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PART ITable A

Table B

Table C

Table D

Table E

Table F

PART IITable 1a

Table 1b

Table 2a

Table 2b

Table 3a

Table 3b

Table 4a

Table 4b

Table 5a

Table 5b

Table 6a

Table 6b

Table 7a

LIST OF TABLES

Total Approved Foreign Direct Investments by Investment Pro' otion AgencySecond Quarter, 2008 and 2009

Total Approved Foreign Direct Investments by IndustrySecond Quarter, 2008 and 2009

Total Approved Investments by Foreign and Filipino Nationalsby Investment Promotion Agency, Second Quarter, 2008 and 009

Projected Employment from Total Approved Investments, by I ,dustrySecond Quarter, 2008 and 2009

Total Approved Investments in Information and Communicatio s Technology (ICT)by Foreign and Filipino Nationals, Second Quarter, 2008 and '2009

1

Projected Employment from Approved Investments in ICT, by I T Sub-industrySecond Quarter, 2008 and 2009

Total Approved Foreign Direct Investments by Promotion Age cyFirst Quarter 2008 to Second Quarter 2009

Total Approved Foreign Direct Investments by Promotion Age cyJanuary to June, 2008 and 2009

Total Approved Foreign Direct Investments by Country of Inve, torFirst Quarter 2008 to Second Quarter 2009

Total Approved Foreign Direct Investments by Country of Inve torJanuary to June, 2008 and 2009

Total Approved Foreign Direct Investments by IndustryFirst Quarter 2008 to Second Quarter 2009

Total Approved Foreign Direct Investments by IndustryJanuary to June, 2008 and 2009

Projected Employment on Approved Projects with Foreign Inte estFirst Quarter 2008 to Second Quarter 2009

Projected Employment on Approved Projects with Foreign Inte estJanuary to June, 2008 and 2009

Total Approved Investments by Promotion AgencyFirst Quarter 2008 to Second Quarter 2009

Total Approved Investments by Promotion AgencyJanuary to June, 2008 and 2009

Total Approved Investments by Nationality (Filipino and Foreig )and by Promotion Agency, First Quarter 2008 to Second Quart r 2009

Total Approved Investments by Nationality (Filipino and Foreigand by Promotion Agency, January to June, 2008 and 2009

Total Approved Investments (Foreign and Filipino) by IndustryFirst Quarter 2008 to Second Quarter 2009

Page

4

6

9

11

11

13

15

16

17

18

19

20

21

22

23

24

25

26

27

Table 7b

Table 8a

Table 8b

Table 9a

Table 9b

Table 10a

Table 10b

Table11a

Table 11b

Table 12a

Table 13a

Table 13b

Table 14a

Total Approved Investments (Foreign and Filipino) by IndustJanuary to June, 2008 and 2009

Projected Employment on Approved InvestmentsFirst Quarter 2008 to Second Quarter 2009

Projected Empioyment on Approved InvestmentsJanuary to June, 2008 and 2009

Total Approved Investments in the Information and Communi ation Technology(ICT) Industry by Promotion Agency, First Quarter 2008 to Se ond Quarter 2009

Total Approved Investments in the Information and Communi tion Technology(lCT) Industry by Promotion Agency, January to June, 2008 a d 2009

Total Approved FDls in the Information and Communication T chnology (lCT)and Non-ICT Industry by IPA, First Quarter 2008 to Second Q arter 2009

Total Approved FDls in the Information and Communication T chnology (lCT)and Non-ICT Industry by IPA, January to June, 2008 and 2009'

Total Approved Investments in the Information and Communi tion Technology (lCT)Industry by Sub-Industry, First Quarter 2008 to Second Quart r 2009

Total Approved Investments in the Information and Communic tion Technology (lCT)Industry by Sub-Industry, January to June, 2008 and 2009

Projected Employment on Approved Investments in the Inform tion and CommunicationTechnology (lCT) by Sub-Industry, First Quarter 2008 to Seco d Quarter 2009

Balance of Payments Foreign Direct Investments (in million P os)First Quarter 2008 to Second Quarter 2009

Balance of Payments Foreign Direct Investments (in million Pe os)January to June, 2008 and 2009

Balance of Payments Foreign Direct Investments (in million USFirst Quarter 2008 to Second Quarter 2009

28

29

29

30

30

31

31

32

32

33

34

35

36

PART IFigure 1a

Figure 1b

Figure 2a

Figure 2b

Figure 3a

Figure 4a

Figure 7a

LIST OF FIGURES

Total Approved Foreign Direct InvestmentsSecond Quarter, 2008 and 2009

Total Approved Foreign Direct InvestmentsJanuary to June, 2008 and 2009

Total Approved Foreign Direct Investments by Country of Inves orSecond Quarter 2009

Total Approved Foreign Direct Investments by Country of Invest rJanuary to June 2009

Total Approved Foreign Direct Investments by IndustrySecond Quarter 2009

Total Approved Investments by Foreign and Filipino NationalsSecond Quarter, 2008 and 2009

Total Approved Investments by IndustrySecond Quarter 2009

Page

1&3

1 & 3

5

5

6

8

9

Figure 13b Balance of Payments, FDI in million PhPJanuary to June, 2008 and 2009

14

PART IIFigure 1a

Figure 1b

Figure 2a

Figure 2b

Figure 3a

Figure 3b

Figure 4a

Figure 4b

Figure 5a

Figure 5b

Total Approved Foreign Direct InvestmentsSecond Quarter, 2008 and 2009

Total Approved Foreign Direct InvestmentsJanuary to June, 2008 and 2009

Total Approved Foreign Direct Investments by Country of InvestoSecond Quarter 2009

Total Approved Foreign Direct Investments by Country of InvestoJanuary to June 2009

Total Approved Foreign Direct Investments by IndustrySecond Quarter 2009

Total Approved Foreign Direct Investments by IndustryJanuary to June 2009

Projected EmploymentSecond Quarter, 2008 and 2009

Projected EmploymentJanuary to June, 2008 and 2009

Total Approved Investments by Foreign and Filipino NationalsSecond Quarter, 2008 and 2009

Total Approved Investments by Foreign and Filipino NationalsJanuary to June, 2008 and 2009

15

16

17

18

19

20

21

22

23

24

Figure 6a Percent Share of Total Approved Investments by Foreign and F'lipino 25Nationals, Second Quarter, 2008 and 2009

Figure 6b Percent Share of Total Approved Investments by Foreign and F lipino 26Nationals, January to June, 2008 and 2009

Figure 7a Total Approved Investments by Industry 27Second Quarter 2009

Figure 7b Total Approved Investments by Industry 28January to June 2009

Figure 13a Balance of Payments, FDI in million PhP 34Second Quarter, 2008 and 2009

Figure 13b Balance of Payments, FDI in million PhP 35January to June, 2008 and 2009

Figure 14a Balance of Payments, FDI in million US$ 36Second Quarter, 2008 and 2009

Figure 14b Balance of Payments, FDI in million US$ 37January to June, 2008 and 2009

Foreign Direct Investments in the Phi ippinesSecond Quarter and First Semeste' 2009

Summary

Total approved FDI (Q2 and First Semester 2009, levels and growth rates)

Total approved foreign direct investments (FDI) in the second qua~er of 2009 remained low atPhP 19.9 billion, posting a significant deciine of 73.0 percent from RhP 73.9 billion in the samequarter last year. Meanwhile, the combined approved FDI in th first and second quarterstotaled to only to PhP 23.9 billion, a reduction of 74.7 percent fro PhP 94.6 billion worth ofinvestments approved in the first semester of 2008 (Figures 1a a d 1b below and Part IITables 1a and 1b).

Korea and Hong Kong were the leading sources of approved FDI, ccounting for 25.6 percentor PhP 5.1 billion, and 19.0 percent or PhP 3.8 billion, respectivel . The first half of the yearlikewise saw big contributions from the two countries with 22.7 per ent of total FDI or PhP 5.4billion coming from Korea, and 16.1 percent or PhP 3.9 billion, from ong Kong (Part 11- Tables2a and 2b).

40.0

20.023.9

- -----------Figur 1b

Total APPtrlOVedFDI .5em1 2008 an 5em1 2009

100.0 94.

80.0

60.0

40.0

20.0

"'oi;1Coc:.2:cc:

19.9

Figure 1aTotal Approved FDIQ2 2008 and Q2 2009

73.9

0.0

80.0

"'oi;1 60.0Coc:.2:cc:

Q22008 Q22009 5120 8 512009

Majority of FDI commitments were intended to fund projects in finprivate services registering a combined share of 71.2 percent in thpercent in first semester of 2009 (Part II - Tables 3a and 3b).

nee and real estate, andsecond quarter, and 69.7

About this reportThis report is the forty eight of a series on quarterly statistics on foreign direct investments(FOI) in the Philippines. integrating the quarterly statistical reports on FDI submitted by thegovernment's investments promotion, administration and regulation agencies. It provides ananalysis of the"

(a) Foreign direct investments and investments by Filipinos approved by the Board ofInvestments (BOI), Philippine Economic Zone Authority (PEZA), Clark DevelopmentCorporation (CDC), and Subic Bay Metropolitan Authority (SBMA) for the firstquarter of 2008 to the second quarter of 2009;

(b) Actual foreign direct investments as presented in the Balance of Payments (BOP)by the Department of Economic Statistics of the Bangko Sentral ng Pilipinas (BSP)for the first quarter of 2008 to April and May of 2009.

Annex A presents the technical notes on the data and compilation methodology while Annex Bgives a brief background on the Foreign investment Information System (FilS) that generatesthe FDI statistics presented in thiS report.

InsidePart I - Analysis

A. App oved foreign directinve tments.. . 3107

8. App oved investments by Filipinoand oreignnationals 8t011

C. App oved investments in theInfo ation and CommunicationsTee nology 11 to 13

D. Actu I foreign direct inveslmentsin Ih Balance of Payments 13 to 14

Part 1/ Statistical Tabies

Annex 5

Foreign Direct nvestments, 02 2009

Combined approved investments of foreign and Filipino ationals (02 and FirstSemester 2009, levels and growth rates)

The combined approved investments of Filipino and foreign nation Is in the second quarter of2009 totaled PhP 67.4 billion, 73.4 percent lower than the PhP 253.0 billion registered in thesame period last year (Part II - Table 6a). Pledges from Filipino n1ationalsstood at PhP 47.4billion which accounted for 70.4 percent of the total approved investments in the quarter.

IFor the first semester, the combined approved investments of Filipino and foreign nationalsamounted to PhP 86.8 billion, about one-third of its year ago level of PhP 293.1 billion (Part 11_Table 6b).

Approved investments in Information and Communication Tech ology (ICT)

The impressive growth of investment commitments in inform tion and communicationstechnology (ICT) by both Filipino and foreign nationals during the q arter, from PhP 2.0 billionto P6.5 billion was not enough to compensate the weak perfo ance of total approvedinvestments (Part II - Table 9a). ICT shared 9.6 percent of total in estments approved duringthe quarter.

Almost all (98.3 percent) investments intended for ICT amounting t PhP 6.4 billion came fromforeign nationals. A large chunk of these investments were coursed trough PEZA.

Proposed investments in ICT for the first six months of 2009 t taled to PhP 9.0 billion,expanding by 19.7 percent from PhP 7.5 billion in the same period la t year.

Projected Employment on Approved Investments

Total projects approved by the four IPAs for the second quarter are expected to create 34,216jobs, lower by 62.0 percent than last year's projected employment 0 90,155 jobs. Out of thesetotal expected jobs, 29,006 jobs would come from investments ith foreign interest, 25.8percent lower from last year's 39,117 projected jobs (Part II - Tables a & 8a).

For the first half of 2009, projected employment on approved invest ent commitments declinedby 54.1 percent from last year's 131,545 jobs to 60,322 while those f r investments with foreigninterest also dropped, from 66,896 expected jobs in the first six mon hs of 2008 to only 48,602expected jObs this year.

