1. Total approved FDI (levels and growth)

1.1. Third Quarter 2010

FDI applications received and approved in the third quarter of 2010 by the four major investment promotion agencies (IPA), namely: Board of Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA) reached PhP 19.0 billion, expanding by 82.9 percent from its year ago level of PhP 10.4 billion.  Majority or 98.7 percent of the investments committed during the quarter came from PEZA and BOI while CDC and SBMA contributed a minimal share of 0.9 percent and 0.4 percent, respectively.
 
Among the four IPAs, BOI which shared 48.0 percent of total FDI posted the highest increase in FDI applications from last year’s PhP 0.1 billion to PhP 9.1 billion, followed by PEZA which registered an increase of 19.2 percent.  PEZA approved 50.7 percent or PhP 9.6 billion worth of investment pledges.

CDC and SBMA suffered setbacks as investment commitments coursed through them posted  double-digit declines of 89.9 percent and 80.6 percent, respectively.

Table 1 - Total Approved FDI by Investment Promotion Agency
Third Quarter, 2009 and 2010
(in billion pesos)

Source:  BOI, CDC, PEZA, SBMA

1.2   January to September 2010

Approved FDI during the first nine months of 2010 totaled PhP 79.4 billion, more than twice the PhP 34.3 billion approved in the same period in 2009. 
All of the country’s four major IPAs registered remarkable increases in FDI applications with CDC posting the highest increase from last year’s PhP 4.2 billion to PhP 24.2 billion.  BOI came in close with investment pledges expanding from PhP 2.7 billion to PhP 12.6 billion.

Among the four IPAs, PEZA received the highest value of FDI applications comprising 47.1 percent or PhP 37.4 billion worth of investment pledges, followed by CDC at 30.5 percent.  BOI shared 15.8 percent while SBMA contributed 6.6 percent or PhP 5.2 billion.

2.   Top performing countries

2.1   Third Quarter 2010

Top prospective investing countries for the third quarter of 2010 include Japan, the Netherlands, and Switzerland.  Japan topped the list committing 33.2 percent of the total FDI applications for the quarter or PhP 6.3 billion.  The amount is 49.0 percent higher than the PhP 4.2 billion it pledged in the same period last year.  Majority of Japan’s commitments are intended to fund projects in manufacturing, a great portion of which would be in manufacture of electronic products.

Following closely at second and third posts are the Netherlands and Switzerland with pledges valued at PhP 5.6 billion and PhP 4.4 billion accounting for 29.4 percent and 22.9 percent, respectively.  Most of the investment pledges of the Netherlands would be in the electricity, gas and water while those of Switzerland would go to manufacturing.

Figure 1 - Total Approved FDI by Country of Investor
Third Quarter 2010

2.2   January to September 2010

Summing up all FDI commitments for the first nine months of 2010, Korea, Japan, and the Netherlands lead all other countries.   The hefty investments of PhP 24.5 billion pledged by Korea placed it at number one, with a share of 30.9 percent.  Japan followed closely with 21.6 percent share or PhP 17.1 billion worth of pledges.  At far third is the Netherlands contributing PhP 7.0 billion representing 8.8 percent of the FDI approved for the period.  All three countries registered significant increases in investment intentions compared to their year ago pledges.

Figure 2 Total Approved FDI by Country of Investor
January to September 2010

3.      Top performing industries

3.1   Third Quarter 2010

Manufacturing remained as top recipient of FDI commitments, and bested all other industries as it stands to receive PhP 12.0 billion, accounting for more than half or 63.4 percent of the total approved FDI for the quarter.  Electricity, gas and water came in second contributing 24.2 percent or PhP 4.6 billion. The rest of the investment pledges were shared by finance and real estate, accounting for 8.3 percent or PhP 1.6 billion; private services at 3.8 percent or PhP 0.7 billion.  Construction; trade; and transportation, communication and storage had a minimal share of 0.1 percent each to total approved FDIs

Increased investment pledges were recorded in all industries mentioned above except finance and real estate, and trade which posted double digit declines.

Table 2 Total Approved FDI by Industry
Third Quarter, 2009 and 2010
(in billion pesos)

Source:  BOI, CDC, PEZA, SBMA

3.2   January to September 2010

The large amount of investment commitments poured into the manufacturing industry in all three quarters of 2010 has placed manufacturing to the top post, receiving the highest pledges worth PhP 59.0 billion or 74.4 percent of total FDI during the period January to September 2010.  Trailing far behind is electricity, gas and water with investment pledges valued at PhP 8.4 billion, contributing 10.6 percent, followed by private services at PhP 6.2 billion representing 7.8 percent of the total approved foreign investments.

4.      Projected employment from approved FDI

4.1   Third Quarter 2010

FDI projects approved in the third quarter of 2010 are expected to generate a total of 21,154 jobs, expanding by 49.0 percent from last year’s projected employment of 14,198 jobs.

PEZA registered the highest projected employment at 18,666 jobs, accounting for 88.2 percent of the total for the quarter.  BOI-, CDC- and SBMA- approved projects are expected to generate 2,124, 266 and 98 jobs representing 10.0 percent, 1.3 percent and 0.5 percent, respectively, of the total for the period.

All IPAs except SBMA recorded increases in projected employment from FDI projects approved during the quarter.

4.2   January to September 2010

A total of 68,809 jobs are expected to be generated from the FDI projects approved in January to September 2010, up by 9.6 percent from last year’s projected employment of 62,800 jobs.

For all three quarters of 2010, PEZA consistently topped the IPAs in terms of projected employment from FDI projects, accounting for 82.5 percent or 56,773 new jobs.  The number is 7.6 percent higher than last year’s 52,893 jobs.

BOI-, CDC- and SBMA-approved projects trailed far behind contributing 9.5 percent or 6,569 jobs, 6.1 percent or  4,170 jobs, and 1.9 percent or  1,297 jobs, respectively.