BUSINESS FDI net inflows into Philippines up 33.7 pct in October 2019

BUSINESS

FDI net inflows into Philippines up 33.7 pct in October 2019

Xinhua

19:11, January 14, 2020

MANILA, Jan. 14 (Xinhua) -- Foreign direct investments (FDI) net inflows into the Philippines grew by 33.7 percent to 672 million U.S. dollars in October 2019 from the 502 million U.S. dollars recorded during the same period in 2018, data from the country's central bank said on Tuesday.

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Photo: CGTN

The Bangko Sentral ng Pilipinas (BSP) said this was mainly on account of the expansion in non-residents' net investments in debt instruments issued by local affiliates or inter-company borrowings by 60 percent to 534 million U.S. dollars from 334 million U.S. in 2018.

Meanwhile, the BSP said net inflows of equity capital slowed down to 58 million U.S. dollars from 98 million U.S. dollars in October 2018, following the decline in equity capital placements to 80 million U.S. dollars from 112 million U.S. dollars coupled with the increase in withdrawals to 22 million U.S. dollars from 14 million U.S. dollars.

Equity capital infusions during the month came mostly from the United States, South Korea and Japan, the BSP added.

According to the BSP, placements during the period were invested largely in real estate; financial and insurance; and manufacturing industries. Reinvestment of earnings amounted to 79 million U.S. dollars, 12.7 percent higher than the 71 million U.S. dollars recorded in October 2018, the BSP said.

For the period January to October 2019, the central bank said FDI net inflows reached 5.8 billion U.S. dollars. This, however, was lower by 32.8 percent from the 8.6 billion U.S. dollars posted in the same period in 2018, it added.

"The lower FDI net inflows reflect subdued investor sentiment due to the continued sluggish global economic activity," the BSP said.

The BSP said net investments in debt instruments decreased by 27.3 percent to 4.3 billion U.S. dollars from the 5.9 billion U.S. dollars during the same period in 2018.

Likewise, it said net equity capital investments dropped by 65.4 percent as placements fell by 44.9 percent to 1.3 billion U.S. dollars and withdrawals rose by 58.8 percent to 629 million U.S. dollars.

The BSP said the top country sources of equity capital placements during the period were Japan, the United States, Singapore, China, and South Korea.

"These were channeled mainly to financial and insurance, real estate, and manufacturing industries. Reinvestment of earnings rose by 12.5 percent to 825 million U.S. dollars during the period, the BSP added.

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