Foreign direct investments in the Balance of Payments (BOP)

Actual FDI in the BOP for April to June of 2009 showed signs of ecovery as it grew 121.2percent compared to the same period in 2008, from US$386.0 mill on to US$854.0 million in2009. For the first six months of 2009, net FDI inflows reached U $892.0 million, nearly 50percent higher than the net inflow of US$605 million recorded duri g the same period a yearago (Part 11- Tables 14a and 14b).

2

Foreign Dire t Investments, Q2 2009

Part I - ANALYSIS

A. Approved foreign direct investments (FOI)

1. Total approved FDI (levels and growth)

1.1 Second Quarter 2009

FDI applications received and approved in the second quarter of 2009 by the four major IPAs,namely: Board of Investments (BOI), Philippine Economic Z ne Authority (PEZA), ClarkDevelopment Corporation (CDC), and Subic Bay Metropolitan A~thority (SBMA) amounted toPhP 19.9 billion, falling by 73.0 percent from its year-ago level of PhP 73.9 billion (Figure 1abelow and Part" - Table 1a).

. -----------------Figure 1a

Total Approved FOIQ2 2008 and 02 2009

80.070.0

~ 60.0Q.C 50.0,g 40.0 .~ 30.0 .c 20.0

10.00.0

73.9

022008

~._. --- --------------

19.9

022009

1.2 January to June 2009

In the first semester of 2009, FOI applications received and appr ved by the four major IPAstotaled PhP 23.9 billion, dropping by 74.7 percent compared to th same period of last year'slevel of PhP 94.6 billion (Figure 1b and Part" - Table 1b).

-_ ..- ---- ... - .-_._---_._--------Figure 1b

Total Approved ForSem1 2008 and Sem1 2009

100.0

'" 80.0~Q.

C 60.000=

40.0.cc 20.0

94.6."'~ .'--;::.,~''1:r~'';' .•_.'.:'.~<.., I'"-~!~.tt..

.1.~-,f"

S1 2008

23.9

S1 2009

3

Foreign Direct nvestments, Q2 2009

2. FOI by investment promotion agency (IPA)


For the second quarter of 2009, CDC recorded the largest increas in FDI approvals, which is38.8 percent higher than its level during the same period in 2008' CDC's share to total FDIapprovals, however, is the second smallest among the IPAs, confributing only 12.3 percent,which is equivalent to PhP 2.4 billiOn worth of committed investm~nts from foreign nationals.BOI, on the other hand, registered the largest decline of 95,9 perce t and contributed only PhP2.2 billiOnworth of pledges, accounting for 10.8 percent of the total pproved FDI for the period.PEZA contributed the largest share of 63.6 percent, which is eq ivalent to PhP 12.7 billionworth of commitments while SBMA came in far second at 13.3 percent share to total FDIinvestments for the period (Table A below and Part 11- Table 1a).

Table ATotal Approved FOI by Investment Promotion Agency

(in billion pesos)SecondQuarter,2008and 2009

Approved FOr Percent to Growth RateAgency Q22008 Q22009 Total Q22009 2 2008-Q22009BOI 52.3 2.2 10.9 (95.9)PEZA 11.8 12.7 63.6 7.0SBMA 8.0 2.6 13.3 (66.7)CDC 1.8 2.4 12.3 38.8Total 73.9 19.9 100.0 (73.0)Notes:

Details may not add up to totals due to rounding.Sources of basic data: Board of Investments (80r), Philippine Economic Zone uthority (PEZA),Subic Bay Metropolitan Aurhority (SBMA) and Clark Development Corporation (CDC).


On a semestral basis, total approved FDI declined substantially by 7 .7 percent from PhP 94.6billion in the first semester 2008 to only PhP 23.9 billion in 2009 in accoUnt of the decline ofthree of the four IPAs. Only CDC posted increase in investment ap rovals for the first half of2009, expanding its 2008 level by 28.9 percent, which amounts to PhP 2.5 billion worth ofcommitments. Notwithstanding, CDC's share constituted only 1 .5 percent of the totalinvestments for the first semester of 2009.

BOI, SBMA and PEZA, suffered setbacks as FDI applications course through them registereddouble digit declines of 95.1 percent, 69.1 percent and 48.6 percen , respectively, from their2008 levels for the same period. PEZA, which had the highest shar among the four IPAs at67.3 percent, dropped to just PhP 16.1 billion this semester compare to PhP 31.3 billion in thefirst semester of 2008 (Part II - Table 1b).

3. Top performing countries (levels and share)

3.1 SeCond Quarter 2009

Korea bested all other countries in FDI intentions committing about 25. percent of the total FDIapplications or PhP 5.1 billion for the second quarter of 2009. While K rea topped this quarter'sFDI commitments, this amount was lower by 76.1 percent compared to its commitment in thesame period of 2008 (Figure 2a below and Part II - Table 2a).

4


Following closely are Hong Kong and Japan with pledges represe I ting 19.0 percent and 12.8percent, respectively, of the total FOI applications for the quarter., Hong Kong commitments,which landed in the top three biggest FOI intentions for the first time since the third quarter of2000, soared to PhP 3.8 billion from its level of PhP 142.2 million in 'he second quarter of 2008.These were intended to fund projects in finance and real estate iridustry. On the other hand,Japan registered an increase of 11.9 percent from investment pledg~s valued at PhP 2.3 billionin the 02 2008 to PhP 2.6 billion in 02 2009, mostly intend$d to finance projects formanufacturing and finance and real estate industries.

Figure 2aTotal Approved FDls by Country of Investor

Second Quarter 2009

-;,

PROC Netherlands1.5% 5.0%

Korea25.6%

USA12.3%

Switzerland3.6%

Singapore. 0.7%

UK10.1%

Others3.3%

Australia1.3%

British Virgin Is4.1% Germ ny

0.10 Hong Kong19.0% ,

Japan12.8%


Summing up all FOI commitments for the first and second quarter of 009, Korea is still on top,committing about PhP 5.4 billion or 22.7 percent of the total FOI ap Iications for the semester.This is, however, 82.2 percent lower compared to its PhP 30.5 billion1level in the first semesterof 2008 (Figure 2b below and Part II - Table 2b).

Not far behind are Hong Kong and Japan at second and third plac s with pledges valued atPhP 3.9 billion and PhP 3.4 billion accounting for 16.1 percent and 4.1 percent, respectively,of total approved FOls for the semester. Whereas Hong Kong recor d a remarkable increaseof twenty times its level in the first semester of 2008 at PhP 183.7 mi lion, Japan's commitmentdropped by 34.1 percent in comparison with its commitment in the sa e period last year.

-._----------- ---~- ---- - - ._---_.Figure 2b

Total Approved FDls by Country of InvestorFirst: Semester, 2009

Switzerland3.0%

Singapore0.9%

PROC1.4%

USA13.5%

UK9.2%

Others5.3%

Australia1.8%

Briti h Virgin Is.5%Gennany0.3%

Hong Kong16.1%

Netherlands7.7% Korea

22.7%

apan4.1%

--------- -------- ------

5

Foreign Direct nvestments, 02 2009

4. Top performing industries (levels and share)


Finance and real estate and private services are the top two recipi nts of FOI commitments asthese industries received 38.1 percent and 33.1 percent of the tbtal approved FOls for thesecond quarter of 2009 or PhP 7.6 billion and PhP 6.6 billion worth df investments, respectively.Commitments in finance and real estate quadrupled during the peliOd, from PhP 1.9 billion in2008 to PhP 7.6 billion in 2009. Private services receipt. on the other hand. was a 53.2 percentdrop against the same quarter of 2008. (Table B and Figure 3a beloWand Part II - Table 3a).

Table BTotal Approved FDI by Industry (in billion peso

Second Quarter, 2008 and 2009Approved FOI Percent to Gro h RateIndustry Q22008 Q22009 Total Q22009 Q2 20 8-Q2 2009

Agriculture 0.0Communication 0.1Construction 0.0Education 0.0Electricity 41.0 1.9 9.5 (95.4)Finance & Real E 1.9 7.6 38.1 304.2Manufacturing 12.2 3.8 19.1 (68.8)Mining 3.1Private Services 14.1 6.6 33.1 (53.2)Storage 0.0Trade 0.1 0.0 0.1 (53.3)Transportation 1.4 0.0 0.0 (99.7)Total 73.9 19.9 100.0 (73.0)Noles:

Details may not add up to Iota Is due to rounding.

Sources of basic data: Board of Investments (BOl), Philippine Economic Zone Aulhori (PEZA).Subic Bay Metropolitan Aurhority (SBMA) and Clark Development Corporation (CDC).

Figure 3aTotalApproved FOlsby Industry

Second Quarter 2009

Manufacturing19.1%

Finance & RealEstate38.1%

Private Services33.1%

Electridty9.5%

T ade01%

Tra nsportation0,0%

Education0.0%

6



Looking at the totals of the first six months of 2009, private se ices received the highestpledges with 37.2 percent share in the total FDI commitments. Fo lowing closely was financeand reai estate with a share of 32.5 percent of the total FDI commi ents for the first half of theyear. Manufacturing sector landed third place with 21.5 percent shar of the total.

5. Projected employment from IPA. approved FDI


A total of 29,006 jobs are expected to be generated from the FDI projects approved in thesecond quarter of 2009, down by 25.8 percent from last year's proje~ted employment of 39,117jobs (Part 11- Table 4a).

Majority or 84.0 percent of the projected employment would come f om FDI projects approvedby PEZA, which is equivalent to 24,376 prospective jobs. This is 5 .1 percent higher than lastyear's 16,243 potential jobs from commitments approved by PEZA.

Although potential employment from SBMA-approved FDI projects almost tripled during thequarter compared to its year-ago level, it landed only second Place,ipoSting 2,342 prospectivejobs or 8.1 percent share of the total projected employment for the quarter.

The remaining 7.9 percent of the projected employment is shared dy BOI and CDC, with BOIsharing 5.8 percent or 1,677 jobs and CDC contributing only 2.1 pe cent to the total projectedemployment or 611 jobs. (Part II Table 4a)


Projected employment on approved FDI commitments in the first hal of 2009 declined by 27.3percent from last year's level of 66,896 jobs. Of the projects appr ved from four IPAs, onlyPEZA-approved FDI projects posted an increase in projected emplo ment at 4.1 percent, fromits last year's level of 38,596 potential jobs to 40,176 potential jobs from 02 2009 FDIinvestments.

In terms of share, approved FDI projects from PEZA accounted for the bulk of the totalprojected employment for the first semester of 2009 at 82.7 per en!. BOI-approved FDIcommitments shared 9.2 percent or 4,450 prospective jobs of the t tal projected employmentfor the period, 77.5 percent lower than its level last year. Investm nts with foreign interestapproved by SBMA are expected to create 2,742 jobs, 11.9 perce t lower compared to thesame semester in 2008. (Part II - Table 4b).

7

Foreign Direct I vestments, Q2 2009

B. Approved investments by foreign and Filipino nationals

1. Total approved investments by foreign and Filipino national~I1.1 Second Quarter 2009 I

The combined investment commitments of foreign and Filipino in estors reached PhP 6704billion in the second quarter of 2009, dropping by 51.5 percent fro PhP 253.0 billion in thesame period in 2008. (Figure 4a below and Part 11- Table Sa).

Of the PhP 6704 billion worth of investment pledges, 7004 percent or PhP 4704 billion wouldcome from Filipino nationals. Prospective ventures from Filipino nationals shrunk by 73.5percent from its year ago level of PhP 179.1 billion. (Figure 4a below and Part II - Table 6a).

Figure 4aTotal Approved Investments by Foreign and Filipino ationals:

Second Quarter, 2008and 2009._-------- - - --------~~~-

Total Approved InvestmentsQ22008and Q2 2009

• Filipinoo Foreign

A47.419.9

- -_.

