FDI net inflows reach $416M

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    Foreign direct investments (FDI) posted net inflows of $416 million in August 2019, albeit 45.1 percent lower than the $758 million net inflows recorded in the same period last year.

    Bulk of the FDI net inflows for the month were in the form of investments in debt instruments which reached $263 million from $534 million.

    Non-residents’ net equity capital investments dropped by 55.3 percent to $77 million from $172 million in the same month last year, as the decline in placements outweighed the decrease in withdrawals.

    Equity capital placements during the period came mostly from Japan, the United States, Hong Kong, Cayman Islands, and Singapore.

    These investments were channeled mainly to manufacturing, real estate, financial and insurance, information and communication, and wholesale and retail trade industries.

    Reinvestment of earnings expanded by 46 percent to $77 million from $53 million in the same month last year.

    On a cumulative basis, FDI recorded net inflows of $4.5 billion for the period January-August 2019, lower by 39.7 percent than the $7.5 billion net inflows registered last year.

    The ongoing uncertainty in the global environment continued to dampen investor sentiment, which caused postponements in investment plans.

    The decline in FDI resulted from the contraction in non-residents’ net investments in debt instruments by 32.5 percent to $3.3 billion and equity capital by 73.4 percent to $536 million from $2 billion.

    Net equity capital investments declined as placements dipped by 49.6 percent to $1.1 billion from $2.2 billion, coupled with the 195.6 percent increase in withdrawals to $578 million from $196 million.

    Equity capital placements during the period were sourced largely from Japan, the United States, Singapore, China, and South Korea.

    The industries that benefited from said capital infusions were financial and insurance, real estate, manufacturing, transportation and storage, and administrative and support service.