Net FDI down 20% in January

(UPDATE) NET foreign direct investments (FDIs) fell by 20 percent in January 2025 to $731 million from $914 million a year earlier, the Bangko Sentral ng Pilipinas said late on Thursday, but were still an improvement from the $110 million recorded in December.

The contraction was primarily attributed to a 37.7-percent plunge in nonresidents' net investments in debt instruments to $519 million from $833 million in January 2024, which was mitigated by rebound in net investments in capital and higher reinvestments of earnings.

Net investments in equity capital totaled $88 billion for the month, from an $11-million net outflow a year ago, while reinvestments of earnings grew 36.0 percent to $125 million from $92 million.

The equity capital placements mostly came from Japan, the United States, Singapore and Malaysia, and were mostly invested in the manufacturing, financial and insurance, and real estate industries.

Japan accounted for nearly half, or 48 percent, while the US took up almost a quarter (23 percent). Singapore and Malaysia, meanwhile, registered shares of 13 percent and 8 percent, respectively.

Most of the capital placements went to manufacturing (48 percent), followed by financial and insurance (20 percent), and real estate industries (17 percent). The remaining 15 percent of placements went to other industries.