Jobs generated by new investments down 50%

MANILA, Philippines - The number of jobs generated by new investments in the country went down by over 50 percent to 55,533 during the first six months of this year from 121,223 jobs created a year ago as first half investments plummeted by 71.63 percent.

Despite the investment downturn, the government has revised its initial investment target of flat growth to a possible five percent increase in investments.

Trade Secretary Peter B. Favila said that investments may grow by up to five percent this year as the world economy begins to pull out of the recession.

Investment approvals from the two attached agencies of the DTI, the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA) showed that investments from January to June amounted to P79.67 billion, down from the P280.81 billion recorded during the same period in 2008.

The approved investments involve 340 projects and are expected to provide direct employment to 55,533 workers.

Favila said that the country had a slow start in terms of investments but is expected to improve in the second half given the better economic standing of other economies.

Favila admitted that improvement in investment conditions may be slow but a modest growth may be seen as the world economy begins to pull out of a recession as shown by positive signs of generally improving economic and financial conditions in most economies worldwide.

Trade Undersecretary Elmer C. Hernandez said that the second quarter investments were in sectors that business communities continue to have faith in the country’s absorption of foreign direct investments (FDI). 

These sectors include electricity, gas and water supply with P29 billion; IT services with P6.48 billion; and manufacturing with P4.30 billion. Hernandez said that these sectors  have remained the country’s growth drivers as their Investment performance.

Local investors continue to be the major source of investment during the period with committed investments of P60.97 billion, or 76 percent of total while foreign investments account for P18.70 billion or 24 percent. Among foreign investors, Hong Kong businessmen topped the list for the period with P3.91 billion; Japan, P3.32 billion; US, P3.16 billion; and UK with P2.20 billion.

Among foreign investors, Hong Kong businessmen topped the list for the period with P3.91 billion, followed by the Japanese, Americans and British with P3.32 billion, P3.16 billion, and P2.20 billion, respectively.