Foreign investments in the Philippines surged in September, nearly doubling compared to August and reversing the trend of money flowing out of the country recorded last year.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that foreign direct investment (FDI) net inflows reached $1.03 billion in September, a 92.1 percent increase from the previous month’s $533.95 million.

The September FDIs were also a turnaround from the net outflows recorded a year ago, amounting to $698 million.

Gross inflows during the month jumped 84.7 percent to $2.53 billion, from $1.37 billion a month earlier and a 185.2 percent increase year-on-year. 

The majority of these investments, 57.5 percent, were directed towards peso government securities, the remaining 42.5 percent flowed into Philippine Stock Exchange-listed securities, particularly in sectors like banks, holding firms, property, transportation services, and food, beverage & tobacco.

The leading sources of these investments were the United Kingdom, Singapore, the United States, Luxembourg, and Malaysia, collectively accounting for 88.4 percent of the total inflows.

While gross outflows also increased by 80 percent from the previous month to reach $1.51 billion, this was primarily due to profit repatriation and not indicative of declining investor confidence. The United States remained the primary destination for these outflows.

From January to September, the Philippines attracted net FDI inflows of $3.02 billion, an improvement from the net outflows recorded during the same period in 2023. (Derco Rosal)