Foreign portfolio investments, or hot money, registered net outflows of $247 million in 2023, according to the Bangko Sentral ng Pilipinas.
This was a reversal of the $887-million net inflows recorded in 2022.
Data showed that investment inflows amounted to $12.9 billion last year, while withdrawals reached $13.1 billion.
The UK, the US, Singapore, Luxembourg and Japan were the top five investor countries in the Philippines, with combined share of 83.5 percent in 2023.
Transactions in Philippine Stock Exchange-listed shares resulted in net outflows of $1 billion, a reversal of the $179 million net inflows in 2022, while those for peso government securities recorded net inflows of $781 million, higher than the previous year’s $694 million net inflows.
The BSP said that in December, hot money also posted $205 million in net outflows, compared to the $673-million net inflows posted in November.
The BSP said the registration of inward foreign investments through banks is optional under the rules on foreign exchange (FX) transactions.
It is required only if the investor or its representative will purchase FX from AABs and/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of earnings that accrue on the registered investment.