Net FDI is rising to a 4 -month high

ALEXANDER MIL-UNSPLASH

Na Keisha B. Ta-asan

NET INFLLOWS of foreign direct investment (FDIs) in the Philippines rose to a four -month high in April due to the re -opening of the economy and trade liberalization measures that lifted the investor. make up.fidence.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Monday said FDI netflDebt rose 48.3% to $ 989 million in April from $ 667 million in the same month in 2021.

This is the highest FDI of any monthflow recorded up from $ 1.06 billion in December last year.

Foreign direct investmentsEach month, the volume of FDI, which stands as a major source of jobs and capital for the local economy, has grown by 36% from $ 727 million in March.

“FDI harvests show a positive decline since the re -opening of the industry. With the Philippines releasing a stable 1Q GDP report and slowing migration rates, it has this is likely to boost investments in the Philippines, let alone. equity or ‘new FDI,’ ”ING Bank NV Manila Senior Economist Nicholas Antonio T. Mapa said in an email.

Metro Manila and most parts of the country have been below the best alert since March, due to the decline in coronavirus infection.

“The increased security and the country’s ability to prevent the rise of COVID without the use of security locks has shown that the industry is much better for investors. , ”China Banking Corp. said. Chief Economist Domini S. Velasquez in a Viber message.

Ms. also saw. Velasquez and FDI maflMost of the debt will be driven by economic reforms imposed by the Duterte administration.

“The changes to the Public Service Act (PSA) and the Retail Trade Liberalization Act (RTLA) have freed the holders of certain regions the right of foreigners to pull the interest of investors,” he said. his place.

President Rodrigo R. Duterte in March signed into Republican law No.

Mr. Wright also wrote. Duterte included in the legislation measures to amend the RTLA and the Foreign Investment Act, which are intended to strengthen the competitiveness of Philippine businesses and services.

Data from the BSP showed that the increase in FDI inflows, due to the increase recorded in all regions, was led by the non -net contributions of the locals to the creditors.

April data showed an increase of 40.6% in foreigners firms is included in land bills affiliates to $ 684 million from $ 487 million last year.

Foreign investment in equity rose 127.8% to $ 206 million in April. Investment increased by 103.3% to $ 224 million, and reduced by 9.9% to $ 18 million.

Most of the deposits came from Malaysia, the United States, and Japan, and were invested heavily in construction, property, and manufacturing.

The return on revenue fell 10.2% to $ 99 million in April.

For the fiThe first four months of the year, total FDI was internalflDebt grew 12.1% to $ 3.4 billion.

“The amount of FDI income has increased due to the increase in the net worth of non -citizens in lending,” the BSP said, citing a 35.3% jump in investments. foreign exchange to $ 2.5 billion.

The re -introduction of income generation flat $ 329 million during January and April.

However, investment fell 37.2% to $ 517 million in four months, while deposits fell by 39.4% to $ 576 million. The return on equity also fell 53.2% to $ 59 million.

Upena maflFDI inflows are expected to slow in the coming months, amid the gloom of the global economy.

“We can see a downturn in the near future when the industry is in short -term headlines but if the Philippines sees turmoil, we can expect FDI to start again in the near future. so that we can end the problems of the present, ”said Mr. Map.

In addition to economic reforms, Ms. Velasquez will receive net FDI inflows from “business investments including private sector investment, and efforts to reform the tax system.”

“Apart from these reforms, the business is simple, anti-corrupdiligence, and perseverance the law should please investors, ”he said.

The central bank focuses on FDI The net worth is $ 11 billion this year.

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