PH posts 4th straight month of weaker long-term investment inflows

Long-term equity capital entering the Philippines from overseas slowed for the fourth straight month in November 2018—a trend that reversed the record-high investment levels reported earlier that year, data from the central bank showed.

According to the Bangko Sentral ng Pilipinas, foreign direct investments recorded net inflows of $531 million in November 2018. This level was 45.9 percent lower than the $982 million net inflows posted in November 2017.

“The decline was due largely to the drop in net investments in debt instruments (consisting mainly of intercompany borrowings/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines), which amounted to $333 million from $724 million in the same month in 2017,” the central bank said.

Net investments of equity capital registered $137 million, which was 31.9 percent lower than the $202 million net equity capital inflows in November 2017. Equity capital placements during the month were sourced largely from Taiwan, the United States, Thailand, Luxembourg and the Netherlands.

As a result of these developments, foreign direct investments registered $9.1 billion net inflows in January-November 2018, 3.2 percent lower than the $9.4 billion recorded in the same period in 2017.