Net FDI inflow hits $102 M in Nov

MANILA, Philippines - Net foreign direct investments (FDI) hit a four-month high in November, but the year-to-date tally remained far below 2012 official forecast, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

FDI registered a net inflow of $102 million in November, preliminary data showed. This was the highest since July’s $108 million, but down 72.1 percent from $366 million a year ago.

A net inflow indicates more investments entered the country than left.

The latest figure brought the 11-month total to $1.233 billion, up 1.1 percent year-on-year. With just one record month left, the aggregate tally just accounts for 82 percent of BSP’s official outlook of $1.5 billion.

The central bank, in a statement, did not provide reason for the month’s drop, but attributed the slight increase in year-to-date FDI to the “encouraging macroeconomic environment” that had attracted foreign investors.

Broken down, equity investments, which accounts for the bulk of FDI, dropped in November, but remained in growth territory for the first 11 months.

Equity placements – consisting mainly of foreign companies’ infusions to their local offices – dipped 82.6 percent to $34 million in November.

This, nonetheless, contributed to the 173.1-percent rise in the cumulative amount of $1.281 billion.

The bulk of the investments came from the US, Australia, the Netherlands, Japan and British Virgin Islands.

Inflows were mainly channeled to the manufacturing, real estate, wholesale and retail, mining and quarrying and financial and insurance sectors.

On the other hand, reinvested earnings decreased to $40 million from $55 million in November. To date, this segment amounted to $176 million, down 48.2 percent.

Meanwhile, other capital account items more than doubled this year from 2011, the BSP said. This segment posted a net inflow of $28 million in November, up from $12 million in 2011.

For the first 11 months, this segment remained on the negative, recording a net outflow of $224 million, from $410 million in net inflow the previous year.

 â€œThe turnaround in the other capital account was due largely to resident companies’ repayment of their intercompany loans and extension of trade credits to their direct investors abroad, as well as lower intercompany loan availments,” the central bank explained.