Foreign direct investments up 40% in H1

Foreign direct investments surged by 40 percent to P31.4 billion in the first half of the year from P22.4 billion in the same period last year, the Department of Trade and Industry (DTI) reported yesterday.

The DTI said the bulk of foreign capital inflows during the six-month period came from Taiwanese and Japanese investors with P12 billion and P10.5 billion, respectively.

The DTI said most of the inflows came during the second quarter of the year.

Capital inflows from Taiwanese and Japanese businessmen accounted for almost 80 percent of the P26.3 billion investments approved between April and June this year.

However, the DTI noted that the investments made this year by the Japanese investors were 20 percent lower than last year’s inflow of P13 billion.

Trade and Industry Secretary Manuel Roxas II said that Japan has made substantial investments into Asean, accounting for 18.4 percent of total direct investments last year.

"We will just have to ensure that we remain competitive with our Asian neighbors," Roxas said.

On the other hand, local investors pumped in P28.3 billion in the first half, or 21 percent lower than the P35.9 billion approved during the same period last year.

Foreign inflows were invested in various special economic zone of the Philippine Economic Zone Authority, the Clark Development Corp. and the Subic Bay Metropolitan Authority.

The DTI said these investments are expected to generate a total of 74,810 jobs, 85 percent higher than last year’s 46,346 jobs.