Foreign direct investments inch up in October
MANILA, Philippines – Foreign direct investments (FDIs) in October 2015 amounted to $451 million, or $6 million more than registered in the same period in 2014, the Bangko Sentral ng Pillipinas reported Monday, January 11.
The October figure reflect favorable investor sentiment, but it was still down in the first 10 months of last year, BSP said.
The net inflows were sustained amid uncertainties in the global financial markets brought about by the interest rate lift off in the US and the economic slowdown in China.
Equity placements plunged almost 50% to $109 million in October 2015 from $217 million in October 2014. Withdrawals surged 92.2% to $8 million from $4 million.
Bulk of equity capital placements came from Korea, Japan, US, Thailand, and Taiwan, data showed.
By economic activity, equity capital investments were channeled mainly to financial and insurance; real estate activities; manufacturing; administrative and support service, as well as electricity, gas, steam, and air-conditioning supply.
Earnings from foreign companies
Earnings of foreign companies operating in the Philippines and plowed right back into the country declined by 1.9% to $62 million in October 2015 from $63 million in October 2014.
Intercompany borrowings from foreign direct investors by their subsidiaries or affiliates in the Philippines surged 71.1% to $287 million in October from $168 million and helped offset the sharp drop in equity placements and higher withdrawals.
For the first 10 months last year, data showed FDIs recording a net inflow of $4.98 billion or 4.9% lower compared to $5.25 billion in the same period in 2014.
Equity capital investments increased by 13.9% or $1.54 billion from January to October 2015 on account of the 27.7% increase in gross placements to $2.34 billion, while withdrawals jumped 66.6% to $797 million from $478 million.
Equity infusions came largely from the US, Japan, the United Kingdom, the Netherlands, and Singapore and were channeled mainly to manufacturing; financial and insurance; real estate; wholesale and retail trade; and construction activities.
The BSP sees FDI inflows rising to $6.3 billion this year from the projected $6 billion last year amid the country’s strong macroeconomic fundamentals.
The implementation of much needed infrastructure projects under the public-private partnership (PPP) scheme is also seen to boost FDI inflows this year. (READ: Foreign direct investments seen to hit $6.3B in 2016) – Rappler.com