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FOREIGN direct investments (FDI), which represent money used to put
up new businesses or expand existing ones in the country, hardly
grew last year, according to the Bangko Sentral ng Pilipinas (BSP).
In a statement, the BSP said cumulative net FDI
inflows reached $2.928 billion last year, or just $7 million higher
than the registered $2.921 billion in 2006 due to repayment of
intercompany loans.
Full-year net inflows of foreign equity capital,
meanwhile, reached $2.0 billion, or 52.6 percent higher compared
with $1.3 billion in 2006, while gross equity capital placements
expanded 28.2 percent to $2.2 billion during the year.
The central bank said investments were channeled
largely into electronics, health and chemical products, food,
automotive sensor and safety products, decorative crafts and molded
plastic products, cleaning products, international courier,
information technology development, multimedia service provider,
construction, mining, real estate, financial intermediation, and
agricultural industries.
The bulk of these inflows came from Japan, the
US, the United Kingdom, Germany, South Korea, Malaysia, and Hong
Kong.
The reinvested earnings account during the year
was up at $567 million from $485 million the year before, as foreign
direct investors continued to plough back a portion of their
earnings into local enterprises.
The other capital account, which consists
largely of intercompany borrowing or lending between foreign direct
investors and their subsidiaries or affiliates, registered a lower
net inflow of $341 million compared with $1.1 billion same period in
2006.
This developed as local affiliates settled loans
obtained from their parent companies abroad amounting to $1.5
billion.
-- Chino S. Leyco
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