Net foreign investments in RP jumps 32% in August

BSP data showed that net foreign direct investment (FDI) inflows reached US$711 million (nearly Bt25.1 billion) in August, up 32 per cent from $539 million in the same month last year.
The net inflows in August surpassed July’s $503 million, June’s $238 million and May’s $364 million. The August figure was, however, lower than the $2.244 billion in April.
In August, foreign investments in debt instruments or inter-company borrowings, which accounted for the bulk of FDI, grew by 44.2 per cent year on year to $636 million.
Equity capital, other than reinvestment of earnings, however, dropped by 78.2 per cent year on year to $8 million, even as placements of $49 million outpaced the $41 million in withdrawals. Net inflow in equity capital in August was also lower than July’s $23 million.
The central bank said gross equity capital placements mostly came from Hong Kong, Japan, the Netherlands, Singapore and the United States.
Equity capital was mainly infused into the following sectors: arts, entertainment and recreation activities; electricity, gas, steam and air-conditioning supply; manufacturing; real estate; and wholesale and retail trade.
Reinvestment of earnings increased by almost a tenth year on year to $67 million in August, also up from $63 million in July.
At the end of the first eight months, net FDI inflows totalled $5.406 billion, up 71.1 per cent from $3.159 billion during the same period last year.
“The sustained FDI inflows were buoyed by investors’ confidence in the economy on the back of the country’s sound macroeconomic fundamentals,” the BSP said in a statement.
Net debt instruments climbed by 94.4 per cent year on year to $3.417 billion.
As of end-August, net inflows of equity other than reinvestment of earnings grew 68.3 per cent year on year to $1.476 billion, as the $1.705-billion placements exceeded the withdrawals worth $229 million.