Net inflows of foreign direct investments declined 9.6 percent in May to $364 million from $403 million a year ago, Bangko Sentral ng Pilipinas said Wednesday.
Data, however, showed that total investments in the first five months more than doubled to $3.9 billion from $1.6 billion in the same period last year, following a record $2.2-billion inflows in April.
Bangko Sentral said all FDI components recorded net inflows in May, with debt instruments posting net inflows of $220 million, up by 15.4 percent from $191 million a year ago.
Net equity capital recorded net inflows of $79 million, as equity capital placements of $86 million more than offset withdrawals of $8 million.
The bulk of equity capital placements in May came from Thailand, the United States, Hong Kong, Germany and Singapore. These were channeled mainly to real estate; manufacturing; wholesale and retail trade; and electricity, gas, steam and air0conditioning activities.
Meanwhile, reinvestment of earnings amounted to $65 million in May.
Bangko Sentral said net inflows in January to May hit $3.9 billion, as all FDI components registered increases in their net inflows.
“Specifically, debt instruments, which contributed largely to the increase in FDI during the period, grew by 143.7 percent to $2.1 billion from $878 million,” Bangko Sentral said.
“Investor sentiment was buoyed by the country’s sound macroeconomic fundamentals and its non-inflationary GDP growth, as well as positive growth prospects for the Philippine economy,” Bangko Sentral said.
Equity capital placements in the first five months of 2016 came mainly from Japan, Hong Kong, Singapore, the United States and Taiwan.
These were invested mainly in financial and insurance; real estate; manufacturing, construction; and accommodation and food service activities.