Foreign direct investment in PH slumps 31% in June

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FOREIGN direct investment (FDI) in the Philippines dropped 30.9 percent year-on-year in June as placements in debt instruments and reinvested earnings continued to decline, official central bank data showed on Thursday.

FDI in June stood at $383 million, down from $554 million in the same month last year, according to data released by the Bangko Sentral ng Pilipinas (BSP).

Cumulative FDI in the first six months of the year posted a sharper fall of 40.1 percent to $2.019 billion from $3.373 billion a year earlier.

 Month-on-month drop
Measured at the net level in June alone, FDI flows dipped 4.96 percent from the net level of $403 million in May.


By component, intercompany borrowings or non­residents’ net placements in debt instruments issued by local affiliates recorded the biggest fall of 75.9 percent in June, as inflows dropped to $102 million from $424 million a year earlier.

Reinvested earnings declined by 11.6 percent to $67 million from $76 million in the same comparable period.

Offsetting the declines were inflows into equity capital, which surged by 295 percent to $214 million from $54 million.

Placements in equity capital reached $308 million, exceeding withdrawals, which amounted to $94 million during the month.

Most of the equity capital investment originated from the United States, Singapore, Germany, Japan and Taiwan, and were channeled mainly into manufacturing, real estate, wholesale and retail trade, administrative and support service activities, and information and communication activities, the BSP said.

Cumulative fall
In the six months to June, intercompany borrowings slumped by 55.6 percent to $981 million from $2.209 billion.

Cumulative reinvested earnings declined 18.4 percent to $385 million from $471 million a year earlier.

Net equity capital placements reached a cumulative $654 million as gross placements of $858 million more than offset withdrawals of $204 million during the period.

The central bank expects the FDI net inflow to reach $6 billion in full-year 2015.

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1 Comment

  1. Aquino and the liberal party clown show are showing the world that they don’t have a clue, Stealing without penalty, infrastructure collapsing, investors can’t expect the rule of law to keep their investments safe or at least fair.

    Did they think the world was as gullible and dim witted as the citizen’s they continue to ignore ?