Manila: Net inflows of foreign direct investments (FDI) went up by 4.4 percent from January to November 2024, Bangko Sentral ng Pilipinas (BSP) data showed. Data released on Monday indicated that FDI net inflows during this period reached USD8.6 billion, a rise from the USD8.2 billion net inflows recorded from January to November 2023.

According to Philippines News Agency, FDIs include investments by non-resident direct investors in resident enterprises, where the equity capital in the latter is at least 10 percent, as well as investments made by non-resident subsidiaries or associates in their resident direct investors. These investments can take the form of equity capital, reinvestment of earnings, and borrowings.

The BSP identified Japan, United Kingdom, United States, and Singapore as the top sources of FDIs during the period. The investments were mainly directed towards the manufacturing, real estate, and wholesale and retail trade sectors.

For November 2024 alone, the BSP reported that FDI net inflows amounted to USD901 million, a decrease of 19.8 percent from the USD1.1 billion recorded in November 2023. The central bank noted a 17.9 percent decline in nonresidents’ net investments in debt instruments, which fell to USD791 million from USD964 million in November 2023.

In addition, nonresidents’ net investments in equity capital, excluding reinvestment of earnings, saw a significant drop of 58.9 percent to USD35 million, down from USD85 million. However, nonresidents’ reinvestment of earnings remained broadly stable at USD74 million.

“The bulk of the equity capital placements in November 2024 came from Japan, the United States, and Singapore,” stated the central bank. These investments were primarily channeled into the manufacturing, real estate, financial and insurance, and administrative and support service industries.