For the month of September alone, FDI showed a net inflow of $5.66 million, a 2.9 percent downtick from the posted $582 million in the same month a year ago.
Primary sources of equity capital placements were Japan, the United States, Singapore, China and South Korea.
Although foreign equity placements continue to flow inward in the first nine months, the pace of growth had been significantly slower this year than last year, bringing the cumulative figure far from the target.
Latest data from the Bangko Sentral ng Pilipinas (BSP) show foreign direct investments (FDI) during the period at only $5.11 billion, more than 40 percent short of the BSP’s $9 billion target.
“Net equity capital investments decreased as placements dipped by 45.7 percent to $1.2 billion (from $2.3 billion), while withdrawals increased by 58.7 percent to $607 million (from $382 million),” the BSP said.
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“The bulk of equity capital placements during the period emanated from Japan, the United States, Singapore, China and South Korea,” it added.
According to the central bank, the deceleration mirrors the adverse effects of the prolonged trade dispute between the US and China that has impacted the overall global growth outlook and prompted investors to remain on the sidelines as a result.
For the month of September alone, FDI showed a net inflow of $5.66 million, a 2.9 percent downtick from the posted $582 million in the same month a year ago.
“This was mainly due to the decline in non-residents’ net investments in debt instruments. However, the reversal of net equity capital investments from net outflows to net inflows mitigate the decrease,” the BSP explained.
Equity placements in September stood at $125 million versus the registered $69 million a year earlier.
Meanwhile, equity withdrawals amounted to $28 million, a significant improvement from the recorded $187 million in the same comparable period.
By country source, equity capital placements were sourced mainly from Japan, Taiwan, the United States, Hong Kong and Netherlands. These were heavily placed on financial and insurance, manufacturing and real estate industries.
Previously, the BSP projected FDI to hit $9 billion this year, a downward revision from previous goal of at least $10.1 billion.
BSP Governor Benjamin Diokno said policy uncertainty, particularly on the final form of the comprehensive tax reform program’s second package, prompted investors to take on a wait-and-see stance.
