Net inflows of foreign direct investments jumped 51 percent in the first two months to $936 million from $622 million a year ago, as investors’ confidence was buoyed by economic growth prospects and sound macro-economic fundamentals, Bangko Sentral ng Pilipinas said Tuesday.
Equity capital placements contributed largely to the inflows in the two-month period, up by 119.1 percent to $449 million from $205 million a year earlier.
“This was due to the increase in equity capital placements by 92.2 percent to $471 million that emanated largely from Hong Kong, Spain, Bahamas, Taiwan and Japan,” Bangko Sentral said.
These inflows were channeled mainly to agriculture, forestry and fishing; financial and insurance activities; construction; manufacturing; and real estate activities.
Partly offsetting these placement were withdrawals of $22 million. Net investments in debt instruments—or inter-company borrowings from foreign direct investors by their subsidiaries/affiliates in the Philippines—increased 23 percent to $355 million.
Meanwhile, reinvestment of earnings reached $132 million in the two-month period.
Data showed net FDI inflows in February declined 2.9 percent to $349 million from $359 million a year ago.
Investments in debt instruments recorded lower net inflow of $98 million from $122 million in the same month last year.
Equity capital investments grew 6.9 percent to $192 million as equity capital placements reached $211 million while withdrawals amounted to $19 million.
Gross equity capital placements came mainly from Spain, Japan, Hong Kong, the United States and Germany.
Bangko Sentral said by economic activity, equity capital infusions were mainly channeled to construction; manufacturing; real estate; accommodation and food service; and electricity, gas, steam and air-conditioning supply activities.
FDI net inflows stood at $5.72 billion in 2015. Bangko Sentral expects net inflows to reached $6.3 billion this year, on the back of improving global economic conditions and robust domestic economy.
Bangko Sentral said the implementation of various private-public partnership projects, particularly in infrastructure, would give a strong signal to investors, boosting their confidence to invest in the country.
