FDI posts net inflows of $752 million in August

November 12, 2018

Foreign direct investments (FDl) continued to post net inflows in August, amounting to $752 million, albeit 41.2 percent lower than the $1.3 billion net inflows recorded in the same period last year, the Bangko Sentral ng Pilipinas (BSP) said Monday.

Even as all FDl components registered positive balances, inflows were lower than the levels posted in August 2017, the BSP added.

The bulk of the FDl net inflows for the month was in the form of investments in debt instruments (consisting mainly of intercompany borrowings/Iending between foreign direct investors and their subsidiaries/affiliates in the Philippines), which reached $534 million.

Net equity capital investments declined to $172 million from $652 million in the same month last year as gross placements ($187 million from $671 million) outweighed withdrawals ($16 million from $19 million).

Equity capital infusions came mostly from Singapore, the United States, Japan, Hong Kong and China. These were invested mainly into firms engaged in manufacturing, real estate, electricity, gas, steam and air-conditioning supply, information and communication, and financial and insurance activities. Reinvest merit of earnings totaled $47 million during the month, the BSP said.

On a cumulative basis, FDl net inflows reached $7.4 billion for the period January-August 2018, 31 percent higher than the $5.7 billion net inflows registered last year.

Net equity capital investments grew more than twice to $2 billion from $990 million in 2017. This resulted as equity capital placements increased by 63.7 percent to $2.2 billion, while withdrawals declined by 45.9 percent to $196 million.

Equity capital infusions during the period emanated mainly from Singapore, Hong Kong, the United States, Japan, and China.

Over the first eight months, said investments were channeled mostly into firms engaged in manufacturing, financial and real estate, arts, entertainment and recreation, and electricity, gas, steam and air-condition in supply activities.

Investments in debt instruments increased by 17.9 percent to $4.9 billion from $4.1 billion last year. Meanwhile, reinvest merit of earnings reached $536 million during the period.DMS