In their 4th Quarter 2011 FDI Report, the National Statistical Coordination Board announced that the Philippines reached the highest level of approved FDIs since 1996, reaching Php 256 billion in 2011. The 4th quarter of 2011 is the highest quarterly FDI turn out ever since the government started compiling consolidated approved FDIs, and as we’ve pointed out in previous posts, the manufacturing sector consistently accounts for the largest portion of investments in the Philippines. The NSCB reports:
“Manufacturing, a consistent top recipient of FDI commitments, again topped all other industries as it stands to receive 54.0 percent or PhP 89.5 billion. Real estate activities came in second with investment pledges valued at PhP 47.6 billion, contributing 28.7 percent, followed by electricity, gas, steam and air conditioning supply at PhP 20.4 billion or 12.3 percent share.”
But to me, the bigger story is the growth of Total Investments (both local and foreign) in the Philippines which reached record levels of Php 746 Billion, rising by 38% vs. 2010. Investment by Filipino nationals accounted for 65.7% of total investments. See NSCB’s report on Total Investments.
Last Feb 28, 2012, I attended another forum that talked about importance of Industry and Manufacturing in the Philippines, this time, a joint forum by the Asian Development Bank, Agence Française de Développement and the Japan International Cooperation Agency, attended by an impressive list of speakers led by Sec. Cayetano W. Paderanga, Jr. of NEDA, Neeraj Jain, Country Director, Philippines, ADB, Takahiro Sasaki, Chief Representative, JICA Philippines, Le Cabellec Luc, Country Director, AFD Philippines, Norio Usui, Senior Country Economist, ADB, Adrian S. Cristobal, Jr., Undersecretary, DTI, Emmanuel de Dios, Professor, School of Economics, University of the Philippines, Toru Yoshida, Representative, JICA Philippines, Guillermo M. Luz, Private Sector Chairman, National Competitive Commission, Lilia B. De Lima, Director General, Philippine Economic Zone Authority.
Download the forum agenda: 28 Feb ADB AFD JICA Joint Forum Agenda
This is the sixth forum I’ve attended since the 1st Manufacturing Summit in November, that raised our awareness of the importance of manufacturing in the Philipines. I wish to share with you two key presentations from the ADB-AFD-JICA Forum, with permission for JICA, ADB and Nomura.
Manufacturing related news continue to increase in February covering a wide range of topics, from the Automotive Manufacturing Summit, followed by reports from SEIPI on the record number of investments in the semiconductor and electronic sector, and more on Japanese interest in the manufacturing sector given new data from the JETHRO study on our improving attractiveness as a relocation site, and the release of a JICA-Nomura study on Philippine Industry and Manufacturing. But what I find interesting is a number of new manufacturing projects on new sectors: a Korean paper project, a Spanish dairy processing plant, new projects in tobacco, tropical fibers and on producing weighing scales. These are signs of the much needed diversification in the manufacturing industry.
A list of manufacturing related new in February 2012