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Promising

THERE was a time when “Keegan Bradley” and “promising” were frequently used in the same sentence. He took the pro ranks by storm in 2011, becoming only the third player in history to claim a major championship on the first attempt and taking PGA Tour Rookie of the Year honors without any competition to speak of. Over the next three years, he added a victory, three bridesmaid finishes, numerous Top Ten showings, and consecutive appearances at the Ryder and Presidents Cups to his resume. He was on a first-name basis with fans, a standout for his sunny disposition and competitive nature, if a target for his controversial use of the long putter.
And then Bradley came crashing down to earth. For pundits intent only on following contenders, he might as well have disappeared off the face of it; he fell to a career-low 120th in world rankings last year, with swing changes and inconsistent efforts underscoring his loss of confidence. Then came the birth of his son Logan in November, coinciding with an evidently improving form. Whether or not the two are correlated, only he knows.
In any case, the results are clear. Since the turn of the year, he has missed the cut just twice against four Top Ten finishes in 22 events. And if his playoff triumph at the BMW Championship yesterday is any indication, he figures to be a fixture in leaderboards more often than not. Considering his ascent, it was, perhaps, fitting that his fourth career win, and first in six years, came at the expense of World Number One Justin Rose. Naturally, he celebrated it with Logan, catapulting it to the top of his accomplishments on the course. As he noted in the aftermath, “we get to go back, have fun, and enjoy it together. It’s just a completely different experience.”
At this point, it’s fair to wonder if Bradley will be able to rub elbows with the best of the best week in and week out. In light of where he was this time last year, however, his jump to 31st in world rankings cannot but he seen as a positive. If nothing else, he can take heart in the knowledge that “Keegan Bradley” and “promising” are again being used in the same sentence.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

The ‘Fes’ of a new SUV: Hyundai holds regional introduction of new Santa Fe in the Philippines


Text and photos by Aries B. Espinosa
IN a ride-and-drive event involving over 40 participants coming from four countries in Southeast Asia, you can bet that the one person who could tie the human and machine aspects of the event together so neatly bears the same name as the vehicle that’s being tested.
Ma. Fe Perez-Agudo, president and CEO of Hyundai Asia Resources, Inc. (HARI), distributor of Hyundai in the Philippines, diverted the attention of the participants from the launch of the fourth generation of the bestselling Santa Fe SUV by recognizing the efforts of the local and regional journalists, and mentioning their names one by one.
“It’s not often for all of us to come together, because we have different life journeys in our respective fields and in our different countries. Today will be a moment to remember, because all of us have been intertwined, all for the Hyundai Santa Fe driving experience. Today we all serve as the testament to the dedication, camaraderie and refined strength exhibited not just by the ‘PH,’ or what we call ourselves the ‘People of Hyundai,’ but also by those coming from Malaysia, Cambodia, Singapore and, of course, from South Korea,” Ms. Perez-Agudo said during the regional ride-and-drive event held on Sept. 3-4 in Subic Bay.
The executive could have just as well been describing the synthesis of the new features of the fourth-generation Santa Fe SUV, the monocoque-body SUV HARI previewed in April at the 2018 Manila International Auto Show.
The regional ride-and-drive for the new Santa Fe was held around four locations in Central Luzon: Subic Bay, Zambales, Mount Samat and Bagac in Bataan. The course, put together with the help of former race driver and now events organizer Vip Isada, highlighted the power, stability, comfort and spaciousness of the SUV.
HARI SVP for strategy and innovation Renato G. Pizarro explained the company’s choice of venue; “Much like the Santa Fe, Subic has the power. Subic was first a military base before it was converted to commercial use. After the Mount Pinatubo eruption, Subic rose from the ashes because of the power of its people, and became what it is today, a tourism hot spot.”
Dubbed the “Sea to Summit Conquest,” the event held with the participation of Hyundai Motor Company Regional Headquarters (HMC RHQ) entailed 146 kilometers of combined expressway, provincial and urban driving that also came with the challenging twisty routes, particularly in the leg going to and from the Mount Samat Shrine in Bataan, and along the Zambales mountain range from the Bataan Nuclear Power Plant to Subic Bay.
And just like what Yong Suk Lee, HMC RHQ director, guaranteed the before the drive on Sept. 4 when he said that the “cornerstone of Hyundai’s longstanding SUV heritage, the fourth-generation Santa Fe, will continue to impress with its premium design, spacious interior, and advanced technology,” the sporty-looking Santa Fe did not disappoint.
The Philippine-spec Santa Fe is powered by the 2.2-liter CRDI engine that generates 198 hp at 3,800 rpm and 440 Nm between 1,740 rpm and 2,750 rpm. The eight-speed automatic transmission that is matched to it has been improved, and the vehicle’s monocoque structure controls body roll better, resulting in a more efficient and comfortable driving experience.
Priced at P2.338 million, the all-new Santa Fe comes with a host of upgrades in its interior, exterior and technology. The seven-seat, midsize SUV is 70 millimeters longer and is 10 millimeters wider compared to the previous generation, helping the vehicle achieve the roomiest second-row legroom in its class. Outside, its three-dimensional honeycomb pattern and much-widened cascading grille gives it a bolder, smarter look that’s based on Hyundai’s new family identity. The separated headlight design (composed of LED projector lamps with dynamic bending and daytime running lights) and diamond-cut 19-inch alloy wheels add to the Santa Fe’s more muscular, taut shape.
The uncluttered cabin and instrument panel provide driver and passengers ease of use and sense of control despite the generous amounts of technologies thrown in, highlighted by the heads-up display, audio system that possesses Bluetooth connectivity with voice recognition for Android Auto and Apple Carplay, and cruise control.
No doubt, Filipinos will see, feel, and experience all of these when they test-drive the new Santa Fe. But the “Fe” that we’ll remember the most during this regional event would be the woman that drives HARI to new highs.