Q22009Q22008

Total Approve InvestmentsQ22008a d Q2 2009

300.0250.0

200.0 '150.0100.050.0

1/1-0'1/1

"C.c:o

.:5c:

67.4

Q22009

-. ,; .. ,':;

253.0

Q22008

300.02 250.0~ 200.0 ..~ 150.0 ..:g 100.0 -.:: 50.0

0.0 -


Investment commitments from both foreign and Filipino nationals dec ined by 74.7 percent fromPhP 293.1 billion to PhP 86.8 billion during the first six months of 009 (part II - Table 6b).This is largely due to the decrease in FDI investments committed th u BOI, PEZA and SBMAduring the period under review. Filipino investors who put in 72.5 p rcent or PhP 62.9 billiondominated investment commitments pledged in January to June 2009

2. Total approved investments by IPAs


Almost all (91.6 percent) of foreign and Filipino investments approve during the quarter werecoursed through BOI and PEZA. BOI received investment pled es at PhP 36.8 billion,accounting for 54.5 percent of the potential investments in the count while PEZA contributed37.0 percent or PhP 24.9 billion (Table C below).

SBMA and CDC did not get as much investments as BOI and PEZA. Of the total investmentsapproved in the second quarter of 2009, SBMA put in PhP 2.9 billion om PhP 8.2 billion in thesame period last year. CDC on the other hand posted an increas of received investmentpledges to PhP 2.8 billion from PhP 1.8 billion last year.

8

Foreign Direct r vestments, Q2 2009

Table CTotal Approved Investments by Foreign and Filipinb Nationals

by Investment Promotion Agency (in billion p~sos)Second Quarter, 2008 and 2009

Q22008 Q22009 Growth RateAgency Q 2008• Q2 2009

Foreiqn Filicino Total Foreien Filipino Total Forei(h Filipino TotalBOI 52.3 164.9 217.2 2.2 34.6 36.8 (95. ) (79.0) (83.1)PEZA 11.8 140 25.8 12.7 12.3 24.9 7. (12.1) (3.3)SBMA 8.0 0.2 8.2 2.6 0.2 2.9 (66. ) 21.0 (64.6)CDC 1.8 0.0 1.8 2A OA 2.8 38. 683.5 54.9Total 73.9 179.1 253.0 19.9 47.4 67.4 (73. I) (73.5) (73.4)% Share to Total 29.2 70.8 100.0 29.1; 70.4 100.0Notes:

Details may not add up 10totals due to rounding

Sources of basic data: Board of Investments (BOI), Philippine Economic Zone Authority (PEZA),Subic Bay Metropolitan Aurhority (SBMA) and Clart Development Corporation (CDC).


Of the total potential investments in the country, 47.3 percent r PhP 41.1 billion wereregistered through BOI (Part II - Table 5b). However, investment pie ges coursed through BOIfor the period notably declined by 82.0 percent from PhP 228.3 I illion posted a year ago.PEZA, which shared 44.5 percent and SBMA, 4.8 percent to the to al approved investments,also experienced double-digit declines at 27.9 percent and 54.3 percent, respectively.

The only growth was observed in the investments committed t rough CDC which roseremarkably by 39.8 percent from its 2008 level of PhP 2.1 billion to P P 2.9 billion, although itscontribution is only 3.4 percent of the total investment proposals.

3. Total approved investments by industry


Of the PhP 67.4 billion investment pledges, 43.2 percent or PhP 29.1 billion comes fromelectricity industry while finance and real estate shares 35.4 percent 0 PhP 23.9 billion worth ofinvestments. Private services, manufacturing, transportation, trade, ec ucation, construction andhealth industries shared 21.4 percent to total approved investments of the quarter (Figure 7abelow and Part II - Table 7a).

Figure 7aTotal Approved Investments by Industry

Second Quarter 2009

Manufacturing6.8%

Construction0.0%

Health0.0% ""\

Electricity _43.2%

Private S I'\oices12.4 0

~

~. ",T,rade-- -0.5%

~ __ Edu atianO. %

_Transportat on1.6%


9



Of the total potential investments for the first six months of 20 9, finance and real estateindustry received the largest share at 41.5 percent or PhP 36.0 iIlion followed by electricityindustry which obtained 33.7 percent or PhP 29.2 billion worth of nvestment pledges. Privateservices, manufacturing, trade, transportation, health, mining, educ tion and construction jointlyaccounted for 24.8 percent of the investments registered by both f reign and Filipino investorsfrom January to June 2009 (Part II - Table 7b).

4. Projected employment from IPA-approved investments


Projects approved by the four IPAs for the period are expected to c eate 34,216 jobs, lower by62.0 percent than last year's projected employment of 90,155 jobs ( art 11- Table 8a).

PEZA registered the highest projected employment during the pe iod at 25,597 jobs or 74.8percent of the totai for the quarter. SOI-, SSMA- and COC-approv d projects are expected togenerate 5,122 jobs, 2,795 jobs and 702 jobs accounting for 15.0 p rcent, 8.2 percent and 2.1percent, respectively of the total for the period.

4,2 January to June 2009

Projects approved from the combined foreign and Filipino investor in the first six months of2009 are expected to generate 60,322 new jabs, 54.1 percent low r than the number of jobsposted in the same period in 2008 (Part II - Table 8b). Project registered through PEZAposted the highest projected employment at 41,977 potential job, and contributed aimostseventy percent (69.6 percent) of the total projected employment fa the period. SOi-approvedprojects recorded 13,556 potential jobs sharing about 22.5 percen. SSMA and CDC jointlyshared 7.9 percent or 4,789 prospective jobs.

5. Projected employment by industry


Of the 34,216 new jobs expected from total approved investments uring the second quarter2009,45.7 percent or 15,639 jobs would be in the private services i dustry. Finance and realestate and manufacturing stands to supply 29.9 percent or 10,227 jobs and 21.0 percent or7,169 jobs respectively while construction, education, electri ity, health, trade andtransportation would be sharing a combined 3.5 percent of the t al projected employment(Table 0 below).

10


Table 0Projected Employment on Approved Investments, by Indus ry

Second Quarter, 2008and 2009ereen a

!row a e

Industry Q22008 Q22009 Total Q22009 2 2008.Q22009

Agriculture 468Communication 139Construction 88 50 0.1 (43.2)Education 59 0.2Electricity 1.481 678 2.0 (54.2)Finance & Real Estate 43,961 10,227 29,9 (76.7)Health 25 0.1Manufacturing 16,822 7,169 21.0 (57,4)Mining 4.473Private Services 20,842 15,639 45.7 (25.0)Storage 33Trade 84 165 0.5 96,4Transportation 1,764 204 0.6 (88,4)Total 90,155 34,216 100.0 (62.0)a es:

Details may not add up to totals due to roundingSources of basic data. Board of Investments (BOI), Philippine Economic Zone Authority (PEZA),

::lublc Bay Metropolitan Aurhonty (SBMA) and Clark Development Corporation (CDC)


Out of the 60,322 potential jobs to be generated from total approved nvestments in the first twoquarters of 2009, the private services, manufacturing and finance and real estate industriesstand to get the lion's shares of labor at 49,9 percent, 26,5 p~rcent and 20.B percent,respectively (Part II - Table Bb). The rest of the potential jobs wi I be shared by electricity,transportation, trade, construction, education, health, and mining indl stries,

C. Approved investments in the Information and Communi(:ations Technology(ICT) Industry

1. Total approved investments in leT (levels, groW1h and sh reI


After four quarters of continuous decline, committed investments int nded for the ICT industryrebounded, 9rowin9 by 220.9 percent from PhP 2,0 billion a year a~ a to PhP 6.5 billion in Q22009 (Table E below and Part II - Table 9a). Almost all potenti I investments in the ICTindustry (9B.3 percent) came from foreign investors with PhP 6,4 bil ion, 246.6 percent higherthan the PhP 1.B billion in Q2 200B, Filipino investors' commitmen s, however, continued toslacken, posting a 40.1 percent decline in Q2 2009 compared to the s me period last year.

Table EApproved Investments in ICT, by Foreign and Filipino Na ionals

Second Quarter, 2008and 2009(in billion pesos)

Nationality Q22008 Q22009 Percent to Total Growth Rate

Foreign 1.8 6.4 98,3 246.6Filipino 0,2 0.1 1.7 (40.1)Total 2.0 6.5 100.0 220,9~Ni::ot::e::,,:':"----------':;';;;"'--"';;';';;"----"';';;';;';';;"'-+---;;;;;;;';';~

Details may not add up to totals due to rounding.

Sources of basic data: Board of Investments (BOI), Philippine Economic Zone Authority (PEZA),Subic Bay Metropolitan Aurhorily (SBMA) and Clark Development Corporation (CDC.

11



With the impressive performance in the second quarter of 2009, c mmitted investments in theICT industry improved in the first six months of 2009 as it grew to P P 9.0 billion, from PhP 7.5billion in 2008, representing an increase of 19.7 percent (Part /I - T ble 9b). This increase wasdriven by the 41.2 percent expansion in proposals from foreign nati nals in ICT during the firsthalf of the year, three-fourths of which came in the second quarter. otentlal investments in ICTwith foreign interests account for 94.9 percent of the total approved I vestments for the sector.

2. Total approved investments in ICT by IPAs


Of the PhP 6.5 billion total approved investments in the ICT indus ry, majority (98.6 percent)were coursed through PEZA at PhP 6.4 billion (Part /I - Table 9 ). This is a 230.1 percentexpansion from the same period last year. Meanwhile, only PhP 94.6 million pesos of ICTinvestments were approved by the three other IPAs, an 11.5 percen growth from the combinedPhP 84.8 million ICT investment proposals in the second quarter of 008.


For the first semester of 2009, major chunk (95.8 percent) of the pro pective investments in ICTwere registered through PEZA while the remaining 4.2 percent ca e from BOI (3.1 percent),CDC (0.6 percent) and SBMA (0.5 percent). Project applications cursed through PEZA wasvalued at PhP 8.6 billion, 44.6 percent higher than PhP 5.9 billion orth of ICT investments inthe same period last year.

The BOI and CDC ICT approved investments, on the other han , plummeted in the firstsemester, dropping by 78.6 percent and 74.9 percent, respectively. SBMA approvals in ICT,however, recovered with PhP 43.8 million worth of investments, mor than double compared toPhP 19.5 million in the first semester 2008.

3. Total approved investments in ICT by ICT sub-industry (Jevel and share)


The second quarter 2009 approved investments in ICT were int nded entirely for the ITservices. All the three other sub-industries in ICT, namely, anufacturing, trade andtelecommunications failed to get investment proposals during the q arter. During the secondquarter last year, teiecommunication sub industry had approved i vestment worth PhP 7.0million (Part 11- Table 11a).


Similarly, first semester approved investments in ICT amounting to hP 9.0 billion practicallycame from the IT services sub-industry. Only PhP 5.2 million wer intended for other sub-industries, in which PhP 4.0 million will be for telecommunications and PhP 1.2 million will be fortrade. Manufacturing in ICT failed to get investment proposals as mpared to the PhP 1.7billion worth of commitments during the first semester of 2008, particu arly in 01 2008 (Part II _Table 11b).

12

Foreign Direct Investments, Q2 2009

4. Projected employment from approved investments in ICT b ICT sub-industry


ICT-related investments, particularly in IT services sub-industry, ap roved within the quarter areexpected to create 17,974 new jobs, 41.6 percent higher than the 1 ,690 expected employmentin 02 2008 (Table F below Part II - Tables 12a). Manufacturing, tr~de and telecommunicationsub-industries in ICT had no expected job to be created due te the absence of proposedinvestments in these sub-industries.

Projected employment from ICT industry accounted for 52.5 percen of total jobs expected frominvestment projects approved in the second quarter of 2009 (Part II Tables 8a & 12a).

Table FProjected Employment on Approved Investments in ICT by CT Sub-Industry

Second Quarter, 2008and 2009leT sub industry Q22008 Q22009 Percent to To al Growth Rate

Notes:Details may not add up to totals due to rounding.Sources of basic data: Board of Investments (BOI). Philippine Economic Zone Authority (P ~),

Subic Bay Metropolitan Aurhorify (SBMA) and Clark Development Corporation CDC).

