Foreign investments in the Philippines surged in September 2024, with net inflows reaching $1.03 billion (PHP58.6 billion), according to data released by the Bangko Sentral ng Pilipinas (BSP).
The September net inflows are up by 92.1 percent from August, driven by substantial foreign interest in peso government securities and Philippine Stock Exchange (PSE)-listed securities.
BSP reported $2.53 billion in gross foreign investment inflows for the month, marking an 84.7 percent jump from August’s $1.37 billion.
Peso government securities attracted 57.5 percent of these inflows, amounting to $1.46 billion, while PSE-listed securities drew the remaining 42.5 percent, or $1.08 billion.
The majority of stock investments were concentrated in key sectors, including banks, holding firms, property, transportation, and food, beverage, and tobacco.
The BSP sees a strong uptick in foreign investment confidence as the Philippines continues to position itself as a competitive investment destination.
The sustained inflow, especially in peso-denominated assets, shows a positive investor outlook for the country’s fiscal health and economic growth.
The United Kingdom, Singapore, the United States, Luxembourg, and Malaysia contributed 88.4 percent of the total investment inflows. Observers note that these economies’ strong interest underscores the Philippines’ growing appeal as a regional investment hub.
Meanwhile, gross outflows increased significantly to $1.51 billion, a rise of 80 percent from August’s $836.78 million. The U.S. remained the primary destination for these outward remittances, receiving $769.93 million, or 51.1 percent of total outflows.
BSP noted that this trend aligns with historical patterns, as American investors tend to repatriate significant earnings from their Philippine assets.
Year-on-year comparisons further underscore the country’s remarkable investment performance. September’s gross inflows were up by 185.2 percent from the same period in 2023, while outflows declined by 5 percent.
The resulting net inflow for September 2024, a reversal from the $698 million outflow seen last year, is viewed as a positive shift.
For the period January to September 2024, foreign investments registered through BSP’s authorized agent banks posted a cumulative net inflow of $3.02 billion, a significant turnaround from the $387 million net outflow recorded during the same period last year.
Under current foreign exchange rules, foreign investors registering with BSP-authorized banks do so to facilitate the purchase of foreign currency for repatriating capital and remitting earnings. Registration is optional but recommended for investors aiming to streamline these transactions.
