Foreign direct investments (FDI) for the first four months of 2013 declined by 2.8 percent compared to the level recorded in the same period last year, the Bangko Sentral ng Pilipinas (BSP) said on Wednesday.
In a statement, the BSP said that cumulative FDI from January to April reached $1.5 billion.
Meanwhile, FDI rose to $202 million in April 2013 reflecting the favorable investment climate on the back of the country’s sound macroeconomic fundamentals.
The BSP also showed that the April FDI was higher by 61.6 percent compared to the $125 million posted in the same month last year.
It added that by FDI component, gross equity capital placements rose to $189 million.
The central bank explained that the said equity capital investments came from the United States, the United Kingdom, Hong Kong, Singapore and a multilateral organization.
It added that the FDI were directed to financial and insurance activities, real-estate activities, manufacturing and the mining and quarrying sectors.
The central bank also noted that these gross equity capital placements were partly offset by the $58 million withdrawals of investments, resulting in $131 million net inflows of equity capital during the month.
It continued that reinvestment of earnings amounted to $64 million in April 2013 as foreign investors opted to retain their earnings locally on expectations of sustained strong corporate performance.
Nonresidents’ net placements in debt instruments issued by local affiliates (or intercompany borrowings between foreign direct investors and their subsidiaries/affiliates in the Philippines) in the form of loans and debt securities reached $7 million in April.
“Parent companies abroad continue to lend funds to their local subsidiaries/affiliates to sustain existing operations or expand their businesses in the country,” it said.