BSP : FDIs reached record high of $10B in Duterte's first full term

BSP : FDIs reached record high of $10B in Duterte's first full term

Good news again for the Duterte administration.

Last week the Philippines was one of the countries that was ranked number 1 “best countries” to invest in 2018 by the Business Insider.The country was ranked based on the scores of more than 6,000 business decision makers on a compilation of eight equally weighted country attributes: corruption, dynamism, economic stability, entrepreneurship, favorable tax environment, innovation, skilled labor, and in the field of technological expertise.

Finance Secretary Carlos G. Dominguez III cites the Philippines strong fundamentals alongside plans of ramp up infrastructure spending and the leadership of President Rodrigo Roa Duterte as the reasons for the ranking.  *
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And just recently Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. just made us believe more in this administration.

Espenilla said that Foreign businessmen brought in a record amount of investments into the country in the first full year of President Rodrigo Roa Duterte’s administration.

In a press statement the BSP Governor said foreign direct investment (FDI) inflows reached a record high of $10 billion in 2017, up by 21.4 percent from the year-ago level.

“Investors continue to view the country as a favorable investment destination on the back of the country’s sound macroeconomic fundamentals and growth prospects,” he said.

The BSP said said these equity capital placements – as opposed to short-term portfolio investments or the so-called “hot money” – originated largely from the Netherlands, Singapore, the United States, Japan and Hong Kong.

Economic activities and  equity capital placements were channeled mainly to gas, steam and air-conditioning supply; manufacturing; real estate; construction; and wholesale and retail trade activities.

All major foreign direct investment (FDIs) components registered increases during the year. In particular, net equity capital investments expanded by 25.9 percent to $3.3 billion, with gross placements of $3.7 billion exceeding withdrawals of $479 million.

Net availment of debt instruments (consisting mainly of intercompany borrowings/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines) rose by 20.7 percent year-on-year to $6 billion.

Reinvestment  of earnings increased by 9.3 percent to reach $776 million during the year of 2017.

Foreign Direct investments in December 2017 was registered at $699 million in net inflows. This was lower, however, by 9 percent from the level recorded a year ago due largely to the 19.1 percent drop in net investments in debt instruments to $335 million. Net placements of equity capital likewise declined moderately by 0.4 percent to $305 million.   *

Singapore, Japan, the Netherlands, the United States and Luxembourg are the countries were the equity capital infusions came and it reached $328 million.

The field of manufacturing; real estate; wholesale and retail trade; information and communication; and arts, entertainment and recreation activities were the recipients of these placements. Reinvestment of earnings grew by 24.1 percent to $59 million in December of 2017.

Report from PDI

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