FDI into the Philippines Slips 39.8% in October

Net direct investment (FDI) in the Philippines fell 0.3% year-on-year to USD 0.9 billion in November 2025. This marked the highest level since July, but remained lower than the level recorded in November 2024, as net inflows decreased in reinvestment of earnings (-13.5%), and debt instruments (-10.1%). Meanwhile, the decline was tempered by a significant increase in equity capital (248.6%). During the month, South Korea was the leading source of FDI, with most inflows directed to the manufacturing industry. For the first eleven months of 2025, equity capital placements mainly originated from Japan, the United States, Singapore, and South Korea, with investments largely directed toward manufacturing, wholesale, and retail trade, and real estate. On a cumulative basis, net FDI reached USD 7.1 billion, lower by 22.1% from the USD 9.1 billion recorded over the same period last year.

Net direct investment (FDI) in the Philippines dropped 39.8% year-on-year to USD 0.6 billion in October 2025, primarily driven by a sharp decline in debt instruments (-50.7%). Meanwhile, the decrease was partly tempered by increases recorded from net inflows of equity capital (17.1%) and reinvestment of earnings (11.3%). Equity capital placements during the month mainly originated from Japan, the United States, and Singapore, with investments largely directed toward manufacturing, wholesale and retail trade, and real estate. Considering the January to October period, net FDI reached USD 6.2 billion, sharply lower by 24.5% from the USD 8.2 billion recorded over the same period last year.

Net direct investment (FDI) in the Philippines dropped by 25.8% year-on-year to USD 0.3 billion in September 2025. This marked the lowest level of net inflows since April 2020, primarily driven by a sharp decline in debt instruments (-40.7%) and the reinvestment of earnings (-2.1%). Meanwhile, the decrease was tempered by a significant increase recorded from net inflows in equity capital (378.2%). Equity capital replacements during the month mainly originated from Japan, the United States, and Singapore, with investments directed largely toward manufacturing, wholesale and retail trade, and real estate. Considering the January to September period, net FDI reached USD 5.5 billion, sharply lower by 22.2% compared with the corresponding period of the previous year. In the first three quarters of 2025, net FDI inflows totaled 1.6% of the country’s GDP.