Net inflows of foreign direct investments climbed 24.2 percent in the first three quarters to $8 billion from $6.5 billion a year ago, as investors considered the Philippines as one of the best places to invest in this year, the Bangko Sentral ng Pilipinas said Tuesday.
“Investment inflows continued, buoyed by investor confidence in the Philippine economy on the back of strong macroeconomic fundamentals and high growth prospects,” the BSP said in a statement.
Investments in debt instruments reached $5.5 billion, up by 19.6 percent from $4.6 billion recorded in the same period in 2017.
Net equity capital investments jumped 52.1 percent to $1.9 billion from $1.2 billion a year ago. Bulk of the equity capital placements during the period came from Singapore, Hong Kong, the United States, Japan and China.
These investments were channeled largely to manufacturing, financial and insurance, real estate, arts, entertainment and recreation and electricity, gas, steam and air-conditioning supply activities.
Reinvestment of earnings amounted to $614 million during the period.
Data showed that net inflows of FDIs reached $569 million in September, lower than $807 million in the same month last year. This developed as equity capital withdrawals of $187 million exceeded equity capital placements amounting to $69 million.
Equity capital infusions in September came mostly from the United States, Japan, Macau, Hong Kong and China. These went to real estate, manufacturing and electricity, gas, steam and air-conditioning supply activities.
Finance Secretary Carlos Dominguez III earlier said President Rodrigo Duterte had 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 said the increasing volume of FDIs supported the Duterte administration’s efforts to shift the economy from consumption- to investments-led growth, which would then help create decent, well-paying jobs for the country’s young, well-trained Filipinos entering the workforce in the coming years.
Foreign businessmen also brought a record $10 billion in 2017, up 21.5 percent from 2016. This year, the government expects net FDIs to hit $9.2 billion.
American financial and business news website Business Insider put the Philippines on the top of the list of 20 best countries to invest in this year.
Indonesia came in the second place, followed by Poland, Malaysia, Singapore, Australia, Spain, Thailand, India, Oman, Czech Republic, Finland, Uruguay, Turkey, Ireland, the Netherlands, the United Kingdom, Brazil, France and Chile.
The Duterte administration’s ambitious P8.4-trillion ‘Build, Build, Build’ program is expected to create more jobs and further spur economic growth in the years to come.