Bangko Sentral ng Pilipinas
MANILA (Mabuhay) — Foreign direct investments (FDI) registered net inflows of $464 million in November 2015, up 16.4 percent from a year earlier.
“The robust FDI net inflows during the month were underpinned by sustained investor confidence on the economy on the back of the country’s sound macroeconomic fundamentals,” the Bangko Sentral ng Pilipinas said on Thursday.
Intercompany borrowings contributed largely to the FDI net inflows. These were net placements by parent companies overseas in debt instruments issued by their Philippine-based affiliates.
The central bank noted intercompany borrowings expanded by 26.6 percent to $187 million from $148 million.
Net placements in equity capital rose by 11.2 percent to $224 million from $201 million.
This development reflected equity capital withdrawals of $10 million compared with the total placements of $234 million.
The bulk of equity capital placements came from the Netherlands, Republic of Korea, Hong Kong, Singapore, and United States.
“By economic activity, equity capital investments were channeled mainly to manufacturing, financial and insurance, real estate, wholesale and retail trade, and information and communication activities,” the central bank said.
Reinvested earnings increased by 7.5 percent to $53 million.
In the 11 months to November 2015, FDI registered net inflows $5.5 billion or 3.4 percent lower than the $5.6 billion recorded in the same period a year earlier.
“This was mainly on account of the 9.9 percent decline in net placements in debt instruments to $3 billion compared with $3.3 billion a year earlier, the central bank said.
Reinvestment of earnings also fell by 9.7 percent to $691 million.
“Net inflows of equity capital expanded by 13.5 percent due to the 25.6 percent increase in equity capital placements to $2.6 billion, which outweighed equity capital withdrawals of $807 million,” the central bank noted.
“The bulk of equity capital investments during the period – emanating largely from the United States, the Netherlands, Japan, the United Kingdom and Singapore – were channeled mainly to manufacturing, financial and insurance, real estate, wholesale and retail trade, and construction activities,” it added. (MNS)