RECORD BREAKING TALAGA. Tumaas sa USD 10 Billion ang Foreign Direct Investments “FDIs” ng mga Foreigners na nag-invest sa Pilipinas sa Leadership ni Pangulong Duterte
The central bank registered a record-breaking $10-billion worth of net foreign direct investments (FDI) in 2017, up 21.4 percent year-on-year, with all major components posted positive on sustained investor confidence in the country’s economic growth path.
Net FDI in 2016 amounted to $8.28 billion. The full-year FDI tally also surpassed the Bangko Sentral ng Pilipinas’ (BSP) projection for 2017 of $8 billion.
“Investors continue to view the country as a favorable investment destination on the back of the country’s sound macroeconomic fundamentals and growth prospects,” according to the BSP. The government estimates a three-year growth trend of seven percent to eight percent.
The central bank said all major FDI components registered increases. These are equity capital, reinvestment of earnings, and borrowings between affiliates. The BSP statistics on FDI are actual registered investment inflows and the data includes investments where foreign ownership is at least 10 percent.
For December 2017 alone, net FDI however declined by nine percent to $699 million from $768 million. The month’s FDI fall was attributed to a 19.1 percent drop in net investments in debt instruments which amounted to $335 million.
Net placements of equity capital were also lower by 0.4 percent to $305 million in December. The gross equity capital investments totaled $328 million. These capital flows came from investors located in Singapore, Japan, the Netherlands, the US, and Luxembourg and channeled to productive sectors such as manufacturing, real estate, wholesale/retail trade, information/communication, and arts/entertainment/recreation activities.
Reinvestment of earnings, in the meantime, increased by 24.1 percent in December to $59 million.
For the January-December period, the BSP said net equity capital investments rose by 25.9 percent to $3.3 billion, with gross placements reaching $3.7 billion. This was more than withdrawals of $479 million during the period.
Equity capital placements originated largely from the Netherlands, Singapore, the US, Japan, and Hong Kong SAR, according to the BSP.
“By economic activity, equity capital placements were channeled mainly to gas, steam and air-conditioning supply; manufacturing; real estate; construction; and wholesale and retail trade activities.”
The net availment of debt instruments – these are mostly intercompany borrowings/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines – increased by 20.7 percent to $6 billion versus the previous year’s $4.97 billion.
The full-year reinvestment of earnings also went up by 9.3 percent to $776 million from $710 million.
The World Bank said the Philippines will remain the “fastest-growing economy in the ASEAN for this year until 2020.”
BSP Governor Nestor A. Espenilla Jr. said the country’s external position is manageable “amid global headwinds”.
“The robustness of the country’s external position is anchored by our large GIR (gross international reserves) and secondary buffers such as sustained FDIs, remittances and BPO receipts, along with investment grade-rating that guarantees ready market access for any equity and debt financing requirement,” said Espenilla.
By Lee C. Chipongian / Manila Bulletin
PH FDI hits record $10 B in 2017