March FDI inflows swell 142% to $167M

Net foreign direct investment (FDI) inflows swelled 142 percent in March as equity infusion more than doubled while withdrawals declined, the Bangko Sentral ng Pilipinas (BSP) reported Friday. BSP Governor Amando Tetangco Jr. announced net FDI inflows amounted to $167 million in March or $98 million lower than the $69 million inflows booked in the same month last year. "All FDI components yielded positive balances during the month," Tetangco stressed. Data showed that equity placements jumped 113 percent to $64 million in March from $30 million in the same month last year while withdrawals slowed down by 47 percent to $18 million from $34 million. Investor confidence The BSP said this year’s Q1 net FDI of $471 million is 16.6 percent lower than 2010’s first quarter totals because “investors remained cautious on account of uncertainties" emanating from Europe, the Middle East, North Africa and Japan. Most of the latest Q1 inflows of $277 million, consisted of intercompany borrowing and lending between foreign direct investors and their subsidiaries or affiliates in the country, according to BSP data. About $133 million was reinvested to local ventures. The BSP attributed this to investor confidence in the “economy's resilience amidst challenging global economic conditions." The BSP also said gross placements in equity capital totaled $121 million and these flowed to the real estate, manufacturing, and mining and quarrying industries. Withdrawals summed up to only $40 million, falling by 53.5 percent from last year’s first three months.-- OMG, GMA News