Foreign direct investments up 59.1% in March – BSP

Foreign direct investments (FDI) in the Philippines amounted to $364 million in March, up 59.1 percent from $229 million a year earlier, the Bangko Sentral ng Plipinas (BSP) said Friday.

"This is one of the key results of the country's sustained improvements in its macroeconomic fundamentals, particularly in 69 consecutive quarters of positive growth, low inflation, strong banking system, and robust external payments positions," said Diwa Guinigundo, BSP deputy governor for Monetary Stability Sector, said in a separate text message.

Investments in debt instruments totaled $262 million, more than double the $122 million in the same comparable period.

"Foreign investments in debt instruments accounted largely for the increase in net FDI in March," the central bank noted.

Equity capital investments amounted to $135 million. Offsetting these placements were withdrawals of $82 million, the BSP noted.

Capital placements came mostly from Singapore, US, Hong Kong, Japan, and Taiwan.

"Non-residents took particular interest in existing entities in the Philippines through higher placements of mother companies in their local affiliates in the food, real estate, manufacturing, trading, and financial sector," Guinigundo said.

Reinvested earnings stood at $49 million, down 14.3 percent.

In the first quarter of 2016, foreign direct investments reached $1.3 billion, up 52.1 percent from $850 million year-on-year.

Reinvested earnings amounted to $181 million, down by 2.1 percent in the first three months year-on-year. – VDS, GMA News