The Department of Trade and Industry (DTI) highlighted the positive trend in foreign direct investments (FDI) for January 2024, based on data from the Bangko Sentral ng Pilipinas (BSP).
Recent data showed that net inflows reached US$907 million, reflecting an impressive 89.9% growth compared to US$478 million in January 2023. This increase was driven in part by investments in the manufacturing, real estate, construction, and wholesale and retail trade sectors.
This notable rise in FDI marks the third consecutive month of expansion, following growth of 28% in November and 30% in December, in a month-to-month comparison with the previous year.
"The surge in FDIs reflects the unwavering confidence and steadfast trust the global business community places in the Philippines' economic potential," DTI Secretary Fred Pascual said.
"This only strengthens our commitment to further improve the country’s business environment to attract even more foreign investments, which in turn will create more jobs and sustain our economic growth. In particular, we are leveraging our strengths across key sectors such as manufacturing, real estate, construction, and wholesale and retail trade," he added.
The upward trajectory is primarily driven by a 173.2% increase in nonresidents' net investments in debt instruments, reaching US$820 million from US$300 million in January 2023. Reinvestment of earnings also saw a positive trend, rising by 16.4% to US$99 million.
Although net equity capital placements, excluding reinvestment of earnings, saw a slight outflow of US$11 million compared to net inflows of US$93 million in January 2023, the report emphasizes the overall positive aspects.
Equity investments during this period came primarily from Japan and the United States, targeting strategic sectors for the Philippine economy.
The DTI remains focused on further attracting significant investments in these essential sectors and other high-growth industries. By bolstering these foundational industries, the Philippines can create a more robust and resilient economy.
The announcement comes ahead of the Trilateral Economic Ministers Meeting, scheduled for April 11, 2024, in Washington, D.C. This significant event will bring together US Commerce Secretary Gina Raimondo, Japan’s METI Minister Ken Saito, and DTI Secretary Fred Pascual. The meeting aims to explore new trade and investment avenues that promise to generate business, create jobs, and foster sustainability.
Past engagements, including Secretary Raimondo's successful trade and investment mission to the Philippines and discussions during the ASEAN-Japan Economic Co-Creation Forum, have set the stage for future collaborations. These efforts underscore the robust economic ties between the Philippines, the United States, and Japan.
Under the leadership of President Marcos Jr., the Philippines is keen on enhancing its investment climate. The upcoming trilateral meeting is expected to unlock further trade and investment opportunities, in alignment with the government's objectives to improve infrastructure, upskill workers, ensure environmental sustainability, and invigorate the private sector with meaningful initiatives. PR