BSP PR
Foreign direct investments (FDI) posted net inflows of US$609 million in January 2019, albeit lower by 38.2 percent than the US$986 million net inflows recorded in January 2018. The decline in FDI net inflows reflected the 65.3 percent drop in equity capital placements to US$184 million during the month from US$531 million for the same period a year ago.
Equity capital placements during the month emanated mainly from Mauritius, South Korea, the United States, Singapore, and the Netherlands. These were channeled largely to the 1) financial and insurance, 2) administrative and support services, 3) real estate, 4) electricity, gas, steam and air-conditioning supply, and 5) information and communication industries. Further, the increase in equity capital withdrawals to US$229 million in January 2019 from US$58 million in January 2018 contributed to the decrease in FDI net inflows.
Equity capital withdrawals in January 2019 were mainly from Japan.
Meanwhile, net investments in debt instruments (consisting mainly of intercompany borrowings/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines) increased by 31 percent to US$577 million from the year-ago level of US$441 million. Likewise, reinvestment of earnings rose to US$76 million from US$71 million in the same month in 2018
