Foreign direct investment (FDI) net inflows continued its upward momentum for the third consecutive month in March, registering a 23.1 percent year-on-year growth to reach $686 million from the $557 million net inflows in March 2023.

The expansion in FDI net inflows was driven mainly by nonresidents’ net investments in debt instruments, which grew by 19 percent year-on-year to $465 million from S$391 million in March 2023.

Further, non-residents’ net investments in equity capital (other than reinvestment of earnings) rose by 67.1 percent to $157 million from $94 million.

Meanwhile, their reinvestment of earnings declined by 11.3 percent to $64 million in March from $72 million in March 2023.

Equity capital placements during the month were sourced primarily from Japan, Singapore, and the United States.

These were invested largely in manufacturing,financial and insurance, and real estate industries.

The developments brought the cumulative FDI net inflows to $3 billion in first quarter of 2024, a 42.1 percent growth from the $2.1 billion net inflows recorded in first quarter of 2023.

FDIs increased during the quarter on the back of the country’s strong growth prospects and moderating inflation. BSP