Full-year FDI Reaches US$5.7 Billion in 2015

Manila—(PHStocks)—Bangko Sentral ng Pilipinas (BSP)—Foreign direct investments (FDI) stood at US$273 million in December 2015. This developed as investor sentiment remained positive amid the country’s favorable growth prospects.  More than half of the FDI net inflows during the month were investments in debt instruments, consisting largely of intercompany borrowing/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines which amounted to US$140 million. This level was seven times the US$20 million registered in December 2014.

The other FDI components also posted net inflows. Net equity capital infusion reached US$77 million as equity capital placements of US$97 million more than offset the US$20 million withdrawals. These equity capital placements were channeled to financial and insurance; manufacturing; real estate; electricity, gas, steam and air conditioning supply; and administrative and support services activities.  The bulk of equity capital investments during the period came mostly from Singapore, the United States, Japan, the Republic of Korea, and the Netherlands. Meanwhile, reinvestment of earnings amounted to US$56 million during the month.

For the year 2015, cumulative FDI net inflows reached US$5.72 billion, almost steady compared to US$5.74 billion net inflows recorded in 2014. Debt instruments posted lower net inflows (by 3.9 percent) at US$3.1 billion from US$3.3 billion.  Reinvestment of earnings also declined by 14.8 percent to US$747 million during the year. However, net placements in equity capital increased by 15.1 percent to US$1.8 billion from US$1.6 billion in the previous year, partially compensating for the declines registered in the other FDI components. Equity capital placements originated mainly from the United States, the Netherlands, Japan, the United Kingdom and Singapore. By economic activity, equity capital investments were infused mainly to manufacturing; financial and insurance; real estate; wholesale and retail trade; and construction activities.

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