Rethinking tires: Michelin Primacy 4 challenges ‘new vs worn’ notions


Text and photos by Kap Maceda Aguila
PATTAYA, Thailand — Did you know that as much as one in every five full tanks of fuel can be, in effect, consumed by tires? So choose well when shopping for the only things making contact with the road. Of course, safety remains the utmost concern. However, we are mostly pushed into tire shops when confronted with the realization that our tires, well, no longer make tracks.
Recently, Michelin Philippines unveiled a potentially game-changing new model in its Primacy line. The Primacy 4 highlights a number of advantages, pillared on a bold “Safe When New, Safe When Worn” slogan that promises “lasting safety and excellent performance in both new and worn states, throughout its entire life cycle.”
The “when worn” aspect of the pitch is something new — and significant. Asserted Cyrille Roget, Michelin’s worldwide director for scientific and innovation communication, at the Primacy 4’s regional launch here: “New tires only exist only on the shelf in the store… as soon as you start to drive, the tire performance changes… So how do you know you’re safe?” Michelin asks people to rethink and reframe how they think about tires.
At the firm’s request, TUV Rheinland Thailand Limited conducted tests on new and worn Primacy 4 tires versus four other premium brands. The results were compelling: Primacy 4 displayed superior braking (2.5 meters shorter) when new — a lead that grows to an impressive 5.1 meters shorter when worn, compared to the other brands. The “worn” tires had two millimeters of remaining tread depth, and wet-braking distances were recorded from 80 kph to standstill.
The Primacy 4 was also rated “most silent and comfortable” upon assessment of interior noise at 50 kph -70 kph and a comfort test at 30 kph — 50kph. The reckoning was performed on similar 225/50R17 tires fitted to a Honda Accord.
A delegation of journalists from Asia Pacific, including this writer, was asked to witness and be part of the aforementioned regional launch here. Part of the activities was the replication of the comparison testing. A professional driver executed the same tests performed on the same competing brands in January to similar results, while writers were invited to do noise and comfort testing by driving through test terrains aboard differently equipped cars.
According to Louis Giraud, Michelin vice-president for B2C marketing in East Asia and Oceania, buyers often consider four main factors when sourcing tires: safety, silence, comfort and price. Michelin looked at all these aspects in the development of the Primacy 4. Mr. Giraud continued that, typically, car owners replace their tires after three to four years of service or 40,000 to 50,000 kilometers — reflecting the commonly held belief that usage has a direct correlation with performance degradation. But Michelin wants to take exception.
Mr. Roget asserted; “We are here to understand consumer needs. We’re a company that is very consumer centric… safety is as the core of what we do every day.” He added that a sum of €6 billion to €9 billion is saved in Europe alone owing to the extended service life of Michelin’s tires — again, a direct product of the earnest work that the company’s innovators do.
The new product, explained Michelin Philippines chief representative Michael Nunag in a statement, “addresses two major pain points of consumers in our country: Safety, journey after journey, due to unfavorable road conditions and rain-related accidents; and comfort, due to challenging road and traffic conditions.”
Mr. Roget shared that the company is driven by a passion for innovation — resulting in groundbreaking, tangible technologies such as the radial tire in 1946 and the use of silica compound in the 1990s. “This is really in our core,” he insisted. “Last year, we spent €640 million [on] innovation.” Some 600 out of the 117,000 employees Michelin employees worldwide are involved in innovation work. In 2017, the company registered an excess of 400 patents — adding to a considerable total of 12,000 tire-related patents in its portfolio since 1889.

