Philippine FDI Hits USD7bn in 11 Months in 2016

Banking Industry

Foreign direct investments (FDI) in the Philippines recorded net inflows of US$756 million in November 2016, higher by 59.4 percent than the US$474 million posted in the same period in 2015, according to the Bangko Sentral ng Pilipinas (BSP).

The bulk of the net inflows during the month was in the form of debt instruments (or intercompany borrowings), which amounted to US$544 million, about three times the US$185 million recorded in November 2015.

This more than compensated for the 34.7 percent decline in net equity capital investments to US$154 million from US$236 million.

In gross terms, equity capital placements rose by 77.9 percent to US$437 million while withdrawals increased by more than 28 times its level a year ago to reach US$283 million.

Philippine Bank Lending Slows in March – BSP
Philippine Inflation Eases Further in First Quarter – BSP

Equity capital infusion came mostly from Hong Kong, the United States, Taiwan, Germany, and Czech Republic.

These were invested mainly in arts, entertainment and recreation; financial and insurance; real estate; wholesale and retail trade; and professional, scientific and technical activities.

Reinvestment of earnings grew by 9.5 percent to US$58 million during the month.

On a year-to-date basis, net FDI inflows registered a year-on-year increase of 25.4 percent to reach US$7 billion for the first eleven months of 2016.

The continued FDI inflows were buoyed by investors’ confidence in the economy on the back of sound macroeconomic fundamentals and sustained growth potential.

PNB Savings Bank’s Net Income in Q1 up 29%
Philippine Stocks to Watch: Manulife, Alliance Select Foods, RFM Corporation

Net availments of debt instruments increased by 44.4 percent to US$4.5 billion from US$3.1 billion in the comparable period in 2015.

In addition, net equity capital investments grew by 3.4 percent to US$1.8 billion.

This developed as gross equity capital placements of US$2.4 billion exceeded withdrawals of US$555 million.

The bulk of equity capital placements emanated largely from Japan, Hong Kong, Singapore, the United States, and Taiwan, and was channeled mainly to financial and insurance; arts, entertainment and recreation; manufacturing; real estate; and construction activities. Reinvestment of earnings reached US$663 million during the period. –