FDIs breach $1-billion mark as of end-July

Published by rudy Date posted on October 13, 2009

MANILA, Philippines – Foreign direct investments (FDIs) breached the $1-billion mark in the first seven months of this year, rising by 33.8 percent to $1.239 billion from $926 million in the same period last year.

“Foreign capital continued to pour into the Philippine economy, encouraged by the country’s sound macroeconomic strengths amid challenging global economic conditions and strains in foreign financial markets,” Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said.

Statistics showed that net equity capital infusions surged by 33.5 percent to $1.311 billion in the first seven months of this year from $982 million in the same period last year.

This after equity placements surged by 24.4 percent to $1.387 billion from $1.115 billion while equity withdrawals plunged by 42.9 percent to $76 million from $133 million.

“The improvement in FDI flows was primarily traced to the net equity capital infusion of $1.3 billion, which outweighed the net outflows in other capital account,” Tetangco said.

He pointed out that investments that were poured into manufacturing, real estate, construction, services, financial intermediation, mining as well as trade and commerce originated mostly from the United States, Japan, Hong Kong, and the Netherlands.

Data also showed that reinvested earnings for the first seven months of the year amounted to $74 million, a complete turnaround from the $92 million net outflow registered in the same period last year.

According to Tetangco, foreign investors were encouraged to retain part of their earnings given the favorable performance of domestic firms in the first half of the year.

Other capital account including intercompany borrowing or lending between foreign direct investors and their subsidiaries or affiliates in the Philippines reversed to a net outflow of $146 million from a net inflow of $36 million in the same period last year.

Monetary authorities attributed the reversal to higher trade credits extended to affiliates abroad and intercompany loan repayments to foreign direct investors.

For the month of July alone, FDIs went up by 8.1 percent to a net inflow of $347 million as against a net inflow of $321 million in the same month last year. This after equity capital infusions fell by 47 percent to $315 million in July from $600 million in the same month last year while other capital accounts posted a net inflow of $46 million from a net outflow of $371 million.

The BSP said the bulk of the FDI inflows in July was accounted for by US investment in a local beverage manufacturing firm. Traders said the transaction involved Pepsi-Cola Products Philippines Inc.

Although still expected to be positive, FDIs are projected to fall to $700 million this year from $1.4 billion last year as investors hold back their plans to invest in the Philippines in the midst of the global economic recession. –Lawrence Agcaoili (The Philippine Star)

July 2025

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July


3 July – International Day of Cooperatives
3 Ju
ly – International Plastic Bag Free Day
 
5 July –
World Youth Skills Day 
7 July – Global Forgiveness Day
11 July – World Population Day 
17 July – World Day for
International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons 


Monthly Observances:

Schools Safety Month

Nutrition Month
National Disaster Consciousness Month

Weekly Observances:

Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week

 

Daily Observances:

First Saturday of July:
International Cooperative Day
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