IT Services 12,685 17,974ManufacturingTelecommunications 5TradeTotal 12,690 17,974

100.p

100.

41.7

41.6


For the cumulative data in the first semester of 2009, ICT-related in estments are expected togenerate 32,260 additional jabs, 27.6 percent higher than the expec ed employment of 25,286jobs last year (Part 11- Table 12b). The IT services sub-industry is ex ected to absorb almost allof these expected employment as trade and telecommunications only combined for less than 20expected jobs while manufacturing having no expected jabs comparEd to 1,909 recorded in thesame period last year.

D. Actual foreign direct investments in the Balance of Payn ent1

1. Total BOP FDI in US Dollars ($) and Philippine Pesos (levels, nd growth)'


Actual FDI in the Balance of Payment (BOP) as compiled by the B, ngko Sentral ng Pilipinas(BSP) for the months of April to June showed resurgence from the lump experienced in thefirst quarter of 2009 as it more than doubled during the period, fror last year's net inflow ofUS$ 386.0 million to US$ 854.0 million in 2009. In peso terms, a~tual FDI grew by 147.6percent from its level of PhP 16.5 billion in 2008 to PhP 40.9 billion in 2009 (Part II - Table 13a& 14a).

1 SSP media release dated September 10, 2009

2 Using monthly average buying and selling rates downloaded from SSP website

13


Foreign equity capital investments jumped nearly five times its las year's level of US$ 205,0million to US$ 948.0 million for the same period in 2009, offsetting he decline experienced byboth reinvested earnings and other capital. Reinvested earnings dr pped by 21.3 percent fromUS$ 61.0 million in second quarter of 2008 to US$ 48.0 in second uarter of 2009 while othercapital reversed from a net inflow of US$ 120.0 million to a net 0 tfIow of US$ 142.0 millionduring the same comparables periods.


As reported by the SSP, FDI for the first six months of 2009 recar ed a net inflow of US$892million as equity capital and reinvested earnings posted positive ba ances, moderating the netoutflows in other capital. The level was nearly 50 percent higher tha the net inflow of US$605million realized in the comparable period a year ago (Figure 13b elow and Part II - Table14b).

FDI net inflows for the period January - June 2009 were largely in the form of equity capitalamounting to US$996 million. These investments came from the U. " Japan, Hong Kong andthe Netherlands and were directed mainly to the manufacturing, real estate, construction,services, financial intermediation, mining and trade/commerce sector .

Reinvested earnings for the first half of 2009 turned around to a ne inflow of US$88 from theUS$184 million net outflow posted a year ago, as corporate perform nce turnouts were better-than-expected, prompting investors to retain part of t eir earnings in localenterprises/corporations.

Meanwhile, the other capital account, consisting mainly of interc mpany borrowing/lendingbetween foreign direct investors and their subsidiaries/affiliates in the Philippines. reversed to anet outflow of US$192 million, compared to the US$407 milli n net inflow during thecomparable period in 2008. The SSP attributed these outflows t the higher trade creditsextended to affiliates abroad and intercompany loan repayments to fo eign direct investors .

._- ~-- -_ .._------------------------------- ---- _._-.Figure 13b

Balance of Payments FDIFirst Semester, 2008 and 2009

o Sem1 2008

oSem1 2009

60,000.047,787.4

45,000.0 42,540.6

, " 945121

Othe Ca I I,net

6,684,3

4,205.8

EqUityCaPita;,--(714~~L~d -net Earnings

Non-Residents'Investments in the

Phils.

0.0

15,000.0

(15,000.01

illc. 30,000.0 _ 25,519.2c:~'E.5

14

.-

PART II

STATISTICAL TABLES

Symbols Used

Symbolspr

Meaning

PreliminaryRevised

ZeroNot applicable

Table 1aTotal Approved Foreign Direct Investments by Promotion AgencyFirst Quarter 2008 to Second Quarter 2009(in million pesos)

Approved FOI Percent to Growth RateAgency 2008 I 2009 Total Q2 022008.

Ql I Q2 I Q3 I Q4 I Total I Ql I ~ 2009 022009

15

(95,9)7,0

(66,6)

38,8

(73.0)

10.863,613,312.3

100.0

2,1~e4,412,6 ,6

2.65 ,32,446,7

19,94P,0

ppine Economic Zone Authority (PEZA), Subic Bay Metropolita Aurhority (SBMA)oration (CDC).

._----- ..' ---Figure 1a

Total Approved FOISecond Quarter, 2008 and 2009

. " ,

~9 • . <"~ :,;:

-;.~~." .4-:

" ~~,~,~~"' 19.9

" ~.,"" f

. ~..,J

-~ ._--2008 Q2 2009

'-..

80.0

60,0 ,73••0••~c.c 40,0~:c.E ..

20.0

0,0

Q2------ _.

BOI 328.6 52,297,7 40,111,1 814,2 93,551.6 434,4PEZA 19,454,6 11,845,7 18,920,2 20,134,6 70,355,1 3,419,8SBMA 782,7 7,965,1 546,5 237,0 9,531,2 42,4CDC 183,9 1,762,7 7,096,4 200,1 9,243,0 62,6Total 20,749,8 73,871,1 66,674,2 21,385,8 182,680,9 3,959,1Notes;Details may not add up to totals due to rounding.Sources of basic data: Board of Investments (B01). Phili

and Claril Development Corp

Table lbTotal Approved Foreign Direct Investments by Promotion AgencyFirst Semester 2008 to First Semester 2009(in million pesos)

Approved FOrPercent to Total Growth Rate

Seml 2008 I Seml 2009 Seml 2008-Agency Sem12009Sem12009

BOI 52,626.2 2,598.7 10,9 (95.1)PEZA 31,300.3 16,098.3 67,3 (48,6)SBMA 8,747.7 2,701,7 11,3 (69,1)CDC 1,946.6 2,509.3 10.5 28,9Total 94,620.9 23,908.0 100.0 (74.7)Notes:Details may not add up 10 totals due to rounding.

Sources of basic data: Board of Investments (BOI), Philippine EconomIc Zone Authority (PEZA). Suble Bay Metropoti n Aumority (SBMA)and Clart Development Corporation (CDC) .

.- ~-------_._-----------+

100,090,080,070,060,050.040.030,020,010.0

Figure 1bTotal Approved FDI

Sem1 2008 and Seml 2009

94.6

23.9.. ,...•,:..-:;,;; -

Sl 2008 S12009

16

Table 2aTotal Approved Foreign Direct Investments by Country of InvestorFirst Quarter 2008 to Second Quarter 2009(in million pesos)

Approved FOI Percent '0Country 2008 to Total Rate

Q2 2008.01 02 03 04 Total 02 022009 Q22009Australia 285.5 20.1 371.8 669.9 1,347.3 168.3 254.4 1.3 1,167.0British Virgin Is. 67.3 258.0 1,785.2 2,110,6 20.5 813.6 4.1 215,3Cayman Islands 12.3 3,591.5 11.9 3,615.7France 629.0 12.0 60,1 120.4 821,5 0.1Germany 2,183.8 102.0 1.411.5 67.9 3,765,3 50.5 20.2 0.1 (80,2)Hong Kong 41.4 142.2 35.1 916.0 1,134.8 62,5 3,796.8 19,0 2,569,4Italy 0.3 49.9 50,2Japan 2.823.1 2,282.6 9,768.8 1,241,1 16,115,6 809.4 2,553.3 12,8 11,9Korea 9,157.2 21,312,5 7,342.1 2,141.8 39,953,6 333.1 5,102.6 25,6 (76,1)Malaysia 96.5 3.1 1.3 10,8 111.7 63,2 0,3 1,965.5Netherlands 48.4 9,3 36,844,5 8,452.1 45,354,3 848.9 995.8 5.0 10,599,1Norway 6.6 4,001,1 42,6 0,7 4,051,0 20.2Others 329.2 6,004.9 528.1 1,257,4 8,119.7 613.1 656.7 3,3 (89,1)PROC 26.0 2,090.0 59.6 131.5 2,307.1 28.9 295,1 1.5 (85.9)Singapore 175.2 5,349.4 389,8 650,2 6,564,6 58,2 145.4 0.7 (97,3)Sweden 0.0 0,0 0.0 0.0 0,0 0,0Switzerland 0.0 40.5 776,7 121.4 938.7 715.3 3,6 1,665,0Taiwan 636.2 444,1 64,3 143.0 1,287,6 3.0 54,9 0,3 (87,6)Thailand 37.1 0,9 38,0 0.0 (100,0)UK 420.5 21,812,3 2,658,7 381.0 25,272,5 184.2 .2,023.4 10,1 .(90,7)USA 3,811.3 6,358.3 6,318,2 3,233,6 19,721.4 758.4 2,458.3 12.3 (61,3)Total 20,749,8 73,871,1 66,674,2 21,385,8 182,680.9 3,959.1 9,949,0 100,0 (73.0)Noles:Details may not add up to tolals due to rounding.

Sources of basic data: Board of Inyestments (B01), Philippine Economic Zone Authority (PEZA),

Subic Bay Metropolitan Aurt10rity (SBMA) and Clar1< Development Corporation (CDC).

- . -_. -._-_._-_._--------_.-

Japan12.8%

O"g Kong19.0%

Korea25.6%

Australia1.3%Others

3.3%

Netherlands5.0%

Figure 2aTotal Approved FDls by Country of Investor

Second Quarter 2009

British Vir. Is4.10/.UK

10.1%

PROC1.5%

USA12.3%

Switzerland3.6%

Singapore0.7%

17

Table 2b

Total Approved Foreign Direct Investments by Country of InvestorFirst Semester 2008 to First Semester 2009(in million pesos)

Approved FDI Percent to Total roWl ate

Sem12009 Sem1 2008 .Sem1Country Sem12008 Sem12009 2009

Australia 305.6 422.7 1.8 38.3British Virgin Is. 325.4 834.1 3.5 156.4Cayman Islands 3,603.8France 641.0 0.1Germany 2,285.9 70.6 0.3 (96.9)Hong Kong 183.7 3,859.3 16.1 2,001,3Italy 0.3Japan 5,105.7 3,362.7 14.1 (34.1)Korea 30,469.7 5,435.7 22.7 (82.2)Malaysia 99.6 63.2 0,3 (36,5)Netherlands 57.7 1,844.7 7,7 3,098.9Norway 4,007.7 20.2 0.1 (99.5)Others 6,334.2 1,269.8 5.3 (80.0)PROC 2,115.9 324.0 1.4 (84,7)Singapore 5,524.5 203.5 0,9 (96,3)Sweden 0.0 0.0 0,0 (15.7)Switzerland 40.5 715.3 3,0 1,665,0Taiwan 1,080.3 57.9 0.2 (94.6)Thailand 37.1UK 22,232.8 2,207.6 9,2 (90.1)USA 10,169.6 3,216.7 13.5 (68.4)Total 94,620.9 23,908.0 100.0 (74.7)Notes:

Details may not add up 10 totals due to rounding.

Sources of basic data: Board of Investments {BOil, Philippine Economic Zone Authority (PEZA),

Subic Bay Metropolitan Aurhority (SBMA) and Clark Development Corporation (CDC).

