FOREIGN direct investment (FDI) in the Philippines plunged 54.6 percent in March 2015 from a year earlier as all components of the measure registered lower inflows.
Foreign investors placed some $229 million of investment in various Philippine industries, down sharply from $506 million in the comparable year-earlier period, data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed.
Net FDI flows in March also registered a 36.2-percent decline from $359 million in February.
Cumulative FDI in the first three months totaled $851 million, down 50.4 percent from $1.71 billion on-year.
“Net inflows across all FDI components were lower,” the BSP said.
Intercompany borrowings or nonresidents’ net placements in debt instruments issued by local affiliates declined by 17.8 percent to $123 million in March from $150 million a year earlier.
Intercompany borrowings for the first three months dropped 54.6 percent to $412 million from $907 million.
Inflows into equity capital shrunk by 82.8 percent to $50 million from $289 million.
Placements fell by 79.2 percent to $85 million, while withdrawals amounted to $35 million.
Most of the equity capital investment originated from the United States, Japan, Singapore, France, and Germany and were channeled into the real estate; electricity, gas, steam and air-conditioning; manufacturing; administrative and support service; and financial and insurance sectors, the BSP said.
In January to March, equity placements posted a net inflow of $254 million – down 54 percent from $553 million on-year.
Reinvested earnings also eased to $57 million in March from $67 million a year earlier. On a cumulative basis, reinvested earnings dropped 27.7 percent to $185 million in the first three months from $256 million a year earlier.