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Trade chief advises public to track foreign direct investments reported by central bank
If the public wants to track foreign direct investments in the Philippines, better check with the central bank and not the Philippine Statistics Authority, Trade Secretary Ramon Lopez said on Tuesday.
In a press briefing in Malacanang, Lopez cited the 11 percent year-on-year increase of FDI inflows in the first two months of the year, amounting to $1.1 billion.
Latest data from the Bangko Sentral ng Pilipinas showed in the first quarter, FDI posted $1.6 billion net inflows, 16.6 percent higher from $1.3 billion in the same period last year.
Asked about the 12.8 percent decline in the total approved foreign investments in the first quarter of 2017 by the seven investment promotion agencies as reported by the Philippine Statistics Authority, Lopez said, "FDI is central bank. Get it from central bank. Don't mind that (PSA report)."
He explained foreign investments being tracked by PSA were not complete as they covered the seven IPAs: Board of Investments, Clark Development Corporation, Philippine Economic Zone Authority, and Subic Bay Metropolitan Authority as well as Authority of the Freeport Area of Bataan, BOI-Autonomous Region of Muslim Mindanao, and Cagayan Economic Zone Authority.
PSA reported the total foreign approved investments in the first quarter amounted to P22.9 billion, lower by 12.8 percent compared with the P26.2 billion approved in the same period last year.
"That's (PSA) not the total investment picture...it's not whole Philippines. Central bank (covers) all remittances coming in," Lopez said.
But he expressed optimism approved foreign investments in the seven IPAs would still increase.
The BSP explained its statistics on FDI covers actual investment inflows, which could be in the form of equity capital, reinvestment of earnings, and borrowings between affiliates.
In contrast to investment data from other government sources, BSP’s FDI data include investments where ownership by the foreign enterprise is at least 10 percent.
Meanwhile, FDI data of IPAs does not make use of the 10 percent threshold and include borrowings from foreign sources that are non-affiliates of the domestic company, the central bank said.
It added its FDI data are presented in net terms, such as equity capital placements less withdrawals, while the IPAs’ FDI do not account for equity withdrawals. Celerina Monte/DMS
