In February, FDIs posted a net inflow of $ 194 million, 83.4 percent lower than last year’s $ 1.16 billion.

"All FDI components posted net inflows during the first two months of 2008, despite foreign investors’ generally cautious stance amid global economic uncertainties," the BSP said yesterday.

"Consistent with the moderation of capital flows to many emerging countries, the net FDI inflows were lower than the level posted during the same period last year due to concerns on global economic slowdown, particularly in the US," it added.

In 2007, FDI flows came from a high base due to a large-scale investment in a local firm. FDI net inflows during the two-month period resulted from net foreign equity placements amounting to $ 124 million.

Specifically, gross equity capital placements reached $ 190 million and were mainly directed in manufacturing (ship building and repair), services (recreational/cultural), mining, construction (hotel/resort development, power plant facility), real estate, and financial institutions. Major investors came from the US, Japan, Malaysia, and South Korea.

In the meantime reinvested earnings recorded a surplus of $ 68 million from January to February, 19 percent lower than the level realized during the comparable period in 2007, with local banks repatriating profits to their foreign investors.