Foreign Investments See Lower Net Outflows in January 2025

Foreign investments registered with the Bangko Sentral ng Pilipinas (BSP) through authorized agent banks recorded net outflows of $283.69 million in January 2025. This was a decrease from December 2024, which saw net outflows of $487.37 million. The difference of $203.68 million, or 41.8 percent, indicates a smaller withdrawal of foreign funds from the country.

Gross inflows for January reached $1.32 billion, marking a 25 percent increase from December’s $1.06 billion. Most of these investments, or 67.9 percent, were placed in Peso government securities, while the remaining 32.1 percent went to Philippine Stock Exchange (PSE)-listed securities.

The investments in PSE-listed securities were mainly in banking, transportation, property, holding firms, and food, beverage, and tobacco sectors. The United Kingdom, Singapore, the United States, Ireland, and Luxembourg were the primary sources of these investments, contributing 89 percent of the total.

Gross outflows, on the other hand, reached $1.6 billion in January 2025, up by 3.9 percent from December’s $1.54 billion. The United States remained the main destination for these outflows, receiving $559.27 million or 34.9 percent of the total.

Compared to the same period last year, registered investments in January 2025 were higher by 6.8 percent, while gross outflows increased by 22.2 percent. The net outflows of $283.69 million in January 2025 were significantly higher than the $75.83 million recorded in January 2024, reflecting a 274.1 percent increase.

The registration of foreign investments with BSP through authorized agent banks is optional. Investors are only required to register if they intend to buy foreign exchange from banks for repatriation of capital and remittance of earnings.
Unregistered investments can still be repatriated, but investors must source foreign exchange outside the banking system.

The lower net outflows in January suggest that more foreign investors are maintaining or increasing their investments in the country. While gross outflows rose, the higher inflows indicate growing confidence in government securities and key business sectors.

However, the increase in year-on-year outflows highlights the ongoing volatility in foreign investment movements. (ASC)