FDI post $566 million net inflows in September

December 11, 2019

Foreign direct investments (FDI) recorded net inflows of $566 million in September, 2.9 percent lower than the $582 million net inflows posted in the same period last year, the Bangko Sentral ng Pilipinas ( BSP) said Tuesday,.

This was mainly due to the decline in non-residents' net investments in debt instruments.

But the reversal of net equity capital investments from net outflows to net inflows mitigated the decrease in net investments in debt instruments.

Net investments in debt instruments (consisting mainly of intercompany borrowings/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines) decreased by 36 percent to $395 million from $618 million.

Meanwhile, non-residents' net equity capital investments posted a 182 percent growth to $96 million from net equity capital withdrawals of $117 million as placements increased by 79.5 percent from $69 million to $125 million.

Withdrawals declined by 84.8 percent from $187 million to $28 million).

Equity capital placements during the period were sourced largely from Japan, Taiwan, the United States, Hong Kong, and Netherlands.

These Investments were channeled mainly to financial and insurance, manufacturing, and real estate industries.

Reinvestment of earnings declined by 9.4 percent to $74 million from $82 million in the same month last year.

On a cumulative basis, FDI for the first three quarters recorded net inflows of $5.1 billion, 36.9 percent lower than the $8.1 billion net inflows registered last year. DMS