MANILA – The Philippines booked $609 million in net inflows of foreign direct investments (FDI) in January, down 38.2 percent from the same month last year, according to central bank data.
The decline in FDI net inflows reflected a drop in equity capital placements and an increase in equity capital withdrawals, the Bangko Sentral ng Pilipinas said
Equity capital withdrawals in January 2019 were mainly from Japan, the BSP said.
FDI net inflows hit $9.8 billion last year, lower by 4.4 percent compared to the record $10 billion booked in 2017.
The Philippines opened the year with a double-digit drop in investments made by foreign companies or individuals in the country in January, dragged by the drop in equity capital placements during the month.
According to data released by the Bangko Sentral ng Pilipinas (BSP), foreign direct investment (FDIs) fell 38.2 percent to register an inflow of $609 million versus the $986 million inflow recorded the same month last year.
“The decline in FDI net inflows reflected the 65.3-percent drop in equity capital placements to $184 million during the month from $531 million for the same period a year ago,” the central bank said in an accompanying statement.
Equity capital placements for the month came mainly from Mauritius, South Korea, the United States, Singapore, and the Netherlands.
These were then channeled into financial and insurance; administrative and support services; real estate; electricity, gas, steam, and air-conditioning supply; and information and communication industries.
“Further, the increase in equity capital withdrawals to $229 million in January 2019 from $58 million in January 2018 contributed to the decrease in FDI net inflows,” said the BSP, with most capital withdrawals for the month coming from Japan. (GMA News)
