Net inflows of foreign direct investments jumped 42.4 percent in the first half to $5.8 billion from $4 billion a year ago, the Bangko Sentral ng Pilipinas said Monday.
“The continued inflows of FDI indicate investor confidence in the Philippine economy on the back of strong macroeconomic fundamentals and growth prospects,” the Bangko Sentral said in a statement.
Net investments of equity capital by on-residents grew more than seven times to reach $1.6 billion. These came mainly from the 244.1-percent surge in equity capital placements to $1.7 billion, alongside the 46.9-percent decrease in withdrawals to $163 million.
Equity capital infusions in the first semester were sourced primarily from Singapore, Hong Kong, China, Japan, and the United States. These were invested mainly in manufacturing; financial and insurance; real estate; arts, entertainment and recreation; and electricity, gas, steam, and air-conditioning supply activities.
Higher investments in debt instruments were also recorded in the first half amounting to $3.8 billion, compared to $3.4 billion in the same period last year. Reinvestment of earnings rose to $420 million during the period.
Data showed that in June, FDIs recorded a net inflow of $831 million, up 9.2 percent from $761 million a year ago. This was boosted by non-residents’ net equity capital investments of $184 million.
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.
Finance Secretary Carlos Dominguez III earlier said President Rodrigo Duterte made the country a safer place for investors, with his campaign against corruption and criminality leading to a decrease in crime volume by 21.86 percent since the start of his administration.
Dominguez also said the increasing volume of FDIs supported the Duterte administration’s efforts to shift the economy from consumption- to investment-led growth, which would then help create decent, well-paying jobs for the country’s young, well-trained Filipinos entering the workforce.
Foreign businessmen brought a record $10 billion worth of FDIs into the country in 2017, up by 21.5 percent from the previous year. The government expects net inflows of FDIs to hit $9.2 billion this year.