FDI net inflows surge to $754m in September

December 11, 2017

Foreign direct investments (FDI) net inflows reached $754 million in September, 61.8 percent higher than $466 million during the same period last year, the Bangko Sentral ng Pilipinas (BSP) said Monday.

Net equity capital investments during the month increased by 31.8 percent to $182 million, as gross placements at $194 million more than offset withdrawals of $12 million.

Foreign capital infusion came mostly from the United States (US), Singapore, the Netherlands, China, and Japan.

By economic activity, foreign equity capital placements were mainly invested in construction; professional, scientific and technical; manufacturing; real estate, and accommodation and food service activities.

Investments in debt instruments issued by local affiliates, consisting of inter-company loans, grew by 75.2 percent to $513 million from $293 million in September 2016.

Meanwhile, reinvestment of earnings expanded by 68 percent to $59 million during the month.

On a year-to-date basis, FDI posted net inflows of $5.8 billion, albeit lower by 0.2 percent than the $5.9 billion registered during the comparable period last year.

Equity capital investments during the period came from the US, Singapore, Japan, the Netherlands, and Hong Kong. Foreign capital placements were largely invested in manufacturing; real estate; wholesale and retail trade; financial  and insurance; and construction activities.

Net investments in debt instruments grew, however,  by 13.1 percent to $4.2 billion. Reinvestment of earnings from January to September reached $604 million, higher by 10.4 percent from last year’s level. DMS