The number of approved foreign investments improved in the final quarter of 2022 despite a looming global economic slowdown.

Data released by the Philippine Statistics Authority on Thursday showed approved foreign investments advanced 30.1% year-on-year to P173.61 billion during the October-December period.

Most of the investment commitments (64.2%) came from Singapore, which pledged P111.47 billion. Japan and United Kingdom committed P37.41 billion and P10.22 billion, respectively.

A global recession coming into full view continues to fog investors' lenses. While these pledges may or may not translate to actual inflows in the future, they serve as vital gauge of sentiment especially since investment decisions on this front are greatly affected by tax perks offered them.

They are also different from the central bank's own measure of FDI inflows, which is on a net basis and uses a threshold of at least 10% foreign equity to be included in the tally.

Foreign direct investments slumped in November, partly as a result of recession fears.

More than half of those foreign investment pledges, which amounted to P101.36 billion, will bankroll projects all over the country. Another P32.66 billion finance projects in Ilocos region, Calabarzon (Region IV-A) with P30.71 billion and P5.7 billion flowing through Central Luzon.

Data broken down showed that the information and communication sector will receive the lion's share of investment pledges totaling P114.29 billion in the fourth quarter. Projects in real estate attracted P35.57 billion in pledges while the manufacturing sector came in last, wooing P19.3 billion.

The PSA said that these investment commitments from local and foreign investors in the fourth quarter are projected to generate 37,766 jobs.

 

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