The Daily Manila Shimbun


Foreign direct investments grew 7 percent in February; hit $1.1b in Jan-Feb

May 10, 2017

Foreign direct investments (FDI) net inflows increased by seven percent in February  to $366 million from $342 million in the same period in 2016, the central bank said Wednesday. More than two-thirds of FDI net inflows were in the form of non-residents’ placements in debt instruments issued by local affiliates (intercompany borrowings) which increased by 160.7 percent to $255 million from $98 million in the previous year. Net equity capital infusion amounted to $45 million, as equity capital placements of $79 million more than offset the $33 million withdrawals. The bulk (84.3 percent) of gross equity capital investments were sourced from Japan, Hong Kong, and the United States. Equity capital investments for the period were channeled primarily to wholesale and retail trade; real estate; manufacturing; financial and insurance; and art, entertainment and recreation activities. Meanwhile, reinvestment of earnings grew by 11.3 percent to $66 million from $59 million in February 2016. Year-to-date, FDI net inflows amounted to $1.1 billion, representing an 11 percent year-on-year growth, in the first two months of 2017. Investment inflows continued as investors remain confident in the Philippine economy on the back of strong macroeconomic fundamentals. Net placements in debt instruments increased by 133.2 percent to $821 million from $352 million in the comparable period last year. Equity capital investments recorded net inflows of $93 million, as equity capital placements reached $142 million while withdrawals amounted to  $49 million. Equity capital placements during the period came mostly from Japan, Hong Kong, the United States, Germany, and Singapore. The placements were largely invested in real estate; wholesale and retail trade; financial and insurance; information and communication; and manufacturing activities. Reinvestment of earnings for the first two months of 2017 reached $137 million, higher by 3.3 percent from last year’s level. DMS