VW pitches new models as ideal for Filipinos’ ‘motoring lifestyle’

A RECENT two-day road trip that visited culinary destinations and cultural sites in Central Luzon was one of the latest activities by which Volkswagen Philippines proposed its current range as the ideal “motoring lifestyle” vehicles for consumers.
Taken by the company on a tour — held on Aug. 20-22 — of Pampanga. Nueva Ecija and Bulacan were the Volkswagen Santana MPI M/T, Lavida 230 TSI DSG, and Tiguan 280 TSI DSG. The three models presently represent Volkswagen Philippines’ initial shift toward the German brand’s vehicles that are either built, designed or exclusively sold in China — a move that allows for cheaper model prices in the Philippines, which come partly as a result of lower tariffs and freight costs. The new models were introduced in the country in May.
Volkswagen Philippines said it seeks to make its latest models be “within reach of hardworking Filipinos.” This also explains the “Filipiniana” theme of the recent “lifestyle tour,” according to the company.
The culinary spots included in the tour were restaurants famous for their Filipino cuisine: Bale Dutung in Angeles, Pampanga; Hapag Vicentico’s in Cabanatuan City, Nueva Ecija; and Bahay na Tisa Restaurant in Malolos, Bulacan. Sites visited for their cultural and historical significance were the Barasoain Church Historical Landmark and The Museo ng Republika ng 1899 in Malolos, Bulacan; the Philippine Rice Research Institute in Muñoz, Nueva Ecija; and the Pantabangan Lake, also in Nueva Ecija.
ON THE ROAD
An equally important component of the tour were the routes taken from one destination to another as these were planned to highlight the vehicles’ capabilities — as well as how comfortable they could be on long trips. Cited in particular by Volkswagen as features that make the cars comfortable were their Climatronic air-conditioning, leather seats, and — in the Tiguan’s case — two-zone climate control, eight-speaker audio and 12-way powered adjustment for the driver’s seat.
The first day of the trip tackled Metro Manila streets, the northern expressways, and both the city roads and country lanes of Nueva Ecija. The next day’s drive traversed three mountain ranges — Sierra Madre, Caraballo and Cordillera. This, Volkswagen said, provided the “perfect setting [in which]… the power, stability and handling of the Santana, Lavida and Tiguan” could be sampled. The third day’s trip from Nueva Ecija to Bulacan and back to Quezon City — where the activity started — combined the varied types of roads tackled during the previous days. The tour covered more than 400 kilometers.
WHAT CAR?
Presently the entry model in Volkswagen Philippines’ lineup is the Santana, powered by an 89-hp, 132-Nm 1.4-liter MPI gasoline engine that’s matched to a five-speed manual transmission. It is positioned to compete against entry-level models via a price tag starting at P686,000.
A rung up Volkswagen’s current sedan range is the Lavida 230, which comes with a 128-hp, 225-Nm 1.4-liter Turbocharged Stratified Injection (TSI) gasoline engine and a seven-speed Direct Shift Gearbox (DSG) transmission. Among the premium features of the Lavida are leather seats, automatic climate control, a sunroof, electronic differential lock and push-button ignition start/stop. The car is priced from P1.171 million.
The Tiguan 280 is a refreshed version of the previous-generation Tiguan that is now produced by Shanghai Volkswagen. It is equipped with a 147-hp, 250-Nm 1.4-liter TSI engine, a six-speed DSG, “Vienna” leather seats, dual-zone automatic climate control, a panoramic sunroof, an eight-speaker audio, and a 12-way power-adjustable driver’s seat, among other features. It sells for P1.648 million. — Brian M. Afuang

