Foreign direct investment (FDI) net inflows reached $819 million in January, albeit lower by 16 percent than the $975 million net inflows in January 2021, the Bangko Sentral ng Pilipinas (BSP) Monday.

The decline in FDI net inflows reflected the 68.2 percent contraction in equity capital placements to $118 million from $370 million in the same month last year.

This may be due largely to investor concerns following the resurgence of cases of the highly transmissible Omicron COVID-19 variant in the country and the re-imposition of stricter quarantine measures in early January.

Equity capital placements originated mostly from Japan, the United States, the Netherlands, and Malaysia. Capital infusions were channeled mainly to the manufacturing; financial and insurance; and real estate industries.

Reinvestment of earnings was little changed at $78 million from $79 million a year ago.

Meanwhile, non-residents’ net investments in debt instruments increased by 18.3 percent to $634 million from $536 million in January 2021 as inflows were infused to local affiliates to finance their operational requirements. BSP