FDIs grew 56.7% in January

 

 

By Rose de la Cruz

 

Foreign direct investments grew by 56.7 percent or from $587 million in January 2017 to $919 million for the same period this year.

 

Investor outlook on the country’s economic performance remained positive on the back of strong macroeconomic fundamentals.

 

Net equity capital inflows, which accounted for the bulk of FDI during the period, rose more than eight times to $473 million from $58 million in the previous year. This was driven by the sevenfold increase in equity capital placements to $531 million, while withdrawals amounted to only $58 million during the month.

 

Equity capital placements were sourced largely from Singapore, China, Taiwan, Japan, and the United States. These capital infusions were invested mainly in manufacturing; financial and insurance; real estate; electricity, gas, steam and air-conditioning supply; and wholesale and retail trade activities.

 

Meanwhile, net investments in debt instruments issued by local affiliates, consisting of intercompany loans, declined by 16.7 percent to $381 million. Reinvestment of earnings also decreased moderately by 8.4 percent to $65 million during the period.

 

The Bangko Sentral said the FDIs were based on the Balance of Payments and International Investment Position Manual, 6th edition (BPM6) which uses the asset and liability principle in the compilation of FDI statistics.

 

Under the asset and liability principle, claims of non-resident direct investment enterprises from resident direct investors are presented as reverse investment under net incurrence of liabilities/non-residents' investments in the Philippines (previously presented in the Balance of Payments Manual, 5thedition (BPM5) as negative entry under assets/residents' investments abroad).

 

Conversely, claims of resident direct investment enterprises from foreign direct investors are presented as reverse investment under net acquisition of financial assets/residents' investments abroad (previously presented as negative entry under liabilities/non-residents' investments in the Philippines).

 

BSP statistics on FDI covers actual investment inflows, which could be in the form of equity capital, reinvestment of earnings, and borrowings between affiliates.

 

In contrast to investment data from other government sources, the BSP's FDI data include investments where ownership by the foreign enterprise is at least 10 percent.

 

Meanwhile, FDI data of Investment Promotion Agencies (IPAs) do not make use of the 10 percent threshold and include borrowings from foreign sources that are non-affiliates of the domestic company.

 

Furthermore, the BSP's FDI data are presented in net terms (i.e., equity capital placements less withdrawals), while the IPAs' FDI do not account for equity withdrawals.

Like us in Facebook

Features

Latest News

Empowering MSMEs in Dinagat Island province

  By Rose de la Cruz   Bangko Sentral ng Pilipinas is soon signing a memorandum of agreement with the local officials of the island province of... Read More...
Empowering MSMEs in Dinagat Island province

  By Rose de la Cruz   Bangko Sentral ng Pilipinas is soon signing a memorandum of agreement with the local officials of the island province of... Read More...
Bong still unsure of Senate run

Should he stay or should he go?  This is the question that Special Assistant to the President Christopher “Bong” Go is trying to answer and... Read More...
IMAGE In the know: Solar Philippines

Solar Philippines is currently the country’s – and Southeast Asia’s – largest solar-energy company. Founded in August 2013 by Leandro... Read More...
Wrong Dream Girl and Other Laughs

Wrong Dream GirlA FROG telephones the Psychic Hotline. His Personal Psychic Advisor tells him, "You are going to meet a beautiful young girl who will... Read More...
Confession Code and other laughs

Confession Code AN old priest who became sick of all the people in his parish who kept confessing to adultery said one Sunday, in the pulpit,"If I... Read More...
IMAGE PAGIGING MAKABAYAN

KAMAKAILAN ay tumawag ng atensyon ang plano ni Sen. Manny Pacquiao na maghain ng panukalang batas na naglalayon na isama bilang bahagi ng curriculum... Read More...
IMAGE PUTULIN ANG MONOPOLYO NG MERALCO!

SUPORTADO nang ibat-ibang consumer group kabilang na ang Institute for Consumer Research and Empowerment (ICORE) ang panukalang dapat putulin na ang... Read More...

Our Guests

Today625
Yesterday743
This week5345
This month16433
Total1055179

Visitor Info

  • Your IP: 54.166.141.69

Who Is Online

28
Online

Sunday, 23 September 2018
© 2016 OpinYon News Magazine Online. All Rights Reserved.

Please publish modules in offcanvas position.