MANILA - Foreign direct investments (FDIs) flowing into the country increased by 123.5 percent in January, the Bangko Sentral ng Pilipinas (BSP) said.
The net inflow in January 2016 of $587 million was more than double the $263 million in the same month last year.
“This developed as all FDI components recorded increases, signaling investor optimism in the growth potential of various local industries, as well as confidence in the country’s sound macroeconomic fundamentals,” BSP Governor Amando Tetangco Jr. said.
Net equity capital inflows jumped 10 times to $257 million in January this year from $25 million in January last year.
Equity placements increased nearly fivefold to $260 million from $53 million.
Withdrawals, meanwhile, went down 87.5 percent to $3 million from $27 million.
Bulk of the equity came from Hong Kong, the Bahamas, Taiwan, the US, and Singapore.
BSP said the fresh equity went to financial and insurance; real estate; electricity, gas, steam, and airconditioning supply; manufacturing; and information and communications activities.
Foreign direct investments in the Philippines, however, are still small compared with regional peers due to poor infrastructure, high power costs and foreign ownership restrictions in key industries. -- With Reuters