Dashboard (09/12/18)

Ford PHL holds 2nd edition of test-drive road show


THE Ford Island Conquest series of test-drive activities, launched in 2017, is being held again this year.
Ford Philippines said the “experiential test-drive road show” is scheduled on Sept. 14-16 at Shangri-La Plaza Mall EDSA, Sept. 22 at Arca South Taguig, and Sept. 28-30 at SM Megamall. Available for test-drives at the venues are the Ford EcoSport, Everest, Ranger, and Explorer. Presentations on Ford’s after-sales and service offerings, such as Premium Extended Warranty and Scheduled Service Plan (SSP), are also offered to visitors. Ford accessories will be sold during the events, too.
Ford said customers who place reservations for a vehicle can avail of a P100,000, P50,000 and P20,000 cash discounts, or get a free SSP for three years.
“We’ve excited to hold the Ford Island Conquest once again this year in our continuous effort to provide our customers with a first-hand driving experience of a Ford vehicle in an outdoor setup,” said Rodel Gallega, vice-president for marketing and sales at Ford Philippines.

Mercedes-Benz buses to ply new P2P route

SEVENTEEN Mercedes-Benz 0500U premium buses are set to ply the Point-to-Point, or P2P, route from Araneta Center in Cubao, Quezon City to NAIA Terminal 1 in Pasay City as the German brand’s distributor in the Philippines, Auto Nation Group (ANG), joined UBE Express in the new project.
UBE Express operates a premium bus airport shuttle service.
ANG and UBE Express started its partnership in 2016 when the former provided 21 units of the 0500U’s 24-seat version. This year, ANG has committed to deliver 17 units of the bus model’s 32-seat version.
ANG noted UBE Express is “just one of the numerous P2P companies [it] provides buses to” in Metro Manila and Cebu.

Time Machines (09/12/18)

Singer Track1 Hong Kong Edition

SINGER, known for turning classic Porsche 911s into modern sports cars that still look period-correct, has come up with a line of watches that capture this fusion of old and new. The Track1 Hong Kong Edition is no different; despite its classic styling the watch boasts a jumping-hour, column-wheel chronograph housed within a DLC-coated ceramic case fitted with a crown and pushers made from grade 5 titanium.
MOVEMENT: Self-winding, twin-barrel, column-wheel chronograph, 21,600 vph, 60-hour power reserve CASE: 43 millimeters, matte black, DLC-coated, ceramic with sapphire crystal CASEBACK: Sapphire crystal STRAP: Canvas with folding buckle

