FDI inflows down in September — BSP data

Foreign direct investments (FDIs) into the country declined in September as there were less inflows in debt instruments during the month, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed.

FDI net inflows for the month stood at $626 million, down from $774 million in August, and $680 million the same month last year.

“The decline in FDI net inflows reflected the decrease in non-residents’ net investments in debt instruments, which more than offset the growth in their net equity capital placements,” the BSP said in an accompanying statement.

Net equity placements for the month increased to $187 million from $31 million in August and $33 million in September 2021, with bulk coming from Singapore, Japan, and the United States.

These were directed mostly into the financial and insurance; manufacturing; and real estate industries.

Meanwhile, net debt instruments slipped to $351 million from $577 million in August and $555 million the same month last year.

Year-to-date FDI net inflows were recorded at $6.713 billion, reflecting a 10.0% drop from $7.462 billion in the comparable period of 2021.

“FDI remained subdued amid lingering concerns on global economic slowdown, higher inflation, and the depreciation of the peso,” the BSP said.

Earlier this month, the Joint Foreign Chambers of the Philippines (JFC) said it targets $128-billion worth of FDIs into the Philippines by the end of 2030, citing legislative reforms.

Former President Rodrigo Duterte in March signed a law amending the Public Service Act, effectively allowing foreigners to fully own public services such as telecommunications and railways, among others.

He also approved amendments to the Retail Trade Liberalization Act, which removed the categorization of enterprises, and cut down the minimum paid-up capital of foreign retailers to P25 million from $2.5 million.

Among the sectors American businesses are looking at expanding into in the Philippines include energy, especially nuclear and green energy, technology, electronics, and agriculture, which are likely to be seen by mid-2023. — RSJ, GMA Integrated News