• January-April FDI down by 2.8%, to $1.5 billion

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    Foreign direct investments (FDIs) for the first four months of 2013 were 2.8 percent lower than the figure 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.

    The April FDI posted the highest increase, rising to $202 million, reflecting the favorable investment climate.

    It was higher by 61.6 percent than the $125 million posted in the same month last year.

    The BSP said that by FDI component, gross equity capital placements rose to $189 million.

    It said the equity capital investments came from the United States, the United Kingdom, Hong Kong, Singapore and a multilateral organization.

    The FDIs went to financial and insurance activities, real estate activities, manufacturing, and mining and quarrying sectors.

    The central bank also noted that the 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 said that reinvestment of earnings amounted to $64 million in April 2013 as foreign investors chose to keep their earnings locally on expectations of sustained strong corporate performance.

    Non-residents’ 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.

    MAYVELIN U. CARABALLO

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