Philippines exceeds foreign direct investments target for 2017

Chrisee Dela Paz
Philippines exceeds foreign direct investments target for 2017
The Bangko Sentral ng Pilipinas attributes the strong inflows to the country's sound macroeconomic fundamentals

MANILA, Philippines – The amount of foreign direct investments (FDIs) coming into the Philippines surged to $8.7 billion during the 1st 11 months of 2017, surpassing the full-year target of $8 billion set by the Bangko Sentral ng Pilipinas (BSP).

Data from the BSP released on Monday, February 12, showed that FDI net inflows amounted to $869 million in November 2017, higher by 16.9% than the $744-million level posted in the same month in 2016.

“This was due mainly to the 13.1% expansion in non-residents’ net placements in debt instruments issued by local affiliates (intercompany borrowings) to reach $604 million,” the country’s central bank said in a statement.

The FDI inflow in November 2017, however, was lower than the $2.017 billion recorded in October that year.

In November 2017 alone, net equity capital inflows grew by 38.7% to $210 million, as equity capital placements of $228 million more than offset the $18 million in withdrawals.

BSP data showed that bulk of gross equity capital investments came from Singapore, Hong Kong, Luxembourg, China, and the United States.

“These were channeled mainly to manufacturing; real estate; electricity, gas, steam and air-conditioning supply; construction; and wholesale and retail trade activities,” the BSP said.

Meanwhile, reinvestment of earnings amounted to $56 million in November 2017.

Finance Secretary Carlos Dominguez III had said the $1.3-billion deal between Energy Development Corporation and the consortium of Macquarie Infrastructure and Real Assets and Arran Investment Private Limited as well as Japan Tobacco Incorporated’s acquisition of Mighty Corporation would boost FDIs.

The BSP said the sustained FDI inflows reflected investor confidence given the Philippine economy’s solid macroeconomic fundamentals and growth prospects. –

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