Figure 2bTotal Approved FDls by Country of Investor

First Semester, 2009

---,

Switzerland3.0%

Singapore0.9%

PROC1.4%

USA13.5% UK

9.2%Others5.3%

Australia1.8%

8ritis Virgin Is.5%

Germany0.3%

Hong Kong16.1%

Netherlands7.7% Korea

22.7%

J pan1 .1%

18

Table 3aTotal Approved Foreign Direct Investments by IndustryFirst Quarter 2008 to Second Quarter 2009(in mil/ion pesos)

32.831.50.60.8

4.6 0.0621.5 41.014.5 39,294.8 347.9 81,278.7 1,888.7 9.5 (95.4)555.0 1.878.5 102.5 9,021.3 11,557.3 80.1 7,593.4 38.1 304.2

15,760.0 12,237.4 17,434.0 2,925.5 48,356.8 1, 26.1 3,814.9 19.1 (68.8)269.7 3,063.6 26.9 3,360.2 156.1

3,160.2 14,115.2 9,755.0 8,979.3 36,009.7 2, 82.4 6,605.5 33.1 (53.2)12.3 0.2 12.5

132.8 58.4 50.0 81.0 322.2 8.7 373 0.2 (36.0)194.2 1,363.0 6.5 3.7 1,567.5 5.8 4.5 0.0 (99.7)

20,749.8 73,871.1 66,674.2 21,385.8 182,680.9 3, 59.1 19,948.9 100.0 73.0

Approved FOI Percent to Growth2008 2009 Total Q2 RateIndustry

022008 -01 I Q2 I Q3 I Q4 I Total Q1 I Q2 2009 Q2 2009Agriculture 55.6 35.6 - - 91.2 - - . .Communication - 92.0 - - 92.0 - - . -

- - - . -ConstructIonEducationElectricityFinance & Real EstateManufacturingMiningPrivate ServicesStorageTradeTransportation

TotalNotes:

Details may nol add up 10totals due to rounding.

Sources of basic data: Board of Investments (BOI). Philippine Economic Zone Authority (PEZA),


... --._._---- ----------_._----------------- -- ---- --.Figure 3a

Total Approved FOls by IndustrySecond Quarter 2009

Finance & Real Estate38.1%

Manufacturing19,1%

Electricity __9.5% Trade

0.2%Education0.0%

Transportation0.0%

Private ervices33. %

- -----_._--- _._--------- _. ----

19

Table 3bTotal Approved Foreign Direct Investments by IndustryFirst Semester 2008 to First Semester 2009(in milljon pesos)

Approved FDI ereen a Growth RateTotalSem1 Sem1 2008.Industry Sem12008 Sem12009 2009 Sem12009

Agriculture 91.2Communication 92.0Construction 1.4Education 4.6 0.0Electricity 41,636.0 1,888.7 7,9 (95,5)Finance & Real Estate 2.433.5 7,773.5 32,5 219,4Manufacturing 27,997.4 5,141.0 21.5 (81.6)Mining 3,333.3 156.1 0.7 (95.3)Private Services 17,275.4 8,887.8 37.2 (48,6)Storage 12.3Trade 191.2 46.0 0.2 (75.9)Transportation 1,557.2 10.2 0.0 (99.3)

Total 94,620.9 23,908.0 100.0 (74.7)Notes:

Details may not add up to totals due to rounding

Sources of basic data: Board of Investments (BOI), Philippine Economic Zone Authority (PEZA),

Subic Bay Metropolitan Aurhority (SBMA) and C!ar1< Development Corporation (CDC),

,~-----,. --- .... ---------------------.-

Figure 3bTotal Approved FDls by Industry

First Semester, 2009

Manufacturing21.5%

Mining0.7%


Private Services37,2%

Electricity7.9%

Trad0.2%

Tra sportation0.0%

"\ Edu tionO. %

20

Table 4aProjected Employment on Approved Projects with Foreign InterestFirst Quarter 2008 to Second Quarter 2009

Percent to ro2008 2009 RateAgencyTotal Q2

022008-0201 Total 01 0 2009 2009BOI 2,691 17,072 2,060 2,016 23,839 2,773 1, 77 5.8 (90.2)PEZA 22,353 16,243 17,729 18,219 74,544 15,800 24, 76 84.0 50.1SBMA 2,213 899 1,446 508 5,066 400 2, 42 8.1 160.5CDC 522 4,903 2,742 87 8,254 623 11 2.1 (87.5)Total 27,779 39,117 23,977 20,830 111,703 19,596 29006 100.0 (25.8)Notes:



Subic Bay Melropolltan Aurtlority (SBMA) and Clark Development Corporation {CDC).

Figure 4aProjected Employment02 2008 and Q2 2009100,000

90,000 .

80,000

70,000

60,000

50,000

40,000 .

30,000 -

20,000 .

10,000 ~

o ...

90,155

" ,!

39,117

022008

Don Total approved investments

.on Total approved investments with ,foreign interest

34,216

";

Q2 2009

21

Table 4bProjected Employment on Approved Projects with Foreign InterestFirst Semester 2008 10 First Semester 2009

Agency Projected Employment ercent to ota roWl5em1200B 5em12009 5em12009 Rate

BOI 19,763 4,450 9,2 (77.5)PEZA 38.596 40.176 82.7 4.15BMA 3.112 2.742 5.6 (11.9)CDC 5,425 1.234 2.5 (77.3)Total 66,896 4B,602 100.0 (27.3)

NOles:

Details may nol add up to totals due 10 rounding.

Sources 01 basic data: Board of Investments (BOt). Philippine Economic Zone AuthOrity (PEZA),

SUbic Bay MetropOlitan Aurhorily (SBMA) and Clark Development Corporation (CDC).

---------_ ..

140,000 .. 131,545

Figure 4bProjected Employment

Sem1 2008 and Sem2 2009

120,000 ..

100,000 ..Don Total approved investments

.on Total approved investments with f reign Interest

BO,OOO ..

60,000 ,II

40,000 ;

20,000

o

",.

66,896

••

51200B

60,322

512009

22

Table SaTotal Approved Investments by Promotion AgencyFirst Quarter 2008 to Second Quarter 2009(in mil/ion pesos)

Approved InvestmentsPercent ro

Agency 2008 12009 to Total RateQ2 2008.Q1 Q3 Total Q1 Q2 Q2 2009Q22009

BOI 11,038.9 217,234.4 48,205.2 12,855.5 289,334.0 4,302., 36,756.3 54.5 (83.1 )PEZA 27,734.3 25,800.1 40,852.6 60,396.5 154,783.6 13,673. 24,939.0 37.0 (3.3)SBMA 988.4 8,164.0 886.5 420.8 10,459.7 1,295. 2,890.1 4.3 (64.6)CDC 297.7 1,807.7 7,306.9 231.5 9,643.7 143. 2,799.2 4.2 54.9Total 40,059.3 253,006.2 97,251.2 73,904.3 464,221.0 19,4141 67,384.7 100.0 (73.4)Notes:


Sources of basic data: Board of Investments (BOI), Philippine Economic Zone Authority (PEZA),Subic Bay Metropolitan Aurtlority (SBMA) and Clark Development Corporation (CDC).

Figure 5aTotal Approved Investments by Foreign and Filipino N tionals

Second Quarter, 2008 and 2009

_.__ .__ .._--------- --_.~-------

47.419.9

:_FilipinDl'

IGJFOrejg~ r

Q22009Q22008

Total Approved nvestmentsQ1 2008 and Q1 2009

300.0 ,'" 250.0o'"8. 200.0

~ 150.0

:c 100.0

.:: 50.0

67.4

Q22009

253.0

Q22008

50.0

Total Approved InvestmentsQ1 2008 and Q1 2009

300.0 c

150.0

100.0

0.0

250.0.III::l 200.0 .c.c:~:c.S

23

Table 5bTotal Approved Investments by Promotion AgencyFirst Semester 2008 to First Semester 2009(in mi/fion pesos)

Approved Investments Percent to TotalAgency Sem1 2008 5em12009 Sem12009 Sem1 2008-

5em12009BOI 228,273.3 41,058.4 47.3 (82.0)PEZA 53,534.4 38,612.4 44,5 (27.9)SBMA 9,152.5 4,185.6 4.8 (54.3)CDC 2,105.3 2,942.4 3.4 39,8

Total 293,065.5 86,798,8 100,0 (70.4)Noles:Details may nol add up to totals due to rounding.

Sources of basic data: Board of In'Jeslmenls (BOI), Philippine Economic Zone Authority (PEZA),Subic Bay Metropolitan Aurhority (SBMA) and Clark Development Corporation (CDC).

Figure 5bTotal Approved Investments by Foreign and Filipino Nation 5

First Semester, 2008 and 2009

;- -------._ .._--

:_Filipino

~~X~~~!9~_

~

62.923.9

.- --", - ----. 51 2009

198.4

94.6

S1 2008

Total Approved Inv stmentsSem1 2008 and Se 1 2009

350,0300.0250,0200,0150,0100.050.0

~-

~o~Co

, C

~:a,~

86.8

51 2009

~---~----

293.1

51 2008

Total Approved InvestmentsSem1 2008 and Sem1 2009

350.0~ 300.0g 250.0~c 200,0~ 150.0:a 100,0.!i: 50.0

24

Table 6aTotal Approved Investments by Nationality (Filipino and Foreign) and by Promotion AgencyFirst Quarter 2008 to Second Quarter 2009(in million pesos)

2008Agency 1st Quarter I 2nd Quarter I Jrd Quart r I 4th Quarter

Foreign I FiIiDino''T Total I Foreign I FiIiDino"T Total I Foreign T Filioino" Total I Foreign T Filipino I TotalBOI 328.6 10,710.3 11,038,9 52,297.7 164,936.8 217,234.4 40,111.1 8,094.1 48,205.2 '814.2 12,041.3 12,855.5PEZA 19,454.6 8,279.7 27,734,3 11,845.7 13,954.4 25,800.1 18,920.2 21,932.4 40,852,6 20,134.6 40,262.0 60,396.5SBMA 782.7 205.7 968.4 7,965.1 199.0 8,164.0 546.5 340.0 886.5 237.0 183.8 420.8CDC 183.9 113.7 297,7 1,762.7 45.0 1,807.7 7,096.4 210.5 7,306.9 200.1 31.4 231.5Total 20,749.8 19,309.4 40,059.3 73,871.1 179,135.1 253,006.2 66,674.2 30,577.0 97,251.2 21,385.8 52,518.5 73,904.3% Share toTotal 51,8 48.2 100.0 29.2 70,8 100,0 68.6 31.4 100.0 28,9 71,1 100.0aJ Includes all committed investments of Filipinos in wholly and partially owned companies.Notes:


Sources of basic data: 80ard of Investments (BOI), Philippine Economic Zone Authority (PEZA), Subic Bay Melropolitan AurhOrily (SBMA) and ark Development Corporation (CDC).

2009 Growth RatAgency Q2 2008.02 2 09

Foreign Total Foreign Filipino TotalBOI 434.4 3,867.7 4,302.1 2,164.4 34,592.0 36,756,3 (95.9) (79,0) (?3.1)PEZA 3,419.8 10,253.6 13,673,4 12,678.6 12,260.5 24,939,0 7.0 (12,1) (3.3)SBMA 42.4 1,253.1 1,295.5 2,659.3 230.7 2,890.1 (66.6) 16,0 (64.6)CDC 62.6 80.6 143.2 2,446.7 352.5 2,799,2 38,8 683.5 54.9

Total 3,959.1 15,455.0 19,414,1 19,949,0 47,435,7 67,384,7 (73.0) (73,5) (73.4)% Share toTotal 20.4 79.6 100,0 29.6 70,4 100.0

Figure 6aPercent share of Total Approved Investments

Foreign and Filipino NationalsQ2 2008 and Q2 2009

Q22008

25

Table 6b

Total Approved Investments by Nationality (Filipino and Foreign) and by Promotion AgencyFirst Quarter 2008 to Second Quarter 2009(in million pesos)

Agency

ForeignForeign

BOI 52,626.2 175,647.1 228,273.3 2,598.7 38,459.7 41,058.4 (95.1 ) (78.1 ) (82.0)PEZA 31,300.3 22,234.1 53,534.4 16,098.3 22,514.1 38,612.4 (48.6) 1.3 (27.9)SBMA 8,747.7 404.7 9,152.5 2,701.7 1,483.8 4,1 5.6 (69.1) 266.6 (54.3)CDC 1,9466 158.7 2,105.3 2,509.3 433.1 2,9 2.4 28.9 172.9 39.8Total 94,620.9 198,444.6 293,065.5 23,908.0 62,890.7 86, 98.8 (74.7) (68.3) (70.4)% Share toTotal 32.3 67.7 100.0 27.5 72.5 00.0a/ Includes all committed investmen.fs of Filipinos in wholly and partially owned companies.Notes:




"- --_. ---------------~---------~----- -_.~--- -_.

