The Philippines’ foreign direct investment (FDI) net inflows declines to US$505 million this February 2020, which is 31.5 per cent lower than the US$737 million recorded in the same month last year. On a cumulative basis, FDI net inflows in the first two months of 2020 reached US$1.2 billion, a 12.2 per cent decrease from the US$1.3 billion net inflows recorded in the same period in 2019
Net investments in debt instruments and net placements of equity capital has also decreased by 26.4% and 43 per cent, respectively. Bulk of the equity capital placements during the period were sourced from Singapore, Japan, and the United States, and were invested mainly to the manufacturing, real estate, and wholesale and retail trade industries.
According to Bangko Sentral ng Pilipinas (BSP), the FDI downturn is due to the uncertainties on the impact of the COVID-19 outbreak that dampened investor sentiment.