Direct foreign investments fall by 71.9% in Q1 of 2007

Direct foreign investments (DFIs) in the Philippines fell by 71.9 percent in the first quarter of 2007 from the amount recorded in the same period in 2006. According to a statement of the National Statistical Coordination Board (NSCB), the total approved FDIs in the said periods fell from P63.5 billion to just P17.9 billion. Japan put in the most FDIs, with at P6.9 billion, pledged mainly to the manufacturing sector, followed by the US with P4.3 billion, and the Netherlands, with P3.6 billion. "The first quarter saw a drop in investment pledges to the manufacturing sector, a robust growth for the private services sector, and a notable infusion of fresh investment pledges to the trade and mining sectors," the NSCB said. Although the pledges to the manufacturing sector fell in the quarter, it was still the top recipient to commitments with the lion's share of 70.1 percent or P12.5 billion of the total approved investments from foreign nationals during the quarter, amounting to P12.5 billion. Pledges to the manufacturing, the NSCB said, was kept afloat mainly by two projects approved by the Philippine Economic Zone Authority (PEZA), one dealing in vehicle transmission assemblies and the other in media recording heads. The pledges of the two projects total P8.9 billion, which is 71.4 percent of the FDIs pledged to the sector during the quarter, the NSCB said. Private sector services grew by 33.1 percent to P4.9 billion in the first quarter of 2007,with investments coming from commitments to operate call centers and business process outsourcing services. Foreign investors also made pledges to the trade industry at P126.8 million and mining industry with P104.3 million. - GMANews.TV