The Bangko Sentral ng Pilipinas (BSP) reported a surge in portfolio investments flowing inward on net basis in September reaching USD1.025 billion—a 92.1 percent increase from August’s USD533.95 million. The upswing, the BSP said, highlights the growing global confidence in the Philippines as a prime investment destination.
Total gross inflows for the month soared to USD2.531 billion, representing an 84.7 percent jump from August’s USD1.370 billion. Notably, 57.5 percent of these investments were funneled into peso government securities, totaling USD1.455 billion, while 42.5 percent found their way into securities listed on the Philippine Stock Exchange (PSE), amounting to USD1,076 billion. Key sectors attracting the influx included banking, holding firms, real estate, transportation, and food and beverages.
The BSP identified the United Kingdom, Singapore, the United States, Luxembourg, and Malaysia as the top sources of these investments, collectively contributing 88.4 percent of total inflows.
On the outflows, the September period posted gross outflows of USD1,506 billion, up 80 percent from August’s USD836 billion. The United States remained the main destination for these outflows, accounting for 51.1 percent at USD769.93 million.
Year-over-year data revealed an increase in gross inflows, which surged by 185.2 percent, or USD1.644 billion, compared to USD887.61 million in September 2023. Conversely, gross outflows dipped slightly by 5 percent from USD1.585 billion last year, marking a significant turnaround in net inflows—from USD698.01 million in net outflows in 2023 to the current positive figure.
From January to September 2024, the Philippines posted net inflows of USD3.023 billion, contrasting sharply with the USD387.24 million in net outflows during the same period in 2023.
In the main, portfolio flows are useful as a gauge on foreign fund managers’ sentiment or view of economies like the Philippines as investment destinations. But the economic managers would rather that such investments come in direct form, such as when invested in domestic endeavors that generate employment for Filipinos or tax revenue for the nation’s coffers.
The BSP emphasized that registering inward foreign investments with authorized agent banks remains optional, primarily facilitating foreign exchange transactions related to capital repatriation and earnings remittance. This flexible policy approach is fostering a favorable environment for foreign investment, underscoring strong confidence in the Philippines’ economic trajectory.
