MANILA: Foreign direct investment (FDI) net inflows into the Philippines grew by 12.1 percent in January 2020 to reach 657 million U.S. dollars from 586 million U.S. dollars posted in January 2019, the Philippine central bank said on Wednesday.
"This development, which was before the imposition of the community quarantine in the country due to COVID-19, reflects continued investor confidence in the Philippine economy, despite global economic uncertainties," the Bangko Sentral ng Pilipinas (BSP) said in a statement, reports Xinhua.The BSP said the increase in FDI during the month was boosted by net inflows of equity capital, amounting to 352 million U.S. dollars, a reversal from net withdrawal of 43 million U.S. dollars in January 2019.
In particular, the BSP said equity capital placements more than doubled to 373 million U.S. dollars from 186 million U.S. dollars, while withdrawals decreased by 90.7 percent to 21 million U.S. dollars from 229 million U.S. dollars.
The BSP said equity capital placements during the month originated largely from the Netherlands and Singapore. "These were invested mostly in the manufacturing and real estate industries," the BSP added.
Meanwhile, the BSP said net investments in debt instruments issued by local affiliates -- consisting mainly of intercompany borrowings -- fell by 57.9 percent to 233 million U.S. dollars from 553 million U.S. dollars a year ago.
Likewise, the BSP said reinvestment of earnings declined moderately by 5.1 percent to 72 million U.S. dollars during the month from 76 million U.S. dollars.