Foreign direct investment (FDI) posted US$460 million net inflows in July 2022, bringing the cumulative net inflows to US$5.1 billion for the first seven months of 2022.1,2 These levels, however, were lower than the comparable net inflows posted a year-ago (US$1.3 billion and US$5.8 billion, respectively). All major FDI components yielded lower net inflows in January-July 2022 as foreign investors remained cautious amid continued adverse global conditions (Figure 1).
In July 2022, FDI net inflows decreased due largely to the lower non-residents’ net investments in debt instruments of their local affiliates.3 This decrease more than offset the growth in their net investments in equity capital (Figure 2).
Equity capital infusions during the month originated mainly from Singapore, Japan, and the United States. These were invested largely in the 1) construction; 2) manufacturing; and 3) real estate industries.