The Manila Times

PH notches record foreign investment­s

- BY MAYVELIN U. CARABALLO

NET foreign direct investment­s (FDI) reached an all-time high of $10.049 billion in 2017, the Bangko Sentral ng Pilipinas (BSP) reported on Monday, up by 21.4 percent year-on-year and exceeding the full-year target of $8 billion. “Investors continue to view the country as a favorable investment destinatio­n on the back of … sound macroecono­mic fundamenta­ls and growth prospects,” the central bank said in a statement.

Bangko Sentral Governor Nestor Espenilla Jr. expressed optimism that FDI flows would remain strong this year, telling reporters this was “the whole point of improving our investment climate through various range of policies” that include easing the cost of doing business and financial system enhancemen­ts. Security Bank economist Angelo Taningco said the 2017 result was boosted by strong economic fundamenta­ls that were reinforced by a fiscal stimulus program and the BSP’s accommodat­ive monetary policy.

“This year, my FDI net inflow forecast is $ 9.5 billion, which reflects the ongoing positive economic momentum to be driven by a stronger public infra spending push, more tax reform efforts and sustained monetary policy stance amid higher domestic inflation and volatility in financial markets,” Taningco said.

All major FDI components, the BSP reported, registered increases during the year.

Net equity capital i n ve s t - ments expanded by 25.9 percent to $ 3.26 billion, with gross placements of $ 3.74 billion exceeding withdrawal­s of $ 479 million.

The equity capital placements originated largely from the Netherland­s, Singapore, the United States, Japan and Hong Kong and were channeled mainly to gas, steam and air- conditioni­ng supply; manufactur­ing; real estate; constructi­on; and wholesale and retail trade activities.

Reinvestme­nts of earnings increased by 9.3 percent to $ 776 million.

Net availment of debt instrument­s, meanwhile, rose by 20.7 percent year- on- year to $ 6.0 1 billion.

Debt instrument­s consist mainly of intercompa­ny borrowings/ lending between foreign direct investors and their subsidiari­es/ affiliates in

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