BSP reports $746-M net FDI in February

By Lee C. Chipongian

The central bank said the Philippines registered a higher year-on-year net foreign direct investment (FDI) inflows of $746 million in February but on a year-to-date level, net FDI is down to $1.4 billion in the first two months.

MB file photo. MB file photo.

Net FDI for the month of February was up by 20.2 percent from $621 million in 2018, while the January to February net FDI was down by 15.7 percent compared to same time last year of $1.6 billion, according to the Bangko Sentral ng Pilipinas (BSP).

For the month of February, the BSP said that investment inflows were still in the net positive because of investor confidence, and that “investors remain confident in the Philippine economy on the back of strong economic growth prospects and sound macroeconomic fundamentals.”

As for the decline in year-to-date basis, the BSP said net inflows for the first two months were lower because of the 67.1 percent drop in non-residents' net equity capital investments.

This is as placements also fell by 31.5 percent while withdrawals grew by 236.5 percent, noted the BSP.

It also noted that equity capital placements for the January to February period came from investors located in Japan, China, South Korea, Mauritius, and the US. By economic activity, equity capital was invested in these sectors:

Financial and insurance; transportation and storage; real estate;
administrative and support service; and manufacturing industries.

For the first two months, the net placements in debt instruments increased by 12.9 percent year-on-year to $1 billion while the reinvestment of earnings rose by 10.1 percent to $155 million.

For the month of February alone, net equity capital investments boosted net inflows. It was up by 141.7 percent to $233 million. “This was due to the 126.3 percent increase in equity capital placements to $258 million that were sourced mainly from Japan, China, the United States, Singapore, and Switzerland,” said the BSP.

Equity capital was placed in these sectors: Transportation and storage; financial and insurance; manufacturing; real estate; and professional, scientific and technical industries.

In February, the BSP said reinvestment of earnings grew by 13.7 percent year-on-year to $79 million.

The non-residents' placements in debt instruments issued by local affiliates – or intercompany borrowings – was down by 4.5 percent to $435 million.