Foreign direct investment (FDI) net inflows sustained its uptrend for the fifth consecutive month in October 2021, registering a 98.9 percent growth year-on-year to $855 million from the $430 million net inflows in the same month in 2020, the Bangko Sentral ng Pilipinas (BSP).

The development brought the FDI net inflows from January to October to $8.1 billion, higher by 48.1 percent than the $5.5 billion net inflows in January-October 2020.

Cumulative FDI net inflows rose on the back of the 78.6 percent increase in non-residents’ net investments in debt instruments to $5.9 billion from $3.3 billion in the same period in 2020.

Similarly, reinvestment of earnings reached $942 million, an 11.9 percent increase from the $842 million posted in January-October 2020.

Meanwhile, non-residents’ net investments in equity capital (other than reinvestment of earnings) remained broadly stable at $1.3 billion.

Cumulative equity capital placements dipped slightly by 3.6 percent to $1.6 billion (from $1.7 billion), while withdrawals grew by 2.3 percent to $351 million (from $343 million).

Equity capital placements during the period came mostly from Singapore, Japan, the United States, and the Netherlands. These were channeled primarily to the manufacturing; electricity, gas, steam, and air-conditioning; financial and insurance; and real estate industries.

The recorded increase in FDI net inflows in October was mainly on account of the 78.5 percent growth in non-residents’ net investments in debt instruments to $637 million from $357 million in October 2020.

Non-residents’ net investments in equity capital (other than reinvestment of earnings) likewise increased to reach $141 million from $1 million in the comparable month in 2020.

The notable expansion was due to the improvement in equity capital placements (by 80 percent to $154 million from $86 million) and the decline in equity capital withdrawals (by 84.1 percent to $13 million from $85 million).

Equity capital placements were sourced mainly from Japan, Singapore, and the United States. These were channeled mainly to the manufacturing; electricity, gas, steam, and air-conditioning; and real estate industries.

Reinvestment of earnings for the month amounted to $77 million, up by 7.1 percent from $72 million. BSP