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FDI Update

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MikeLigalig.com:
Press Release: FDI Posts Net Inflows of US$752 Million in August 2018 & US$7.4 Billion in the First Eight Months of 2018

        Foreign direct investments (FDl) continued to post net inflows in August 2018, amounting to US$752 million, albeit 41.2 percent lower than the US$1.3 billion net inflows recorded in the same period last year.  Even as all FDl components registered positive balances, inflows were lower than the levels posted in August 2017. The bulk of the FDl net inflows for the month was in the form of investments in debt instruments (consisting mainly of intercompany borrowings/Iending between foreign direct investors and their subsidiaries/affiliates in the Philippines), which reached US$534 million. Net equity capital investments declined to US$172 million from US$652 million in the same month last year as gross placements (US$187 million from US$671 million) outweighed withdrawals (US$16 million from US$19 million). Equity capital infusions came mostly from Singapore, the United States, Japan, Hong Kong and China. These were invested mainly into firms engaged in manufacturing, real estate, electricity, gas, steam and air-conditioning supply, information and communication, and financial and insurance activities. Reinvest merit of earnings totaled US$47 million during the month.

        On a cumulative basis, FDl net inflows reached US$7.4 billion for the period January-August 2018, 31 percent higher than the US$5.7 billion net inflows registered last year. FDl inflows remained strong amid continued favorable investor sentiment on the Philippine economy on the back of the country's strong macroeconomic fundamentals and growth prospects. In particular, net equity capital investments grew more than twice to US$2 billion from US$990 million in 2017. This resulted as equity capital placements increased by 63.7 percent to US$2.2 billion, while withdrawals declined by 45.9 percent to US$196 million. Equity capital infusions during the period emanated mainly from Singapore, Hong Kong, the United States, Japan, and China. Over the first eight months, said investments were channeled mostly into firms engaged in manufacturing, financial and real estate, arts, entertainment and recreation, and electricity, gas, steam and air-condition in supply activities. Investments in debt instruments increased by 17.9 percent to US$4.9 billion from US$4.1 billion last year. Meanwhile, reinvest merit of earnings reached US$536 million during the period.

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