The country’s foreign direct investments (FDI), which are invested in bricks-and-mortar enterprises that pay tax, flowed outward in October 2018 registering only $491 million, the Bangko Sentral ng Pilipinas (BSP) said on Friday.
“(FDI) registered $491 million net inflows in October 2018, 74.2 percent lower than the $1.9 billion net inflows recorded in the same month in 2017,” the BSP said.
According to the BSP, net investment of equity capital amounted to a mere $98 million, significantly lower than the $1.5 billion in 2017 from big ticket investments in October that year.
Majority of equity capital placements came from the Netherlands, the United States, Germany, Japan and Hong Kong. These were invested mainly in manufacturing, real estate, financial and insurance, electricity, gas, steam and air-conditioning supply and wholesale and retail trade activities.
Also, debt instrument investments for the month of October 2018 grew to $331 million from the listed $318 million in the same period a year ago while reinvestment of earnings likewise hiked by 8.6 percent to $62 million in October 2018.
For the January to October 2018 period, FDI net inflows fetched $8.5 billion, a 1.8 percent uptick from $8.4 billion in the same period the previous year while net investments in debt instruments grew by 18.6 percent reaching $5.9 billion in the same period.