Bangko Sentral says 2013 foreign direct investments surged 20% to $3.86B

(Updated 5:46 p.m.) The Philippines registered $3.860 billion in foreign direct investments (FDI) in 2013, up 20 percent $3.215 billion from a year earlier, fueled by investor confidence on macroeconomic fundamentals, Bangko Sentral ng Pilipinas reported Monday.

 

Last year's foreign direct investments were beyond the $2.1 billion Bangko Sentral was aiming for.

 

“Net inflows were registered across all components of FDI. In particular, non-residents’ net placements in debt instruments issued by local affiliates increased by more than sixfold to $2.5 billion, accounting for more than half of the FDI in 2013,” Bangko Sentral noted.

 

Parent companies overseas lent to their Philippine affiliates mainly to finance existing operations and business expansion.

 

“Moreover, gross placements of equity capital of $2.5 billion more than offset withdrawals of $1.8 billion. As a result, net inflows of equity capital amounted to $664 million during the period,” according to Bangko Sentral.  

 

Bulk of the capital placements came from Mexico, Japan, the United States, British Virgin Islands, and Singapore, central bank data showed. These were placed into the manufacturing sector, water supply, sewerage, waste management and remediation, as well as the financial and insurance sector, real estate and mining and quarrying industries.

Still, Mapa noted the net FDI for 2013 was a welcome development as foreign investors see better prospects for the Philippines. 

"But it's a good sign that the government is building infrastructure projects with the private sector," he added.– VS, GMA News