By Lee C. Chipongian
The country’s net foreign direct investments (FDI) reached $869 million in November, 2017, up by 16.9 percent year-on-year due to continued investor confidence in domestic markets, the Bangko Sentral ng Pilipinas (BSP) yesterday said.
Overall, net FDI totaled $8.72 billion for the January-November period, higher by 20.1 percent year-on-year and more than BSP’s forecast of $8 billion for the entire year.
“The sustained FDI inflows reflected investor confidence given the Philippine economy’s solid macroeconomic fundamentals and growth prospects,” according to the BSP. The nine-percent growth in net placements in debt instruments of $5.2 billion boosted net FDI for the 11-month period.
On a monthly basis, the $869-million net FDI recorded in November came from the 13.1 percent growth in non-residents’ net placements in debt instruments issued by local affiliates or intercompany borrowings, amounting to $604 million.
Net equity capital inflows in November alone, in the meantime, rose by 38.7 percent to $210 million as equity capital placements of $228 million more than offset the $18 million withdrawals, said the BSP.
“The bulk of gross equity capital investments came from Singapore, Hong Kong, Luxembourg, China, and the US,” it added. These were channeled mainly to manufacturing; real estate; electricity, gas, steam and air-conditioning supply; construction; and wholesale and retail trade activities. Meanwhile, reinvestment of earnings amounted to $56 million during the month.
For the January-November period, net investments in equity capital went up to $2.8 billion or 55 percent from $1.8 billion in 2016. The BSP said this was “on account of the combined effect of higher equity capital placements ($3.3 billion from $2.4 billion) and lower withdrawals ($483 million from $555 million).”
The Netherlands, the US, Singapore, Japan, and Hong Kong were the main sources of equity capital infusions for the period. These placements went into sectors such as gas, steam and air-conditioning supply; manufacturing; real estate; construction; and wholesale and retail trade activities.
Reinvestment of earnings $717 million which was up 8.2 percent year-on-year.