By Leslie Gatpolintan/ PNA
MANILA — Approved foreign investment (FI) commitments surged 69.3 percent to PHP179 billion in 2018 from PHP105.7 billion the previous year, as the country’s strong economic fundamentals continued to attract investors from beyond Philippine shores.
The Philippine Statistics Authority (PSA) on Thursday reported that total approved foreign investments also increased by a whopping 322 percent in the fourth quarter last year to PHP91.2 billion from PHP21.6 billion during the same period in 2017.
China committed PHP48 billion, or 52.6 percent of the total approved investments during the quarter.
Singapore and Japan pledged PHP15.3 billion and PHP4.8 billion, or 16.7 percent and 5.2 percent of the total approved foreign investments, respectively.
Socioeconomic Planning Secretary Ernesto Pernia said some firms are shifting from China, the United States, and United Kingdom to the Philippines.
“(The) Philippines has been touted in international media as among top investment destinations, given strong fundamentals and growth, decisive leadership, BBB (‘Build, Build, Build) program, many reforms in place,” he said in a text message to reporters.
“(Higher foreign investment pledges) also shows TRAIN (Tax Reform for Acceleration and Inclusion) 2 incentives rationalization not a turn-off (for investors),” he added.
The second package of the tax reform package seeks to lower corporate income tax rates and rationalize fiscal investment incentives.
The PSA further said that manufacturing would receive the largest amount of foreign investments approved in the last quarter of 2018 with PHP58.8 billion, or a 64.5-percent share.
By region, majority of the approved foreign investments in the fourth quarter of 2018 would be intended to finance projects in the Northern Mindanao region, amounting to PHP47.5 billion, or 52.1 percent.
The Calabarzon region, comprising Cavite, Laguna, Batangas, Rizal and Quezon, would receive the second highest amount at PHP20.3 billion, representing 22.3 percent. This was followed by the National Capital Region at PHP13.1 billion or 14.3 percent.
