Metro Manila (CNN Philippines, October 11) — Foreign direct investments rose anew in July, according to data from the Bangko Sentral ng Pilipinas released Monday, and this was mainly led by an expansion in debt instruments while equity capital contracted by a sizable rate.
The central bank reported FDI inflows of $1.26 billion, a 52% jump from July last year and the highest since December 2019’s $1.36 billion.
Data showed debt instruments posted a hefty share, growing by 61.1% to $1.07 billion.
Net equity capital placements shrank by 58.3%, posting only $34 million from $81 million in July 2020. Equity capital withdrawals spiked by a whopping 634.7% to $57 million from only $8 million year-on-year . BSP noted that withdrawal more than offset the 2.6% increase in capital equity placements or fresh funds from $89 million to $91 million.
Most of the equity capital placements were from Japan, the United States, and Hong Kong, mainly funneled into manufacturing, real estate, along with the financial and insurance sectors.
The latest figures brought total FDIs for 2021 so far to $5.56 billion.
Year-to-date, equity capital posted $1 billion or a 12.4% decline, placements dropped by 9.5% to $1.22 billion, while foreigners withdrew 6% more or $223 million.
Debt instrument investments reached $3.88 billion in the seven months to July, higher by 78.7% annually.
Reinvested earnings reached $155 million in July, 87.1% higher than last year’s level. Cumulatively, these were tallied at $677 million growing by 19.3%.
Oxford Economics’ research briefing published hours before the latest BSP data classified the Philippines as among the countries in Asia-Pacific that are least likely to attract FDIs. It cited the country’s “poor” performance in infrastructure and business environment, and ease of doing business.
