Foreign direct investments up 61.8% in September 2017

MANILA, Philippines – Foreign direct investments (FDI) hit net flows in September, a result that leaves inflows very close to the same level a year ago.

Bangko Sentral ng Pilipinas (BSP) data released on Monday, December 11, showed that FDI hit net inflows of $754 million in September, 61.8% higher than the $466 million recorded in the same month in 2016.

Net equity capital investments during the month increased by 31.8% to $182 million, while gross placements of $194 million offset withdrawals of $12 million.

Foreign capital for the month came mostly from the United States, Singapore, the Netherlands, China, and Japan. The foreign equity capital placements were mainly invested in construction; professional, scientific and technical; manufacturing; real estate and accommodation; and food service.

Investments in debt instruments issued by local affiliates, consisting of intercompany loans, grew by 75.2% to $513 million from $293 million in September 2016, while reinvestment of earnings expanded by 68% to $59 million during the month.

On a year-to-date basis, FDI posted net inflows of $5.8 billion, lower by 0.2% compared to the $5.9 billion seen for the same January to September period last year.

Net equity capital recorded lower inflows of $1.1 billion from $1.6 billion in January to September 2016, and came mainly from the US, Singapore, Japan, the Netherlands, and Hong Kong.

The foreign capital placements were largely invested in manufacturing; real estate; wholesale and retail trade; financial and insurance; and construction activities.

In contrast, investments in debt instruments grew by 13.1% to $4.2 billion while reinvestment of earnings for the first 9 months of 2017 reached $604 million, up 10.4%  from last year’s level. –