The Bangko Sentral ng Pilipinas (BSP) on Friday reported a shift in foreign investment flows for October 2024, with net outflows amounting to USD529.68 million. This marks a reversal from the previous month’s net inflows of USD1,025.77 million. The month’s data, which reflects transactions of foreign investments registered with the BSP through authorized agent banks, reveals a sharp contrast to the strong inflows seen in September, signaling a more cautious investment environment.
In total, the month saw USD2,009.55 million in gross outflows, a 33.4 percent increase from September’s USD1,506.06 million. Meanwhile, gross inflows of USD1,479.87 million were recorded, representing a 41.5 percent decline from September’s USD2,531.83 million.
The investment landscape for October was dominated by the Philippine Stock Exchange (PSE)-listed securities, which accounted for 54.5 percent (USD807.08 million) of total inflows. Leading sectors included banks, holding firms, transportation services, property, and food, beverage & tobacco. The remaining 45.5 percent of inflows were channeled into peso government securities (USD672.79 million).
Notably, the bulk of registered investments originated from key international markets, with the United Kingdom, Singapore, the United States, Luxembourg, and Malaysia contributing 87.8 percent of the total foreign inflows.
The outflows, however, were particularly pronounced in the United States, which received USD889.06 million, or 44.2 percent of the total outward remittances for the month. This increase in outflows suggests investors may be reallocating capital amid global market uncertainties.
Comparing year-on-year performance, October 2024’s registered investments of USD1,479.87 million represented a 55.1 percent increase from the USD954.38 million recorded in October 2023. Conversely, gross outflows rose by 56.7 percent compared to the same period last year, indicating heightened capital movement out of the country.
However, the year-to-date figures for 2024 reflect a more optimistic trend. From January to October, net inflows totaled USD2,494.12 million, a significant turnaround from the net outflows of USD715.43 million seen in the same period in 2023. This marks a marked improvement in foreign investor confidence year-to-date.
The BSP noted that the registration of foreign investments through authorized agent banks is optional, required only if the investor intends to purchase foreign exchange for capital repatriation or remittance of earnings. Without registration, foreign investors can still repatriate capital and remit earnings, but they must source foreign exchange outside the formal banking system.
The data underscores the economic significance of foreign investments, with fluctuations in inflows and outflows providing valuable insights into global investor sentiment and the broader economic landscape. The BSP’s monitoring of these transactions remains vital for ensuring the stability and health of the Philippine financial system.
