Foreign direct investments (FDIs) in January 2008 posted net inflows totalling US$133 million, higher by 15.7 percent compared to the level recorded in the same month in 2007. All FDI components registered net inflows during the month.
The expansion in FDI net inflows was due mainly to higher equity capital infusion, which amounted to US$93 million, a reversal of the US$9 million net outflow in January last year. In particular, gross equity capital placements more than doubled to US$126 million. These were channeled largely into banking and investment firms, manufacturing (ship building and repair), services (radio and television studio production), construction (hotel and resort development), real estate and mining industries. The bulk of these inflows came from the U.S., Japan, Malaysia, and South Korea.
Net inflows of reinvested earnings reached US$23 million in January 2008. This however, was only half of the level recorded in January last year, as local banks repatriated more of their profits to their foreign investors.
The other capital account—which consists largely of intercompany borrowing/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines—also registered a net inflow of US$17 million. This was, however, lower compared to the net inflow of US$79 million in January 2007 due mainly to the repayment by subsidiaries of loans to their parent companies.