ASEAN KEY DESTINATIONS
FDI drops in Philippines prior to Aquino
In a statement, the Bangko Sentral ng Pilipinas (BSP) said FDI inflows in the first half of this year reached $732 million, or 42 percent lower than the $1.270 billion in the same period last year.
In June alone, the country enjoyed inflows of $128 million, a reversal of the $123 million outflows in the same month last year.
The Aquino administration managed to flesh out its policy directions only during the President's State of the Nation Address in late July.
The BSP said the other capital account-consisting of intercompany borrowing/lending between foreign direct investors and their subsidiaries in the country-recovered with a net inflow of $404 million from a net outflow of $193 million last year.
Among the sectors that benefited from inter-company borrowings were business process outsourcing (BPO) and utilities.
Equity capital also yielded a $106 million net inflow, with the majority of the investors coming from the US, Switzerland, Japan, the Netherlands, Singapore, Ireland and Hong Kong.
The BSP said investments were directed to manufacturing, services, real estate, financial intermediation, utilities, mining, transportation/storage sectors and hotels and restaurants.
Net equity capital was lower than the $1.5 billion recorded in the same period last year because of big-ticket investments in the first five months of 2009.
Reinvested earnings also registered net inflows of $222 million, significantly higher than the $7 million net inflows posted a year ago.
For 2010, the central bank revised its inflows projection to $2 billion from $1.8 billion earlier.
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