9 billion. BOI accounted for the second largest share of FI approvals with 24.3% or PHP59.5 billion while CDC accounted for 4.0% or PHP9.7 billion. The other IPAs contributed 2.9% of the total FI for the year 2015.

By investor-country share: approved foreign investment, 2015

fullsizeoutput_3fe

Sources: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

Annual 2015. For the full year 2015, the Netherlands topped the list of investing countries, committing PHP82.7 billion or 33.7% of the total FI applications. Next came Japan, accounting for PHP54.7 billion or 22.3%, and South Korea, putting in PHP23.2 billion or 9.4% share. Investments from the Netherlands are mainly intended to fund projects in manufacturing and electricity, gas, steam, and air-conditioning supply. Investments from Japan would be in manufacturing while pledges from South Korea are mostly intended to finance projects in accommodation and food-services.

By region: share of approved foreign investment, 2015

fullsizeoutput_400

Sources: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

Region IVA – CALABARZON is set to receive almost half or 47.2% of the foreign investment commitments in the whole year of 2015 as FI in the region reached PhP 115.6 billion. Investment commitments intended for Region IVA grew by 32.6%. The second largest amount of FI during the period is intended for NCR, accounting for 13.9% or PHP34.1 billion. Meanwhile, CAR posted the third largest share of FI at PHP26.3 billion, 10.7% of the total approved investments. FI approvals for the National Capital Region (NCR) declined by 34.4% while commitments from Cordilera Administrative Region (CAR) grew 17 fold. Majority of the investments in Region IVA and CAR are intended for projects in manufacturing. For NCR, the ventures would be mostly in administrative and support services.

Total approved foreign investment by IPAs, 2014 & 2015: PHPm

foreign approved investments

Sources: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

Foreign investments were approved by the following seven investment promotion agencies (IPAs): Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA), Authority of the Freeport Area of Bataan (AFAB), BOIAutonomous Region of Muslim Mindanao (BOI-ARMM), and Cagayan Economic Zone Authority (CEZA).

Total approved investments, 1Q96 to 4Q15: PHPbn

fullsizeoutput_402

Sources: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

2014 & 2015: foreign/ Filipino nationals, approved investments, PHPbn

fullsizeoutput_403

Sources: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

Investment commitments from both Filipino and foreign nationals amounted to PhP 686.9 billion for the year 2015, a decline of 9.1% from PHP755.9 billion in 2014. Of the total amount during the year, 64.3% of the approved investments came from Filipino investors with PHP441.7 billion worth of pledges. Investment pledges put through BOI accounted for PHP366.7 billion, 53.4% of total investments. Investment commitments from PEZA totaled PHP285.0 billion or 41.5%. Meanwhile, investments approved by CDC and BOI-ARMM accounted for 1.8% or PHP12.6 billion and 1.0% or PHP6.6 billion, respectively. The other IPAs had collective pledges of PHP15.9 billion or 2.3% of the total investments.

By industry: approved investments, foreign/ Filipino nationals, 2015

fullsizeoutput_404

Sources: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

Electricity, gas, and steam and air-conditioning supply topped the list of recipients of investment intentions from both foreign and Filipino nationals in 2015 as it stands to receive PHP256.2 billion and 37.3% of total investments. Manufacturing came in second at PHP170.9 billion or 24.9% share, followed by real estate at PHP136.9 billion or 19.9%. Potential investments in electricity, gas, steam, and air-conditioning supply increased by 20%, while investments in manufacturing and real estate declined by 8.2% and 20.7% respectively.

By region: approved investments of foreign/ Filipino nationals, 2015

fullsizeoutput_3ff

Sources: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

Region IVA – CALABARZON stands to receive the largest amount of investments from foreign and Filipino nationals, pledging PHP271.3 billion or 39.5%. Investment commitments for the region grew by 21.1% during the year. NCR received the second largest amount of total investment pledges – 17.2% or PHP118.1 billion, followed by Region VI – Western Visayas – PHP75.0 billion or 10.9% of total pledges. NCR investment approvals declined by 45.9%; those for Region VI rose by 187.2%. The majority of investments in Region IVA are intended for projects in electricity, gas, steam, air-conditioning supply and manufacturing. Intended areas: real-estate activities and administrative and support-services activities (NCR); real-estate activities and electricity, gas, and steam and air-conditioning supply (Region VI).

The information on this page is based on the Philippine Statistics Authority report – The Foreign Investments in the Philippines: Fourth Quarter 2015 – which was published on 22 February 2016. The full report is available in printed or electronic format from info@psa.gov.ph