MANILA -- Foreign direct investments (FDI) posted USD586 million net inflows in March 2019, which is lower by 13.9 percent than the USD681 million net inflows registered in the comparable period last year.
This developed on account of the decline in net equity capital investments, as placements dropped to USD126 million from USD351 million in March 2018, the Bangko Sentral ng Pilipinas (BSP) disclosed in a statement on Monday.
Equity capital placements during the month came mostly from Japan, the United States, Singapore, and the Netherlands. These placements were largely invested in the 1) manufacturing, 2) real estate, 3) accommodation and food service, 4) wholesale and retail trade and 5) arts, entertainments and recreation industries.
Meanwhile, 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 USD399 million from USD294 million last year.
Reinvestment of earnings increased by 14.4 percent to USD80 million during the period from USD70 million a year ago.
On a cumulative basis, net inflows of FDI reached USD1.9 billion in the first quarter of 2019, a decline of 15.1 percent from the USD2.3 billion net inflows in the same period in 2018. This resulted from the lower net inflows of net equity capital, which amounted to USD295 million from USD887 million last year.
In particular, equity capital placements declined to USD568 million from USD996 million, while withdrawals increased to USD273 million from USD109 million.
Equity capital infusions during the period emanated mainly from Japan, China, the United States, Singapore, and South Korea. These were channeled largely to the 1) financial and insurance, 2) real estate, 3) transportation and storage, 4) manufacturing, and 5) administrative and support service industries. On the other hand, net investments in debt instruments increased by 18.6 percent to USD1.4 billion from USD1.2 billion in the same quarter in 2018. Reinvestment of earnings increased by 11.3 percent to USD234 million during the quarter from USD211 million in the comparable period last year. (PR)
