Noting the positive trend in foreign direct investments (FDIs) the past three months compared to their previous years’ levels, the Department of Trade and Industry (DTI) said it remains focused on further attracting significant investments in essential sectors and other high-growth industries.
Based on data from the Bangko Sentral ng Pilipinas released yesterday, net inflows in January surged 89.9 percent to $907 million from $478 million in the same month in 2023.
The DTI said the increase was driven in part by investments in the manufacturing, real estate, construction, and wholesale and retail trade sectors.
The increase in FDIs in January marks the third consecutive month of expansion, following growth of 28 percent in November and 30 percent in December, in a month-to-month comparison with the previous year.
“The surge in FDIs reflects the unwavering confidence and steadfast trust the global business community places in the Philippines’ economic potential. This only strengthens our commitment to further improve the country’s business environment to attract even more foreign investments, which in turn will create more jobs and sustain our economic growth,” said DTI Secretary Alfredo Pascual.
He said the DTI is leveraging the country’s strengths across key sectors such as manufacturing, real estate, construction, and wholesale and retail trade.
The upward trajectory in FDIs is primarily driven by a 173.2 percent increase in non-residents’ net investments in debt instruments, reaching $820 million from $300 million in January 2023. Reinvestment of earnings also saw a positive trend, rising by 16.4 percent to $99 million.
Although net equity capital placements, excluding reinvestment of earnings, saw a slight outflow of $11 million compared to net inflows of $93 million in January 2023, the report emphasizes the overall positive aspects.
Equity investments during this period came primarily from Japan and the United States, targeting strategic sectors for the Philippine economy.
The announcement comes ahead of the Trilateral Economic Ministers Meeting, scheduled for April 11, in Washington, D.C. where Pascual will meet with US Commerce Secretary Gina Raimondo, Japan’s Ministry of Economy, Trade and Industry Minister Ken Saito to explore new trade and investment avenues that promise to generate business, create jobs, and foster sustainability.
