Net inflows of foreign direct investments (FDIs) continued their growth momentum in September 2021, recording a 30.4-percent expansion year on year to reach USD660 million from the USD506 million net inflows in September 2020.
This brought the cumulative FDI net inflows for the first three quarters of 2021 to USD7.3 billion, higher by 43.8 percent than the USD5.1 billion net inflows in the same period in 2020, data released by the Bangko Sentral ng Pilipinas (BSP) on Friday showed.
This was mainly on account of the 78.6 percent increase in non-residents’ net investments in debt instruments to USD5.3 billion from USD3 billion last year.
Further, reinvestment of earnings reached USD865 million, up by 12.3 percent from USD770 million a year ago.
Meanwhile, non-residents’ net investments in equity capital, other than reinvestment of earnings, dropped by 15.7 percent to USD1.1 billion from USD1.3 billion in January to September 2020.
Net investments in equity capital declined as placements contracted by 8.1 percent to USD1.5 billion from USD1.6 billion and withdrawals rose by 30.7 percent to USD337 million from USD258 million.
The bulk of the equity capital placements originated from Singapore, Japan, the United States, and the Netherlands.
These were invested mostly in manufacturing; financial and insurance; electricity, gas, steam, and air-conditioning; and real estate industries.
The FDI net inflows in September 2021 rose on the back of the 60.2-percent increase in non-residents’ net investments in debt instruments to USD538 million from USD336 million in the same month last year.
Likewise, reinvestment of earnings grew by 25.2 percent to USD89 million from USD71 million. (PNA)
