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Investments jumped 143% to $1.6b in May—BSP

Net inflows of foreign direct investments in May jumped 143 percent to $1.6 billion from $677 million a year ago, reflecting investors’ confidence in the Philippine economy, the Bangko Sentral ng Pilipinas said Friday.

The Bangko Sentral said in a statement all FDI components yielded higher net

inflows during the month. About 80 percent of FDI net inflows were in the form of non-residents’ investments in debt instruments issued by local affiliates (intercompany borrowings), which surged 136 percent to $1.3 billion from $564 million in 2017.

Net equity capital investments increased more than five times to $241 million from $43 million during the same month last year. Equity capital placements amounted to $257 million while withdrawals continued to be low at $15 million.

“Equity capital placements were sourced primarily from Singapore, the United Kingdom, Germany, the United States and Japan. These were channeled largely to manufacturing; real estate; electricity, gas, steam and air conditioning supply; financial and insurance; and professional, scientific and technical activities,” it said.

Reinvestment of earnings amounted to $75 million, slightly higher by 5.7 percent from $71 million recorded in May 2017.

FDI net inflows rose 49 percent to $4.8 billion in the first five months from $3.3 billion in the same period last year, mainly on account of the expansion in net equity capital investments by 469 percent to $1.4 billion.

Gross equity capital placements grew more than four times to $1.5 billion, while withdrawals amounted to $139 million. Equity capital placements during the period emanated mainly from Singapore, Hong Kong, China, Japan, and the United States.

The placements were largely invested in manufacturing; financial and insurance; real estate; arts, entertainment and recreation; and electricity, gas, steam and air-conditioning supply activities.

Debt instruments increased 17.3 percent to $3.1 billion from $2.7 billion in the same period last year. Meanwhile, reinvestment of earnings amounted to $343 million during the period.

Earlier, the Finance Department said the increasing foreign direct investments in the country could be partly traced to the Duterte administration’s effective campaign against corruption and criminality. 

Topics: foreign direct investments , Philippine economy , Bangko Sentral ng Pilipinas , net inflows
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