350.0

Figure 6bTotal Approved InvestmentsFirst Semester, 2008 and 2009

250.0

300.0

'"o'"8.. 200.0c~ 150.0:a.~

100.0

50.0

51 2008

198.4

94.6

51 2009

i-Filipino

~~~ejg~_

26

", ,'''''''''-..;'0 •. ;.,,., - ;'~..•,.,,~- ---==--~....:;;--~--.

Table 7aTotal Approved InveSlments (Filipino and Foreign) by IndustryFirst Quarter 2008 to Second Quarter 2009(in million pesos)

Approved Investments Percent GrowthIndustry 2008 I 2009 to Total Rate

Q1 I Q2 I Q3 I Q4 I Total I Q1 I Q2 Q22009 Q2 2008.Agriculture 83.5 2,298.7 . 115.8 2,498.0 - . (100,0)Communication 1,949.1 237.0 . 2,186.0 . . (100.0)Construction 0.8 37.7 167.9 9.5 215.9 - 4.9 0,0 (87,0)Education

92.6 0,1 .Electricity 1,113.6 84,241.1 42,369.8 4,198.1 131,922,6 142.8 29,101.1 43.2 (65.5)Finance & Real Estate 9389.5 52130.0 7705.5 44863.2 114088,2 12150.9 23871.6 35.4 54.2Health 50.0 22.3 0.0Manufacturing 17,073.0 27,630.8 23,727.3 7,086.5 75,517.6 2,,98.9 4,586.0 6,8 (83.4)Mining 1,355.0 46,796.8 117.3 48,269.1 56.1 (100,0)Private Services 7,766.9 26,645.1 21,782.9 15,222.0 71,416,9 2, 11.8 8,329.1 12.4 (68.7)Storage 22.1 1,037.4 1,059.4Trade 185.5 127.2 104.2 114.4 531.3 1, 63.4 323.8 0.5 154.6Transportation 1,142.5 12,839.7 1,393.5 1,140.1 16,515,8 40.3 1,053.2 1.6 (91.8)

Total 40,059.3 253,006.2 97,251,2 73,904,3 464,221.0 19414.1 67,364.7 100.0 (73.4)Notes:

1. Approved Investments refer to the project cost or committed investments by Filipino and foreign investors.2. Details may not add up to totals due to rounding.

Sources of basic data: Board of Investments (BOl), Philippine Economic Zone Authority (PEZA),Subic Bay Metropolitan Authority (SBMA), and Clark Development Corporation (CDC).

-_._------~._.... _----- --- ..

Figure 7aTotal Approved Investments by Industry

Second Quarter 2009

Education0.1%

Trans ortation16%


Electricity43.2%

Health0.0%

Manufacturing6.8%

Construction0.0%

Pri ate Services12.4%

Trad0.5"1.

27

~- - .,:;,.--::::..:.:..- .. .-----:;-; ::,....- .-.~..~

Table 7bTotal Approved Investments (Filipino and Foreign) by IndustryFirst Semester 2008 to First Semester 2009(in million pesos)

Approved Investments Growth RatePercent to TotalSem1 2008.Industry Sem1 2008 Sem1 2009 Sem12009Sem1 2009

Agriculture 2,382.2Communication 2,186.0Construction 38.6 4.9 0,0 (87,3)Education 92,6 0,1Electricity 85,354.7 29,244,0 33,7 (65,7)Finance & Real Estate 61,519,5 36,022,5 41,5 (41,4)Health 372,3 0,4Manufacturing 44,703.8 6,884,9 7,9 (84,6)Mining 48,151,8 156,1 0,2 (99,7)Private Services 34,412.0 11,240,8 13,0 (67,3)Storage 22,1Trade 312.7 1,387,3 1,6 343,7Transportation 13,982.2 1,393.5 1,6 (90.0)

Total 293,065,5 86,798.8 100.0 (70.4)Notes:

1. Approved Investments refer to the project cost or committed investments by Filipino and foreign investors.

2. Details may nol add up to totals due 10rounding.

Sources of basic data: Board of Investments (BOI), Philippine Economic Zone Au1l10rity (PEZA),

Subic Bay Metropolitan Authority (SBMA), and Clar1< Development Corporation (CDC).

--- --~_._~--------------Figure 7b

Total Approved Investments by IndustryFirst Semester 2009

Health0.4%

Manufacturing _ Private Services7.9% 13.0%


Trade1.6%

Transport tion1.6%

- Educa jon0.10

Electricity33.7%

Construction0.0%

28

29

~-.".. ...••..•"...,.,...-." - -- - .. -

Table BaProjected Employment on Approved InvestmentsFirst Quarter 2008 to Second Quarter 2009

200B 2009 Percent to Growth RateAgencyTotal 02 Q22008.Q2

01 02 03 Q4 I Total Q1 I ( 2 2009 2009BOI 11,872 66,205 6,245 10,713 95,035 8,434 5 122 15,0 (92,3)PEZA 26,218 17,805 20,243 19,010 83,276 16,380 25 597 74,8 43.8SBMA 2,458 1,152 1,725 912 6,247 580 27 95 8.2 142.6CDC 842 4,993 2,863 135 8,833 712 702 2.1 (85.9)Total 41,390 90,155 31,076 30,770 193,391 26,106 342 16 100.0 (62.0)Noles:

1. Approved Investments refer 10the project cosl or committed investments by Filipino and foreign investors.2, Details may not add up to tolals due to rounding.

Sources of basic data: Board of Investments (BOI). Philippine Economic Zone Autl10rity (PEZA),

Subic Bay Metropolitan Authority (SBMA). and Clark Development Corporation (CDC)

Table 8bProjected Employment on Approved InvestmentsFirst Semester 2008 to First Semester 2009

Projected EmploymentPercenl to Growth Rate

Agency Total Sem1 Sem1 2008.Sem12008 em1 200 2009 Sem1 2009

BOI 78,077 13,556 22.5 (82.6)PEZA 44,023 41,977 69.6 (4.6)SBMA 3,610 3.375 5,6 (6.5)CDC 5,835 1,414 2.3 (75.8)

Total 131,545 60,322 100.0 (54.1)Notes:

1. Approved Investments refer to the project cost or committed investments by Filipino and foreign investors.2. Details may not add up to totals due to rounding.

Sources of basic data: Board of Investments (BOI), Philippine Economic Zone Authority (PEZA),Subic Bay Metropolitan Authority (SBMA). and Clark Development Corporation (CDC).

._--~- ... - ._,.. . ,-~.._~.~--

Table 9aTotal Approved Investments in the Information and CommunicationTechnology(ICT) Industry by Promotion AgencyFirst Quarter2008 to Second Quarter 2009(in million pesos)

1962

Total

102.14,011.6

80

42.5117.7

1882

59.63.893.9

9.12,395.3

6.51997

7.1"107.4

. 2.8I' 31 1

2.02.287.8

3.81686

2008

58.11,942.0

13.0137108

31.0140.1

27.11.801.9

13.029

1,263.74,038.2

6.92033

1.234833.20.0194

28.94.005.0

6.81839

Agency

BOIPEZASBMACDC

Total 4,224.6 1,287.4 5,512.0 1,844.9 181.9 2,026.8 2,462.2 ' 148.4 2,610.6 4,141.7 168.2 4,309.9% Share toTotal 76.6 23.4 100.0 91.0 9.0 100.0 94.3 5.7 100.0 96.1 3.9 100.0al Includes Economic Zone Development and Industnal ParkNotes:

1 Approved Investments refer to Ihe prOject cost or commilled investments by Filipino and foreign investors2_ Details may not add up to totals due to rounding.

Sources of baSICdata: Board of Investments (BOI). Philippine Economic Zone Authority (PEZA). Subic Bay Metropolitan Authority (5 MA). and Clar'K Developmenl Corporation (CDC)

2009 Gro\ h RateAgency 1st Quarter 2nd Quarter 02200 - 02 2009

Foreign I Filipinoalj Total I Foreign I Filininoall Total Foreign I Fill inoall TotalBOI 207,8 6.5 214.4 60.7 7.4 68.1 124.0 76.0) 17.3PEZA 1,935.3 299.7 2,235.0 6.317.0 92.5 6,409.5 250.6 33.9) 230.1SBMA 18.9 - 18.9 15.9 8.9 24.8 22.3 . 90.7CDC 11.2 41.8 53.0 1.6 1.6 (45.5) ( 00.0) (88.3)

Total 2,173.2 348.0 2,521.2 6,395.2 108.9 6,504.1 246.6 40.1) 220.9% Share toTotal 33.4 5.4 38.8 98.3 1.7 100.0

Table 9bTotal Approved Investments in the Information and CommunicationTechnology(tCT) Industry by Promotion AgencyFirst Semester 2008 to First Semester 2009(in million pesos)

Approved Investments in leT Grow RateAgency First Semester 2008 I First Semester 2009 Sem12008 Sem1 2009

Foreign I Filioino;;Jf Total I Foreign I Filioinoalf Total Foreign I Fili inoaIT TotalBOI 56.0 1.2658 1,321.8 268.5 14.0 282.5 379.9 ( 8.9) (78.6)PEZA 5.806.9 173.3 5,980.1 8.252,3 392.2 8,644.5 42.1 1 6.4 44.6SBMA 19.9 0.0 19.9 34.9 89 43.8 75.4 - 119.7CDC 186.9 30.2 217.0 12.8 41.8 54.6 (93.2) 8.4 (74.9)

Total 6,069.5 1,469.3 7,538.8 8,568.4 456.9 9,025.3 41.2 ( 8.9) 19.7% Share toTotal 80.5 19.5 100.0 94.9 5.1 100.0aJ Inoudes Economic Zone Development and Industrial Park.Notes:

1. Approved Investments refer 10the project COSIor committed Investments by Filipino and foreign investors2_ Details may not add up 10totals due to rounding

Sources of basic data: Board of Investments (BOI). PhIlippine EconomlC Zone Authority (PEZA). Subic Bay Metropolitan Authonty (5BI A). and Clar'K Deveiopment Corporation (CDC)

30

- - .~-- - -.~~, -- ~"'" "-- -~--~~,-~

Table 10aTotal Approved FDls In the Information ar>d Communication Technology(ICT) and Non-ICT Industry by Promotion AgencyFirst Quarter 2008 to Second Quarter 2009(in million pesos)

FDI

100.1

814.r20,134.~237.(-200.1,

21,385.

31

19.4

188.24,141.7

59.63,893.9

80.6

754.616,240.7

237.011.9

17,244.1

oration (CDC).

oration (CDC)

I 4th QuarterFDI I Non-iCT I ICT I

100.0

40,111.118,920.2

546.57,096.466,674.2

3.796.3

2008I 3rd QuarterI Non-ICT I ICT I I

I2.0

2,287.838168~2,4622

100.0

FDI

2.597.5

I 2nd Quarter

I Non.ICT I ICT I

100.0

FDI

20.4

28.9 328.6 52,270.6 27.1 52,297.7 40,109.14,005.0 19,454.6 10,043.8 1.801.9 11,845.7 16,632.4

6.8 782.7 7,952.0 13.0 7,965.1 542.7183.9 183.9 1,759,7 2.9 1,762.7 6,927.8

4,224.6 20,749.8 72,026.2 1,844.9 73,871.1 64,212.0

1st Quarter

Non-ICT I ICT IAgency

BOI 299.7PEZA 15,449.6SBMA 775.9CDC

Total 16,525.2ar

to Total 79.6Notes-

1. Approved Investments refer to the projecl cosl or committed investments by Fjljpino and foreign investors2, Details may not add up to tolals due to rounding

Sources of basic dala: Board of Inveslments (BOI). Philippine Economic Zone Authority (PEZAJ. Subic Bay Metropolitan Authority (SBMA). and Cia!Development Corp

2009 2009 Growtrh R teAgency 1st Quarter 2nd Quarter Q22008.o2 009

Non-ICT I ICT I FDI Non-ICT I ICT I FDI Non-ICT I ICT II FDIBOI 226.5 207.8 434.4 2,103.7 60.7 2,164.4 (96.0) 124.0 (95.9)PEZA 1,484.5 1,935.3 3,419.8 6,361.6 6,317.0 12,678.6 (36.7) 250.6 7.0SBMA 23.4 18.9 42.4 2,643.4 15.9 2,659.3 (66.8) 22.3 (66.6)CDC 51.4 11.2 62.6 2,445.1 1.6 2,446.7 38.9 (45.5 38.8

Total 1,785.8 2,173,2 3,959.1 13,553.8 6,395.2 19,949.0 (81.2) 246.6 ' (73.0)% Shareto Total 9.0 10.9 19.8 67.9 32.1 100.0

Table 10bTotal Approved FDls in the Information and Communication Technology(ICT) and Non- ICT Industry by Promotion AgencyFirst Semester 2008 to First Semester 2009(in million pesos)

Approved FDI in leT Growth RatAgency First Semester 2008 I First Semester 2009 Sem1 2008 • Sem 2009

Non-ICT I ICT I FDI Non-ICT I ICT T FDI Non-ICTT ICT FDIBOI 52,570.3 56.0 52,626.2 2,330.2 268.5 2,598.7 (95.6) 379.9 (95.1)PEZA 25,493.5 5,806.9 31,300.3 7,846.1 8,252.3 16,098.3 (69.2) 42.1 (48.6)SBMA 8,727.9 19.9 8,747.7 2,666.9 34.9 2,701.7 (69.4) 75.4 (69.1)CDC 1,759.7 186.9 1,946.6 2,496.5 12.8 2,509.3 41.9 (93.2) 28.9

Total 88,551.3 6,069.5 94,620.9 15,339.6 8,568.4 23,908.0 (82.7) 41.2 (74.7)% Shareto Total 93.6 6.4 100.0 64.2 35.8 100.0Notes

1 Approved Investments raler to the prOject cost or commiited investmenls by Filipmo and foreign investors.2. Details may not add up to totals due to rounding

Sources of basic data: Board of Investments (BOI). Philippine EconomiC Zone Authority (PEZA). Subic Bay Metropolitan Authonty (SBMA). and Ctark D velopment Corp

