Foreign direct investment (FDI) net inflows reached a record high of $10 billion in 2017, up by 21.4 percent from the year-ago level, the Bangko Sentral ng Pilipinas (BSP) said Monday.

Investors continue to view the country as a favorable investment destination on the back of the country’s sound macroeconomic fundamentals and growth prospects, the central bank said.

All major FDI components registered increases during the year. In particular, net equity capital investments expanded by 25.9 percent to $3.3 billion, with gross placements of $3.7 billion exceeding withdrawals of $479 million.

Equity capital placements originated largely from the Netherlands, Singapore, the United States, Japan, and Hong Kong.

By economic activity, equity capital placements were channeled mainly to gas, steam and air-conditioning supply; manufacturing; real estate; construction; and wholesale and retail trade activities.

Net availment of debt instruments (consisting mainly of intercompany borrowings/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines) rose by 20.7 percent year-on-year to $6 billion. Reinvestment of earnings increased by 9.3 percent to reach $776 million during the year.

In December 2017, FDI registered $699 million net inflows. This was lower, however, by 9 percent from the level recorded a year ago due largely to the 19.1 percent drop in net investments in debt instruments to $335 million.

Net placements of equity capital likewise declined moderately by 0.4 percent to $305 million. On a gross basis, equity capital infusions reached $328 million, originating mainly from Singapore, Japan, the Netherlands, the United States, and Luxembourg.

The placements were invested largely in manufacturing; real estate; wholesale and retail trade; information and communication; and arts, entertainment and recreation activities.

Reinvestment of earnings grew by 24.1 percent to $59 million in December 2017. DMS