The Philippines recorded $655 million in foreign direct investment (FDI) net inflows in October, marking a 29.6% decrease compared to the $930 million reported in the same period the previous year, as announced by the Bangko Sentral ng Pilipinas (BSP) on Wednesday.
The decline in FDIs was attributed to a 26.1% reduction in net investments in debt instruments, dropping from $682 million to $504 million. Additionally, nonresidents’ net investments in equity capital experienced a substantial 54.4% decrease, declining from $163 million to $74 million. Reinvestment of earnings also saw a 10.3% decline to $76 million from $85 million.
Equity capital placements during the month primarily originated from Japan, the United States, and Singapore, with investments directed towards the manufacturing, real estate, and financial and insurance sectors.
This decrease in FDI net inflows follows a similar trend observed in September. The Philippines has been trailing behind its regional counterparts in attracting foreign investments. Nevertheless, the government remains optimistic that recent changes to the country’s investment laws, specifically the removal of restrictions on foreign ownership, will contribute to a more favourable investment climate, fostering increased capital inflow.
