FOREIGN direct investments (FDIs) saw net inflows totaling $742 million in May, up 64.1 percent compared to the same month in 2021, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday.

From January to May, FDI net inflows rose by 18.8 percent to $4.2 billion from the $3.5 billion net inflows posted in the same period last year, the central bank said.

“The year-to-date growth was mainly on account of the increase in non-residents’ net investments in debt instruments, which muted the decline in net equity capital placements (other than reinvestment of earnings),” BSP said.

Japan, the United States, Singapore and the Netherlands led in equity capital placements.

These were invested mostly in the manufacturing; real estate; information and communication; and transportation and storage industries.

The Philippines has fallen behind its neighbors in Southeast Asia in attracting foreign investments.

However, following recent reforms to investment laws, the government sees more foreign capital to flow into the country.