FDI registers $569m net inflows in September: BSP

December 10, 2018

Foreign direct investments (FDI) registered $569 million net inflows in September, albeit lower than the $807 million net inflows in the same month last year, the Bangko Sentral ng Pilipinas (BSP) said Monday.

This developed as equity capital withdrawals of $187 million exceeded equity capital placements amounting to $69 million.

During the period, equity capital infusions largely came from the United States, Japan, Macau, Hong Kong and China.

The investments were channeled mostly to real estate, manufacturing and electricity, gas, steam and air-conditioning supply activities.

Debt instruments (consisting mainly of intercompany borrowings/lending between foreign direct investors and their  subsidiaries/affiliates in the Philippines) expanded by 24.3 percent to $609 million from $490 million in the same month last year.

Reinvestment of earnings amounted to $78 million during the month. 

For the first three quarters of  2018, FDI net inflows grew by 24.2 percent to $8 billion from $6.5 billion last year on account of the increases registered in all FDI components.

Investment inflows continued, buoyed by investor confidence in the Philippine economy on the back of strong macroeconomic fundamentals and high growth prospects.

In particular, investments in debt instruments reached $5.5 billion, an increase of 19.6 percent from the $4.6 billion in the comparable period in 2017.

Net equity capital investments also rose by 52.1 percent to $1.9 billion from $1.2 billion a year ago.

Bulk of the equity capital placements during the period came from Singapore, Hong Kong, the United States, Japan, and China. These investments were channeled largely to manufacturing, financial and insurance, real estate, arts, entertainment and recreation and 5) electricity, gas, steam and air-conditioning supply activities.

Reinvestment of earnings amounted to $614 million during the period. DMS