Foreign direct investment (FDI) net inflows into the Philippines grew by 12.1 per cent in January this year to reach 657 million US dollars from 586 million US dollars posted in previous year, the BSP said.
"This development, which was before the imposition of the community quarantine in the country due to COVID-19, reflects continued investor confidence in the Philippine economy, despite global economic uncertainties," the Bangko Sentral ng Pilipinas (BSP), central bank of the country, said in a statement.
The BSP on Wednesday said the increase in FDI during the month was boosted by net inflows of equity capital, amounting to $352 million, a reversal from net withdrawal of $43 million in January 2019.
In particular, the BSP said equity capital placements more than doubled to $373 million from $186 million, while withdrawals decreased by 90.7 per cent to $21 million from $229 million.
The BSP said equity capital placements during the month originated largely from the Netherlands and Singapore. "These were invested mostly in the manufacturing and real estate industries," the BSP added.
Meanwhile, the BSP said net investments in debt instruments issued by local affiliates -- consisting mainly of intercompany borrowings -- fell by 57.9 per cent to $233 million from $553 million a year ago.
Likewise, the BSP said reinvestment of earnings declined moderately by 5.1 per cent to $72 million during the month from 76 million US dollars.