Total approved investments up ten-fold to P130.6B in 1st quarter

Total approved investments in the country reached P130.6 billion in the first quarter of the year, more than 10 times the P12.2 billion level in the same period last year, as both Filipino and foreign investors committed more funds for future ventures, the National Statistical Coordination Board (NSCB) reported.

The agency attributed the rise in investment approvals to a huge surge in foreign direct investments (FDIs), which zoomed to P115.4 billion from P6.3 billion worth of pledges in the same period of 2003.

This was the highest quarterly FDI turnout since the third quarter of 1997, confirming optimistic expectations from the business sector and dispelling perceptions on the possible adverse impact of the elections and security threats to the economy, the NSCB said.

The NSCB pointed out that the sudden increase in FDI commitments was due mainly to the large FDI application from the Republic of Nauru, the single biggest potential investment in years valued at P96.5 billion, mainly for the operation of a power plant in Bataan.

Japan and the US, the perennial leading FDI suppliers, trailed Nauru, posting P12 billion and P1.4 billion worth of pledges, respectively. Japan and the US were the top two sources of FDIs in 2003.

The energy and gas industry emerged as the top recipient of FDI prospects in the first quarter of 2004 with P96.5 billion worth of commitment from a single project alone, an enormous increase from the P1.8-billion FDI pledges in the first quarter of 2003.

The manufacturing industry, a traditional top gainer of FDIs until the last quarter of 2003, followed with substantial investment prospects amounting to P15.5 billion, which was more than five times the P2.7-billion worth of pledges last year. Most of the approved ventures in manufacturing were directed towards the production of information and communications technology (ICT) accessories, spare parts and equipment.

Investment commitments in ICT by Filipino nationals also increased, albeit slightly, from P3.5 billion in the first quarter of 2003 to P3.7 billion a year after.

Projected employment due to FDIs was estimated to grow by 17 percent, from 13,844 prospective jobs in the first quarter of 2003 to 16,200 jobs expected in the first quarter of 2004.

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