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FOREIGN
direct investments (FDIs), the kind the government
prefers because it stays invested in the
Philippines
for the long haul, pushed higher by nearly 16 percent in
January to $133 million.
This was
lower than year-ago FDIs of $115 million, even though
optimism remains that these would hit $4.2 billion by
year-end.
The FDIs
were driven higher by a reversal to net equity-capital
inflows for the month, as well as by sustained net
reinvested earnings and by the net other-capital
accounts for the period.
According to Bangko Sentral Governor Amando M. Tetangco
Jr., there were far more net equity placements in
January than there were withdrawals, totaling $126
million and $33 million, respectively.
A year
earlier, gross equity-capital placements reached only
$59 million against withdrawals of $68 million.
Net
reinvested earnings, representing profits that foreign
firms generated but later plowed back into the business,
stood at $23 million during the month.
However,
this was lower than reinvested earnings a year ago
totaling $45 million and the year before of another $47
million.
The
lower net reinvested earnings in January resulted from
the higher repatriation of the profits of foreign bank
subsidiaries to their parent offices abroad, Tetangco
said.
“The
other capital account—consisting largely of intercompany
borrowing/lending between foreign direct investors and
their subsidiaries/affiliates in the Philippines—also
registered a net inflow of $17 million,” Tetangco also
said.
“This,
however, was lower than net other capital of $79 million
posted in January 2007 and another $155 million in
January 2006,” he quickly added.
Tetangco
said the bulk of net equity- capital inflows for the
month was invested in banking and investment companies,
in shipbuilding and repair facilities, radio and
television production outfits, hotel and resort-
development activities and in the real-estate and mining
companies in the country.
He said
the bulk of the FDIs originated from the United States,
Japan, Malaysia and from South Korea.
In a
related development, the BSP reported net outflow in
“hot” or portfolio investments totaling $40.79 million
in March as foreign fund managers took out $3.086
billion worth of placements.
Gross
inflows in March reached only $3.045 billion, on the
other hand.
This
resulted in net inflows of only $74.7 million in the
first three months. |
