FDI post US$586M net inflows in March

FOREIGN direct investments posted US$586 million net inflows in March 2019, which is lower by 13.9 percent than the $681 million net inflows registered in the comparable period last year, the Bangko Sentral ng Pilipinas said.

This developed on account of the decline in net equity capital investments, as placements dropped to $126 million from $351 million in March 2018.

Equity capital placements during the month came mostly from Japan, the United States, Singapore and the Netherlands. These placements were largely invested in manufacturing, real estate, accommodation and food service, wholesale and retail trade and arts, entertainments and recreation.

Non-residents’ investments in debt instruments (consisting mainly of loans extended by parent companies abroad to their local affiliates) recorded an increase of 35.8 percent to $399 million from $294 million in 2018.

Reinvestment of earnings increased by 14.4 percent to $80 million during the period from $70 million a year ago.

On a cumulative basis, net inflows of FDI reached $1.9 billion in the first quarter of 2019, a decline of 15.1 percent from the $2.3 billion net inflows in the same period in 2018. This resulted from the lower net inflows of net equity capital, which amounted to $295 million from $887 million last year. In particular, equity capital placements declined to $568 million from $996 million, while withdrawals increased to $273 million from $109 million.

Equity capital infusions during the period came from Japan, China, the United States, Singapore and South Korea. These were channeled to the financial and insurance, real estate, transportation and storage, manufacturing and administrative and support service industries.

Net investments in debt instruments increased by 18.6 percent to $1.4 billion from $1.2 billion in the same quarter in 2018.

Reinvestment of earnings increased to $234 million during the quarter from $211 million in the same period last year. /