The Philippines registered nearly P1.03 billion in foreign direct investment inflows in September, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The BSP said net inflows in September were 92% higher ($491.82 million) than the net inflows posted in August 2024 (US$533.95 million).
“Transactions on foreign investments registered with the BSP, through authorized agent banks, in September 2024 recorded net inflows of $1,025.77 million resulting from the $2,531.83 million gross inflows and the gross outflows of $1,506.06 million for the month,” the BSP said in a statement.
The $2,531.83 million registered investments for the month are higher by $1,161.11 million (or by 84.7%) compared to the gross inflows recorded in August 2024 ($1,370.72 million). During the month, 57.5% of registered investments were in Peso government securities ($1,455.17 million), with the remaining 42.5% in PSE-listed securities ($1,076.66 million) [most of which were investments in (a) banks; (b) holding firms; (c) property; (d) transportation services; and (e) food, beverage & tobacco].
Investments for the month mostly came from the United Kingdom, Singapore, the United States (US), Luxembourg, and Malaysia, with a combined share of 88.4%.
The $1,506.06 million gross outflows for the month are higher by $669.29 million (or 80.0%) compared to the $836.78 million recorded in August 2024. The US remains the top destination of outflows, receiving $769.93 million (or 51.1%) of total outward remittances.
Year-on-year, the registered investments in September 2024 amounting to $2,531.83 million are higher by $1,644.22 million (or by 185.2 percent) than the $887.61 million recorded in September 2023, while the gross outflows of $1,506.06 million are lower by US$79.55 million (or by 5.0%) vis-a-vis the gross outflows recorded for September 2023 ($1,585.61 million).
The $1,025.77 million net inflows for September 2024 are a reversal from the $698.01 million net outflows recorded for the same period a year ago.
Year-to-date transactions (01 January to 30 September 2024) for foreign investments registered with the BSP through authorized agent banks yielded net inflows of $3,023.81 million, a marked improvement compared to the $387.24 million net outflows noted for the same period last year (01 January to 30 September 2023).
Under the rules on foreign exchange (FX) transactions, registration of inward foreign investments delegated to authorized agent banks by the BSP is optional. It is required only if the investor or its representative will purchase FX from authorized agent banks and/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of earnings that accrue on the registered investment.
Without such registration, the foreign investor can still repatriate capital and remit earnings on its investment, but the FX will have to be sourced outside the banking system.