In the time of Carmageddon, I insisted on having an office

IN 2010, after years of driving through EDSA traffic from my house in Parañaque to my workplace in Quezon City (then later Mandaluyong), I decided to rent a condo unit next to my office building. This allowed me to walk 200 steps every day to report for work, while saving my car a lot of mileage in the process. In other words, I heeded the advice of living near my place of employment just to avoid the soul-sapping effects of driving.
My problem resurfaced when I had to quit my previous company two years ago. Where would my next employer be located? How many hours would it take me to get there? And would it all be worth the exasperation?
Thankfully, I ended up starting my own business — a motoring website (visor.ph) — and my partners were kind enough to base our office in my neighborhood (presumably to lure me into spending all my waking hours there). We’ve only recently wrapped up interior work, and we’re now starting to move in. It’s just a five-minute drive from my condo — less at certain hours. I guess I could walk or bike if I wanted to, but I don’t want to. Mostly because I’m out of shape.
There is so much upside to living near your work (or working near your home), but my favorite is being able to show up in the office fresh, happy, enthusiastic and extremely motivated. My officemates also live in the area, so our company (I think) is overflowing with freshness, happiness, enthusiasm and motivation.
The digital nature of our business probably has some folks questioning the wisdom of having a brick-and-mortar office in the first place. In this age of wireless everything, my team and I could have opted to just communicate online and just meet at some hip coffee shop to address a pressing concern here or a fiscal issue there. We publish a Web site, after all. What aspect of it requires our warm bodies to congregate at a common address?
But perhaps more crucially, having a physical office seems to defy present-day logic. The concept of telecommuting — or working from home — has never been more popular than it is today. With traffic congestion being a literal pain in the ass (from having to sit inside a car for hours on end), even profit-minded employers are now okay with allowing people to skip an office day each week if this would mean lighter vehicle volume out there and less stress for everyone on the payroll.
So why insist on putting together and maintaining an office?
I got my answer the other day during a meeting with clients in our new abode. We hadn’t officially opened shop — the paint had barely dried — but I asked them to come visit us anyway. Even in our office’s unfinished state, I was already proud of what we had accomplished. I wanted to gauge from our clients’ reaction if our efforts (and resources) had been worth it.
They looked and sounded impressed — not so much with the tangible attributes of our humble headquarters as with the implication that such a corporate domicile signified. The implication that we are serious with what we are doing. The implication that we value the creative process. The implication that we give our best in everything that we do. And yes, the implication that we’re here to stay.
Make no mistake: Setting up an actual office — versus simply debating on Viber or Messenger — is a truly monumental task. It will drain you. Financially, emotionally, psychologically. But it will also reward you in ways telecommuting cannot. I gaze on a wall and it energizes me to beat never-ending deadlines.
Then again, maybe all this excitement comes from the fact that our office is a stone’s throw from my house. Maybe I wouldn’t be this thrilled to go to work if I had to labor my way through rush-hour gridlock. But nah. I’m sure I’m ecstatic because I have a legitimate chance to realize a dream — two years after everything in my life was a nightmare. I’d drive through any kind of traffic for that.

Rice inventories down, corn stocks up as of Aug 1 — PSA

rice NFA
AT 1.52 million metric tons, the national rice inventory should last the Philippines 47 days — just short of President Duterte’s mandated 60 day supply.