- ..- - . .. - - ~~-

Table 11aTotal Approved Investments in the Information and Communication Technology(ICT)Industry by sub IndustryFirst Quarter 2008 to Second Quarter 2009(in million pesos)

al Includes Economic Zone Development and Industrial ParleNotes:

1. Approved Investments refer to lila project cost or commilted investments by Filipino and foreign investors2. Details may nol add up 10 totals due to rounding.

Sources of basic data: Board of Investments (BO)), Philippine Economic Zone Authority (PEZA), Suble Bay Metropolitan Authority (SB~A). and Clark Development Corporation (CDC).

2008Subsector 1st Quarter I 2nd Quarter 3rd Q~arter I 4th QuarterForeign IFilioino"l Total I Foreign IFilioino"1 Total I Foreign IFiIi~ no"l Total I Foreign IFilipino"l TotalManufacturing 1,689.2 0.0 1,689.3 - - - 84.0 - 84.0 174.5 - 174.5Trade - - . - - - - - - - - -Telecomm. - 17.0 17.0 - 7.0 7.0 1.9 - 1.9 - - -IT Services 2,535.4 1,270.4 3,805.8 1,844.9 174.9 2,019.9 2,3693 1 8.4 2,517.7 3,967.2 168.2 4,135.4Total 4,224.6 1,287.4 5,512.0 1,844.9 181.9 2,026.8 2,455.2 1 8.4 2,603.6 4,141.7 168.2 4,309.~% Share toTotal 76.6 23.4 100.0 91.0 9.0 100.0 94.3 5.7 100.0 96.1 3.9 100.E

2009 Growtt RateSubsector 1st Quarter I 2nd Quarter Q2 2008- R2 2009Foreign [Filipino"l Total I Foreign IFilipino"1 Total Foreign IFilipi 0"1 Total

Manufacturing - - - - - . . . -Trade . 1.2 1.2 - . . - - -Telecomm. . 4.0 4.0 - . - . - -IT Services 2,173.2 342.8 2,516.0 6,395.2 108.9 6,504.1 246.6 (3 .8) 222.0Total 2,173.2 348.0 2,521.2 6,395.2 108.9 6,504.1 246.6 (4 .1) 220.9% Share toTotal 33.4 5.4 38.8 98.3 1.7 100.0

Table 11bTotal Approved Investments in the Information and Communication Technology(lCT)Industry by sub industryFirst Semester 2008 to First Semester 2009(in million pesos)

Approved Investments in leT Grow1h ateSubsector First Semester 2008 I First Semester 2009 S12008-S 2009Foreign IFilioino"l Total I Foreign IFilipino"1 Total Foreign I Filioin ,,[ Total

Manufacturing 1,689.2 0.0 1,689.3 - - - . - .Trade - - - 1.2 1.2 - . -Telecomm. 24.0 24.0 - 4.0 4.0 - (83. ) (83.3)IT Services 4,380.3 1,445.3 5,825.6 8,568.4 451.7 9,020.1 95.6 (68. ) 54.8Total 6,069.5 1,469.3 7,538.8 8,568.4 456.9 9,025.3 41.2 (68. ) 19.7% Share toTotal 80.5 19.5 100.0 94.9 5.1 100.0

32

Table 12aProjected Employment on Approved Investments in the Information and Communi alion Technology(ICT)by sub industryFirst Quarter 2008 to Second Quarter 2009

2008 20 9 Percent (;i'oWll1RateSub-industry

I I to Total Q22008.Q1 02 Q3 04 Total 01 02 02 2009 02 2009Manufacturing 1,909 - 70 47 2,026 - - - -Trade - . - . - 15 - - .Telecomm. 40 5 39 - 84 4 . - -ITServices 10,647 12,685 7,731 12,293 43,356 14,267 17,974 100.0 41.7Total 12,596 12,690 7,840 12,340 45,466 14,286 17,974 100.0 41.6Notes:

Delails may no! add up to totals due 10 rounding.

Sources of basic data: Board of Investments (BOI), Philippine !':conomic Zone Aulhority (PEZA),Subic Bay Metropolitan Aur110rity (SBMA) and Clark Development Corporation (CDC).

Table 12bProjected Employment on Approved Investments in the Information and Communic ion Technology(ICT)by sub industryFirst Semester 2008 to First Semester 2009

Projected EmploymentGrowthPercent toRateSub-industry Totar Sem1Sem1 2008 Sem1 2009 2009 Sem1 2008 -

Sem1 2009

Manufacturing 1,909 - - .Trade - 15 0.0 .Telecomm. 45 4 0.0 (91.1)ITServices 23,332 32,241 99.9 38.2

Total 25,286 32,260 100.0 27.6Notes:

Details may not add up to totals due 10 rounding.

Sources of basic data: Board of Investments (BOI), Philippine Ec-onomic Zone Authority (PEZA), I


33

Table 13a

Balance of Payments Foreign Direct InvestmentsFirst Quarter 2008 to Second Quarter 2009(in mi11ion pesos)

2009

01 02 03 04 Total 1' 02P

Percent toTotal 022009

Growth Rate02 2008 toQ22009

Non-Residents' Investments in the Phi/so 8,987.1 16,532.1 25,261,9 12,831.3 63,612.5 1,6 3.3 40,937.3 100.0 147.6Equity Capital, net 7,268.6 8,971,2 28,812.3 11,669.2 56,721.3 2,3 02 45,4773 111.1 406.9Reinvested Earnings '" (10,0387) 2,633.8 5,006.9 (871.6) (3,269.7) 1.9 6.3 2,299.5 5.6 (12,7)Other Capital, net 11,7573 4,927.1 (8,557.2) 2,033,6 10,160.8 (2,6 3.2) (6,839,5) (167)r revisedp preiiminary

aJ Data includes reinvested earnings of local banks and non-financiai corporations,

Reinvested Eamings of non-finanCla! institutions were derived from preiiminary results of the foreign direct investment (FOil surv y.Notes:

1. Balance is derived by deducting assets from liabiiities.

2. Exchange rate used was based on Ihe monthly average buying and selling rate, Details may not add up to totals due to rounding.3. Concepts and coverage conform generally to the recommendation of the BPMS which was adopted by the BSP starting with the 199 data.Sources of Basic Data. Department of Economic Statistics (DES}, Sangko Sentrai ng Pllipinas (SSP}

Figure 13aBalance of Payments FDI


40,937.345,477.3

4,927 .

GQ22008

002 2009

ReinvestedEarnings

2,633.8

2,299.5

Equity Capital,

ne'

8,971.

0,0

Non.Residents'(10,000.0) Investments in the

PhHs.

50,000.0

40,000.0

• 30,000.00••~c 20,000.0 16,532.~'e

10,000.0.E

34

. ~-..... . "

Table 13bBalance of Payments Foreign Direct InvestmentsFirst Semester 2008 to First Semester 2009(in million pesos)

66.7194.3

GrowthRate

100.0112.3

9.9(22.2)

Percent toSem12009

42,5 0.647.7 7.44,2 5.8(9.4 2.7)

Sem1200 p

25,519.216,239.9(7.405.0)16,684.3

Sem12008

Non.Residents' Investments in the Phils.Equity Capital, netReinvested Earnings <11

Other Capital, netp preliminary

aJ Data includes reinvested earnings of local banks and non-financial corporations.

Reinvested Earnings of non-financial institutions were derived from preliminary results of the forei n direct investment (FOI) survey.Notes:

1. Balance is derived by deducting assets from liabilities.

2. Exchange rate used was based on the average buying and selling rate for the quarter. Details may not add up to lola Is due to rounding.

3. Concepts and coverage conform generally to the recommendation of the BPMS which was adopte by the SSP starting with the 1999 data.Sources of Basic Data: Department of Economic Statistics (DES), Bangko Senlral ng Pilipinas (SSP).

---. ----------._---- ------._- --------_.Figure 13b

Balance of Payments FDIFirst Semester, 2008 and 2009

DSem12008DSem12009

60,000.0 47,787.4

15,000.0

45,000.0

16,684.3. - ..

..• -'-.-(7~:~. ,1

Equity Capital, vest dnet Earnings

16,239. . ..

42,540.6

25,519.2


Phi Is.

0.0

(15,000.0)

IIIoIII

[ 30,000.0c:~'S

35

Table 14a

Balance of Payments Foreign Direct InvestmentsFirst Quarter 2008 to Second Quarter 2009(in mi11ion US$)

2008' 2009

Q1 Q2 Q3 Q4 Total Q1' Q2Percent toTotal Q22009

Growth RateQ2 2008 to Q2

2009

121.2362.4(21.3)

100.0111.05.6

(16,6)

854.0948.048.0

, (142.0)

38.048.040.0(50.0)

1,425.01,256.0(92.0)261.0

265.02410(18.0)

42.0

555.0633.0110.0(188.0)

386.0205.061.0120.0

219.0177.0(245.0)287.0

Non-Residents' Investments in the Phils.Equity Capital, netReinvested Earning~Other Capital, net

r revised

p preliminary

aI Data Includes reinvested earnings of local banks and non-financial corporations.

Reinvested Earnings Of non-financial institutions were derived from preliminary results of the foreign direct investment (FDI) urveyNotes:

1. Balance is denved by deducting assets from liabilities.

2. Exchange rate used was based on the average bUYing and selling rate for the quarter. Details may not add up to totals due to ro ndlng.3. Concepts and coverage conform generally 10 the recommendation of the BPM5 which was adopted by the BSP starting with the 999 data.Sources of Basic Data: Department of Economic Statistics (DES). Bangko Sentral ng Pilipinas (BSP)

._----~---"--------~---._,_ .._.

854.0

205.0

948,0

OQ22008

DQ22009

net142.0)

120.0

ReinvestedEarnings

61.0 48.0

Equity Capital, net

386.0

Figure 14aBalance of Payments FDI



Phils.

1200.0

1000.0

~ 800.0

'"" 600.0c~

400.0'e.5

200.0

0.0

(200.0)

"'--------

36

.~:~,..,:;---

Table 14b

Balance of Payments Foreign Direct InvestmentsFirst Semester 2008 to First Semester 2009(in million US$)

47.4160.7

GrowthRate

Percent toSem12009

100.0111.799

(21.5)

d up to lolals due to rounding.the SSP starting wilh the 1999 dala

irecl inveslmenl (FOI) survey.

892.0996.088.0

(1920)

Sem12009'

605.0382.0(184.0)407.0

Sem12008

Non-Residents' Investments in the Phils.Equity Capital, net

Reinvested Earnings al

Other Capital, netp preliminary

aJ Data includes reinvested earnings of local banks and non.financial corporations.

Reinvested Earnings of non-financial institutions were derived from preliminary results of the foreignNotes:

1. Balance is derived by deducting assets from liabilities.

2. Exchange rale used was based on the average buying and selling rate for the quarter, Delails may not a3. Concepts and coverage conform generally to the recommendation of the BPMS which was adopted bSources of Basic Data: Department of Economic Statistics (DES), Bangko Sentral ng Pilipinas (SSP).

Figure 14bBalance of Payments FDI

First Semester, 2008 and 20091,300.0

1,050.0892.0

••• 800.0U>::> 605.0c

~550.0

E,E 300.0

50.0

(200.0) Non-Residents'Investments in

the Phils.

996.0

382.0 ~'.. ',

Equity Capital,net

QSem12008

DSem12009

4 7.0

88.0(192.0)

a he Ca tal,net

37

ANNEXES

ANNEXA

Technical Notes

Concepts/Coverage

1. One of the objectives of the FilS is to develop a syste that is comparableinternationally. As such, the Philippine FilS is adopting the Intern tiona I Monetary Fund(IMF) concept of Foreign Direct Investments as described in th Fifth Edition of theBalance of Payments (BOP) Manual, in all of its components, i e., the Register, theAnnual FDI Reporting System and the Consolidated Quarterly Rep rting System.

2. Foreign Direct Investments (FDI) as defined in the BOP Ma ual, are investmentsmade to acquire a lasting interest by a resident entity in one eco omy in an enterpriseresident in another economy. The purpose of the investor is have a significantinfluence, an effective voice in the management of the enterprise. , 0 operationalize thisdefinition, the FilS followed the benchmark definition of the Orga ization for EconomicCooperation and Development (OECD) which considers as direct investmententerprise an incorporated or unincorporated enterprise in which direct investor whois resident in another economy owns ten percent or more of th' ordinary shares orvoting power (for incorporated enterprise) or the equivalent (fo an unincorporatedenterprise). The ten percent cut-off in equity is used to distinguis' between direct andportfolio investments, which is not covered by the FilS at present. 1

