Foreign direct investment (FDI) net inflows grew by 41.5 percent to reach US$961 million in January 2021 from US$679 million in January 2020.1,2 The increase in FDI during the month was supported mainly by the 116 percent expansion in non-residents’ net investment in debt instruments to US$535 million from US$248 million in the same month last year.3 This development reflects the investors’ optimism at the start of the year due in turn to the gradual reopening of the economy under the “new normal” condition, easing of lockdown measures, and positive news about the rollout of COVID-19 vaccines.
Similarly, non-residents’ net investment in equity capital increased marginally by 0.5 percent to US$351 million from US$350 million in January 2020. This resulted following continued inflows from new placements, amounting to US$362 million in January 2021 (from US$374 million last year), coupled with less withdrawals of US$10 million in January 2021 (from US$24 million in January 2020). Equity capital placements during the period emanated largely from Singapore, Japan, and the Netherlands and were channeled mostly to 1) financial and insurance, 2) manufacturing, and 3) professional, scientific, and technical industries. Meanwhile, reinvestment of earnings declined by 9.2 percent to US$74 million from US$82 million in January 2020.
Source: Bangko Sentral ng Pilipinas 11 April 2021 https://www.bsp.gov.ph/SitePages/MediaAndResearch/MediaDisp.aspx?ItemId=5746