FDI into the Philippines Down 39.2% in January

Net foreign direct investment (FDI) in the Philippines dropped by 39.2% year-on-year to USD 0.4 billion in January 2026. This marked the lowest level since September 2026, suggesting that rising geopolitical risks are weighing on investors sentiment. Net inflows declined across all major FDI components, including reinvestment of earnings (-56.8%), debt instruments (-38.4%), and equity capital (-19.9%). Equity capital placements during the month mainly originated from Japan, the United States, and South Korea, with investments directed largely toward manufacturing, real estate, and wholesale and retail trade industries. In 2025, FDI net inflows reached USD 7.8 billion, down 17.1% from the USD 9.4 billion recorded in 2024.

Net direct investment (FDI) in the Philippines climbed 31.1% year-on-year to USD 0.6 billion in December 2025. Net inflows rose 2.6% in reinvestment of earnings, while equity capital surged by 800%. Meanwhile, debt instruments declined 8.8%. During the month, Japan was the leading source of FDI, with most inflows allocated to financial and insurance activities. For the full year 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 financial and insurance industries. In cumulative terms, FDI reached USD 7.8 billion, down 17.1% from the USD 9.4 billion recorded in the same period last year.

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.