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Thursday, June 15, 2017
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MANILA – Foreign direct investment (FDI) reached $509 million in net inflows in March, up 30.6 percent from $390 million a year earlier, data released Tuesday by the Bangko Sentral ng Pilipinas showed.
In a statement, the central bank said investment in debt instruments or lending by parent companies abroad to their local affiliates to fund existing operations and business expansion contributed largely to net FDI inflows.
Investment in debt instruments increased by 75.1 percent to $445 million from $254 million, according to the BSP.
“Net equity capital investments amounted to $7 million as gross equity capital placements of $49 million more than offset the $42 million withdrawals,” it added.
The central bank noted that equity capital placements came mostly from the United States, Japan, Singapore, Hong Kong and The Netherlands.
“These placements were largely invested in real estate; manufacturing; financial and insurance; wholesale and retail trade; and professional, scientific, and technical activities,” the BSP noted.
Reinvestment of earnings grew by 16.1 percent to $56 million.
In the first quarter of the year, FDI posted $1.6 billion in net inflow, up 16.6 percent from $1.3 billion year-on-year.
“The sustained FDI inflows reflect investors’ confidence in the country’s economy on account of continued growth prospects and strong macroeconomic fundamentals,” the BSP noted.
Net investment in debt instruments more than doubled to $1.3 billion.
Equity capital investments posted net inflows of $101 million, lower than the $550 million recorded in the same period in 2016.
Equity capital infusions during the period – largely from Japan, the United States, Singapore, Hong Kong and Germany – were channeled to real estate; wholesale and retail trade; manufacturing; financial and insurance; and information and communication activities.
Reinvestment of earnings rose by 6.7 percent to $193 million compared to the level in the same quarter last year. (GMA News)
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