Total foreign direct investment (FDI)^a approved in the second quarter of 2011 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) tripled to PhP 40.6 billion from PhP 13.8 billion recorded in the same period last year. Meanwhile, total approved FDI for teh first six months of 2011 reached PhP 62.6 billion up by 3.5 percent from last year's PhP 60.5.

Japan topped all other countries with investment pledges of PhP 17.5 billion, majority of which would be in tire manufacturing. The Japanese committed invested which accounts for 43.2 percent of the total FDI during the quarter is almost twenty seven times the PhP 0.7 billion committed in the same period last year. Joining Japan as top sources of FDI are the United States of America (USA) with a share of PhP 8.2 billion or 20.3 percent, and teh Netherlands with pledges og PhP 7.2 billion or 17.7 percent.

Manufacturing remained as top recipient of FDI commitments as it stands to receive PhP 26.4 billion. Trailing far behind are real estate activities, and electricity, gas, steam and air conditioning at PhP 5.2 billion, and PhP 4.8 billion, respectively.

While FDI increased in Q2 2011, the total approved investments of foreign and Filipino nationals declined by 8.5 percent from last year's PhP 172.6 billion to PhP 158.0 billion. However, despite the reduction in tehir commitments, Filipino nationals continued to account for the bulk of the investments approved during the quarter with PhP 117.4 billion worth of pledges or a share of 74.3 percent. Majority of investments committed by Filipinos are intended to finance activities in electricity, gas, steam and air conditioning supply, particularly coal-fired power plant.

Source: BOI, CDC, PEZA, SBMA

Foreign and Filipino ventures approved by the four major IPAs in Q2 2011 are expected to create 52,604 jobs, increasing by 81.4 percent from last year's projected employment of 29, 004 jobs. Out of these anticipated jobs, 40,556 new jobs or 77.1 percent would come from projects with foreign interest.

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• Approved FDI represent the amount of proposed contribution or share of foreigners to various projects in the country as approved and registered by the IPAs. This consists of equity loans and reinvested earnings.