By Anna Gabriela A. Mogato
TOTAL rice inventories as of Aug. 1 were further depleted at 1.52 million metric tons (MT), data from the Philippine Stocks Authority (PSA) showed.
In PSA’s Rice and Corn Stocks Inventory report released on Tuesday, the latest recorded stocks were 25.01% lower than last year’s 2.03 million MT. Month on month, this is also down 23.61% from the 1.99 million MT recorded on July 1 earlier this year.
This 1.52 million MT is deemed sufficient for around 47 days.
President Rodrigo R. Duterte, however, mandated that the national inventory should be able to last for up to 60 days after the NFA faced tight rice supply due to delayed bidding and importation of rice to refill their buffer stocks.
Households, which only saw its stocks slide by 0.26% year on year to 746,380 MT, took up 49.08% of the total rice stocks inventory, PSA said.
Commercial warehouses took up 44.27% of the pie while National Food Authority (NFA) shouldered the remaining 6.65%.
Among all inventories, commercial warehouses saw the steepest year on year drop in stocks, plummeting by 42.51% to 673,230 MT.
This was followed by the NFA which had its stocks drop by 6.94% to 101,150 MT despite the arrival of imported rice during the period.
Month on month, commercial warehouses’ stocks were down by 28.77%, followed by household stocks by 24.79%.
NFA stocks, however saw a 89.78% jump from previously recorded stocks.
The state grains agency is mandated to have 15 days’ worth of buffer stock at any given time and 30 days’ worth of buffer stocks during lean season — from the month of July to September. Currently, NFA’s stocks are deemed sufficient for only around 3 days.
Household and commercial warehouse stocks are deemed sufficient for 23 and 21 days, respectively.
Unlike rice stocks, total corn inventory surged by 75.45% to 1.22 million MT from 696,460 MT last year. Month on month, this is also 154.11% higher from the 480,860 MT recorded as of July 1.
Commercial warehouses lead all other inventories with an 89.44% increase from last year’s stocks to 1.15 million MT. Month on month, this is 173.83% higher from 420,600 MT worth of stocks recorded in the previous report.
Household stocks, while posting a 15.90% year on year drop, still grew by 16.51% in a monthly comparison to 70,210 MT.

NFA lays plans for ramped up palay procurement

rice NFA
WITH more and more palay farmers opting to sell to private traders, the NFA is batting to increase its buying price to up to P25 per kg. — PHILSTAR

By Anna Gabriela A. Mogato
THE National Food Authority (NFA) will be gearing up local palay — or unhusked rice — procurement following the three-month lean season.
State Grains Agency Administrator Jason Laureano Y. Aquino, in a statement issued on Tuesday, said that they have enough funds to procure rice from farmers. The agency did not, however, disclose the exact amount they have on hand.
Mr. Aquino also said that he had instructed NFA’s regional branches to go to farmers “especially in areas where the prices offered by private traders are below the government support price.”
“We have also simplified some of the requirements and the procurement process to encourage farmers to sell their produce to the agency,” he said.
The NFA has 279 buying stations for both farmer organizations and individual farmers to sell their crops. At P17 per kilogram (kg), the agency’s buying support price for clean and dried palay remains lower than that offered by private traders.
Recent data from the Philippine Statistics Authority showed that, as of Aug. 1, NFA’s stock was only at 101,150 metric tons, taking up only 6.65% of the country’s total rice stocks.
The NFA reported having 75,753 bags of locally-procured rice as of Aug. 31.
The agency pointed to higher buying prices offered by private traders, leading farmers to sell to their produce to the private sector. In response, the NFA is batting to increase its buying price to P25 per kg to be able to compete with private traders.
“We are happy for our local farmers,” Mr. Aquino said. “They were the ones who have benefitted from the high price of palay, realizing higher incomes from their produce.”
“[But] NFA’s presence in the market is meant to stabilize and not to compete directly with private traders,” he said. “We are here to provide an alternative market for them when palay prices drop to prevent private traders from taking advantage of them.”

Trade gap widens in July amid flat export growth

By Carmina Angelica Valeroso-Olano, Researcher

The country’s trade deficit continues to grow in July as imports continued its accelerated growth pace while export growth was flat.

Exports grew by 0.3% to $5.85 billion in July, slower than the 2.8% growth in June and 21.9% in July 2017.

The country’s balance of trade in goods expanded to a $3.55 billion deficit in July from $1.31 billion a year ago as imports accelerated. The country’s import bill increased 31.6% to $9.40 billion during the month, faster than the 24.2% seen in June and the 0.3% decline in July 2017.

On a cumulative basis, merchandise exports amounted to $38.74 billion, down 2.8% from $38.74 billion in the same seven months last year while that of imports grew 15.7% to $61.23 billion versus last year’s $52.923 billion. This brought the trade deficit to $22.490 billion year to date.

