Foreign direct investments down in July

ABS-CBN News

Posted at Oct 10 2017 07:14 PM | Updated as of Oct 11 2017 12:24 AM

MANILA - Net inflows of foreign direct investments (FDI) totaled $307 million in July 2017, 38 percent lower than the $493 million booked in the same month last year, the central bank said Tuesday.

The Bangko Sentral ng Pilipinas (BSP) said this was due mainly to the decline in investments in debt instruments.

Net FDI from January to July totaled $3.9 billion, down 16.5 percent from the same period last year.

This year's net equity capital, a component of the overall FDI, was also down 81.5 percent as of July given last year's high base.

The BSP expects FDIs this year to hit $8 billion. 

FDIs hit a record $7.9 billion in 2016, but the figure pales in comparison with Malaysia's $13.5 billion, Singapore's $61 billion and Vietnam's $12.6 billion because of the country's poor infrastructure, high power costs and foreign ownership restrictions in key domestic industries.

Economic Planning Secretary Ernesto Pernia has said the government should "drastically" cut the number of sectors and activities closed or limited to foreign investors to get more of the investment flows into Asia. -- with a report from Reuters