FDIs nearly halved in June — BSP

Foreign direct investments (FDIs)—investments made by foreign companies or individuals in the Philippines—were nearly halved in June from the same month a year ago, data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday revealed.

According to central bank data, FDIs posted net inflows of $430 million in June, reflecting a 48.5% decline from the $836 million the same month last year.

This was, however, higher than the $242-million net inflows recorded in May.

"Non-residents' investments in debt instruments (or lending by foreign companies abroad to their local affiliates to fund existing operations and business expansion) registered lower net inflows of $317 million from $570 million," the BSP said in an accompanying statement.

"Likewise, non-residents' net investments in equity capital decreased to $25 million from $184 million," it elaborated.

Most of the equity capital placements during the month came from Singapore, the United States, Japan, the Netherlands, and China.

These were then channeled mainly into real estate; manufacturing; financial and insurance; electricity, gas, steam, and air-conditioning supply; and transportation and storage industries.

The latest figures brought the year-to-date FDI inflows to $3.6 billion, 38.8% lower than the $5.8 billion registered in the first half of 2018.

"This resulted as net equity capital investments declined to $361 million as placements dipped by 50.8% to $860 million and withdrawals increased by 206.6% to US$499 million," said the BSP. — BM, GMA News