The United States is the Philippines’ top export market in July with a 16.6% market share at $972.52 million followed by Hong Kong’s 14.7% ($859.98 million) and Japan’s 13.7% ($799.02 million) market shares.

Meanwhile, China was the country’s top source of imports with a 19.8% share in July ($1.86 billion) followed by South Korea’s 10% ($936.49 million) and Japan’s 9.7% ($911.48 million) market shares.

Foreign direct investments in the Philippines (June 2018)

NET INFLOWS of foreign direct investments (FDI) to the Philippines increased anew in June, helping to fuel a first-half surge that pushed the tally closer to an official full-year forecast, according to data the Bangko Sentral ng Pilipinas (BSP) released on Monday. Read the full story.
Foreign direct investments in the Philippines (June 2018)

June fuels first-half FDI surge

By Melissa Luz T. Lopez, Senior Reporter
NET INFLOWS of foreign direct investments (FDI) to the Philippines increased anew in June, helping to fuel a first-half surge that pushed the tally closer to an official full-year forecast, according to data the Bangko Sentral ng Pilipinas (BSP) released on Monday.
FDI net inflows reached $831 million for the month, up 9.2% from the $761 million which the country received in June 2017, even as the latest inflows were less than the $1.645 billion recorded in May.
FDI inflows spell more capital for the Philippine economy, fuelling business expansion that, in turn, generate more jobs and spurs overall domestic activity.
Foreign direct investments in the Philippines (June 2018)
Investors remained bullish on the Philippine economy, as evidenced by the surge in equity placements compared to a year ago.
June saw the US Federal Reserve raise interest rates for a second time this year. Back home, the BSP also hiked rates by another 25 basis points for the second straight month in an effort to rein in inflation expectations amid signs that price pressures remain elevated.
June inflows brought the first-semester FDI tally to $5.755 billion, 42.4% more than the $4.041-billion investments received in 2017’s first six months.
“The continued inflows of FDI indicate investor confidence in the Philippine economy on the back of strong macroeconomic fundamentals and growth prospects,” the BSP said in a statement.
Net equity investments reached $184 million in June, turning around from the $67-million net outflows recorded in the same month last year.
Total inflows of equity capital reached $208 million in June, nearly double the $113 million placements a year ago. These inflows were partly offset by just $24 million in withdrawn capital, versus June 2017’s $180-billion outbound capital.
Multinational companies also chose to reinvest a bigger share of earnings drawn from their operations in the Philippines, growing the amount by 7.1% to reach $77 million from $72 million.
These additional flows were enough to offset smaller investments in debt instruments that dropped fourth to $569 million from $756 million the prior year.
One observer said the sustained FDI surge is good for the economy, as it fuels stronger activity particularly in terms of factory output.
“The preference over equity describes the continuing resurgence of manufacturing in the country. This manufacturing growth consequently relates to the government’s push for increasing government spending on infrastructure,” said Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines.
Strong FDI momentum also puts the country on track to hit the $9.2-billion forecast this year, coming from the record $10.049 billion tallied in 2017.
“In fact, at the rate it is growing, the 2018 FDI goal can be readily surpassed,” Mr. Asuncion added, noting that third-quarter investments would be “crucial” to the full-year tally.
For June, the biggest sources of investments were Singapore, Luxembourg, Japan, the United States and the Netherlands, with such inflows going to manufacturing; electricity, gas, steam and air conditioning supply; real estate; financial and insurance; and wholesale and retail trade activities, the central bank said.
Market watchers have flagged that the planned overhaul of the local tax incentives regime could dampen investor appetite towards the Philippines, although the final form of the second tax reform package is yet to be passed by the Senate after the House of Representatives approved the same on third and final reading last night. Tax measures have to come from the House by law, although the Senate can conduct parallel public hearings while awaiting House approval in order to expedite enactment.

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