MANILA, Philippines – Foreign direct investments posted net inflows in November 2019, but was not enough to lift the dismal figure for the 11-month period last year.
The Bangko Sentral ng Pilipinas disclosed on Monday, February 10, that FDI registered net inflows of $623 million in November, 14.6% higher than the $543 million in the same month in 2018. This was mainly due to increases in all FDI components. (READ: [ANALYSIS] The real score on foreign direct investments)
Bulk of equity capital placements during the month were sourced mainly from the United States, Thailand, Japan, and South Korea. Investments were channeled mostly to financial and insurance, and real estate industries.
FDI in November is only the third month in 2019 that posted an annual increase.
FDI from January to November 2019 amounted to $6.4 billion, 30% lower than the $9.2 billion recorded in the same period in 2018. The BSP attributed the decline to muted investor confidence due to a global slowdown.
Equity capital placements during the 11-month period emanated largely from Japan, the United States, Singapore, China, and South Korea. These were invested pramarily in financial and insurance, real estate, and manufacturing.
FDIs are investments where foreign companies have direct control over companies operating in the Philippines and are involved in daily operations. This is therefore more coveted than portfolio investments or “hot money,” as FDIs bring not just money, but also knowledge, skills, and technology. – Rappler.com