3. Since the Philippines is more of a recipient of foreign investm 'nts, the FilS coversonly inward foreign direct investments. Specifically, this inc udes foreign directinvestments in Philippine corporations, partnerships and single prop ietorships.

4. Foreign direct investment flows refer to the new or additio 'ar investments paidby a foreign entity to a resident enterprise in another country duri ,g the period. In thecase of the Philippines, this covers; capital or equity contributio s/remittances fromabroad, reinvested earnings, technical fees and royalties convert d to equity, bondsand other debts converted to equity and imports converted to eqity. Specifically, theCQRS will report on approved FDI flows, registered FDI flows 'nd the balance ofpayments (BOP) FDI flows.

5. Approved foreign direct investments represent the am unt of proposedcontribution or share of foreigners to various projects in the count' as approved andregistered by the BOI, the PEZA, the SBMA and the CDC. Approved foreigninvestments do not represent actual investments generated ut rather foreigninvestment commitments which may come in the near future. This 'onsists of equity,loans and reinvested earnings. In the operationalization of com uting for approvedFDls as approved and registered with the Investment Promotion gencies (IPAs), allFDls including those with less than 10 percent of the ordinary share ,are included. Thereason is that approved FDls as rendered by the IPAs have long la ling interest unlikeportfolio investments,

6. Approved FDls in the Information and Communication Te hnology Sector(lCT) includes investment commitments in the manufacturing Of; ICT equipments,spare parts and accessories including professional, medica and scientificinstruments as well as ICT services e.g" wholesale trade of co puters, electronicparts and equipments; telecommunications; renting of computers :and other office

iii

• ~ __ .,,', Or _. , __ - --_.-... '-,'--'----- - ..

-~- ......•....•.'.....•.,.. -~-- ~- ,.

equipments computer services and other related activities.

7. Registered FDls only represent foreign equity investment or paid up capital anddoes not include intercompany loans. Hence, not all approve' FDls are translated intoregistered FDls since the former consist of intercompan • loans and reinvestedearnings. In addition, capital inflows from approved FDls are s' read or expected to befully implemented after five years or more, based on the e perience of investmentpromotion agencies.:

i

8. On the other hand, the BOP FDls cover cash and n I n-cash transactions onforeign direct investment flows that are coursed through, the banking system.Machinery, equipment and reinvested earnings, which are no cash transactions areincluded if data are available. .

Methodology and Sources of Data

1. The NSCB as the agency that coordinates all statistical ma 'ers in government hasbeen tasked by the IAC-FDIS with the preparation of the CQ S. The CQRS coversactual and approved foreign direct investments.

2. The investment promotion agencies generate data' n foreign investmentsmonthly. These agencies show "project cost" in reflecting a' proved or committedinvestments. For purposes of the CORS, the term approved i vestments is adopted.Not all of approved investments will materialize during the perio . There is a gestationperiod between approval and actual investments.

3. To arrive at total approved investments, the reported project osts of BOI, PEZA,SBMA and CDC are summed up for the quarter.

4. Total balance of payments foreign direct investments is obta ned from the Balanceof Payments (BOP) tables compiled monthly by the BSP. The OP provides the dataframework on all external transactions of the national econom : in which FDI is oneitem. Conceptually, the FDI flows in the BOP are consistent wth the IMF definition.Hence, these are taken as the global total of foreign investment inflow on a quarterlybasis. .

5. The SEC and BTRCP also report monthly foreign capital inv 'stments. SEC comesup with data on investments and number of non-FIA registe ed FDI corporations(foreign ownership is less than 40 percent) and FIA-regist red corporations (40percent and over foreign ownership), by country of investor and b industry. In the SEC,foreign investments refer to the foreign equity (paid-up) capital of the non-FIA and FIAregistered corporations. It should be noted, however, that regis ration with SEC andBTRCP does not translate into actual flows as captured by the BO of the BSP.

6. Hence, what are not reported at present are additional invest ents of existing FDIenterprises. SEC covers only that portion of existing FDI enter rises that apply foradditional authorized capitalization.

7. The International Operations Department (100) of the BSP re isters foreign directinvestments in cash or in kind in any enterprise organized or existi g under the laws ofthe Philippines. Registration of foreign investments with BSP is ot mandatory but itgives foreign investors the authority to source foreign exchange fr m the local bankingsystem to service capital repatriation and cash dividends/profits and other earnings

--------- =.- ~_.-_..

accruing to aSP-registered investments. As there is currentl no mandatory periodwithin which to register these investments, there is a time lag etween the registrationwith the BSP and the inflow of the investment funds or in the ca e of investment in kind,the receipt by investee firm of said investment. In some cases, his time lag could be ayear or longer.

8. Total approved investments include all Filipino and foreign investments which hasbeen granted approval by the promotion agencies, i.e., BOI, PE ,CDC and SBMA.

9. Due to the cut-off periods on data processing adopted in he preparation of thisreport, revisions for the immediately preceding quarters may be one in each issue.

ANNEX B

The Foreign Investments Information ystem

IThe Foreign Investments Information System (FilS) was started in 1991 as a project '_1to develop an integrated approach for generating and reI'orting foreign directinvestments (FDI) in the Philippines. !

Statistics on FDls are being reported/generated by a number of I gencies that carry outfunctions relating to management and monitoring of and/or p omotion for attractingforeign investments in the country, which has often resulte in inconsistent datageneration and interpretation because of differences in con epts, definitions andreporting periods adopted by the concerned agencies.

With the objective of resolving this problem and other issues n the generation andreporting of foreign investment statistics, the National Statistic I Coordination Board(NSCB) created An ad hoc Inter-Agency Group (lAG) in 1991 to onduct a study for theimplementation of the FilS.

The lAG published its First Report of the FilS Study in July 19 6 based on availableannual administrative data for 1991 and 1992. The report also re ommended a systemthat will operationalize the concepts and methodologies for dev loping and compilingforeign direct investment statistics in the Philippines context. T e report featured theresults of the 1991-1992 estimates of stock of FDI, and the co cepts, methodology,data system and institutional support needed to implement the FII .

Based on the recommendation in the FilS Study, the NSCB ere ted the Inter-AgencyCommittee on Foreign Direct Investments Statistics (IAC-FDIS) in September 1996through NSCB Memorandum Order No. 1-96 to rationalize a d integrate foreigninvestments data in all aspects including collection, processing an dissemination. TheIAC-FDIS is now composed of:

NSCBBoard of Investments (BOI)Bangko Sentral ng Pilipinas (BSP)Securities and Exchange Commission (SEC)Bureau of Trade Regulation & Consumer

Protection (BTRCP)Philippine Economic Zone Authority (PEZA)Subic Bay Metropolitan Authority (SBMA)Clark Development Corporation (CDC)National Economic and Development

Authority (NEDA)National Statistics Office (NSO).

ChairCo-ChaiMembeMember

MemberMemberMemberMember

MemberMember

The member agencies of the IACFDIS jointly implement the i stitutionalization ofthe FilS. The IACFDIS is currently implementing the secon component of the

, .Initial funding came from cooperating agencies. i.e .. NSCB, BOI, SSP, SE

funded the project sraning in 1993. and BTRCP. USAID

FilS, the Consolidated Quarterly Reporting System (CalRS), which has beenproducing the quarterly Reports on Foreign Direct Investmbnts in the Philippinessince 1997. The CQRS operationalizes the integration an\:! uniform reporting ofquarterly data on foreign investment reported by the variou~ concerned agencies.The quarterly Report on Foreign Direct Investments in thJ Philippines, which isapproved by the IACFDIS, is released to the public upbn submission to thePresident of the Philippines sixty days after the reference qu~rter.

Consolidated Quarterly Reporting systel

Ouarteny Reporton Fo~ign OirKt

In"es~ts

••

ForeignInvestmentStatistics

Fflrp.inn Jnvp.!\tmp.nt SfJ=lljl';li~

The other two components of the FilS are the Registry f Firms on ForeignInvestments and the Annual Reporting System. These three omponents will laterbe integrated to complete the FilS.

.v.

:t :,I :,

National Statistical Coordination Boar , .Economic Indicators and Satellite Accounts Diision

Economic Statistics Office

Romulo A. VirolaSecretary General

", .... '

Una V. CastroOfficer-in-charge, Office of the Assistant Secretary General

I

Raymundo J. TalentoDirector

Economic Statistics Office

Josephine P. FerreOfficer-in-charge, EISAD

Luzviminda S. MitraAileen S. OliverosFlorande S. PolisticoRaul A. Clavido

Magnolia C. San DiegoSupport Staff

SECOND QUARTER 2 09 2nd Qtr..pdf · National Statistical Coordination Board 1.1idlandBuendia Building 403 Sen. Gil Puyat Avenue Makau City 1200 Philippines. 17September 2009 TIle

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