Net inflows from foreign direct investment (FDI) rose anew in November 2005, posting a year-on-year growth of 140.5 percent, to reach US$178 million. This brought the cumulative level of net FDI inflows during the eleven-month period to US$1.1 billion, 70 percent higher compared to the US$624 million during the comparable period in 2004.
The continued strength in FDI inflows from January to November 2005 resulted mainly from increased equity capital placements of US$1.2 billion due in part to renewed interest by investors owing to the positive macro-economic developments (e.g., favorable corporate earnings reports, improved fiscal position, respectable economic growth, easing inflation rate). This cumulative FDI inflow was up by 24.3 percent from the US$925 million recorded a year ago. Equity capital placements were channeled mostly to the manufacturing and real estate sectors with the major investments coming from the U.S. and Hong Kong.
The growth in FDIs during the period was further boosted by the reversal to a net inflow in the “other capital” account (which essentially represents inter-company accounts between investee companies and their corresponding foreign direct investors) in the amount of US$78 million.