FDI into the Philippines Sank to Decade Low

Net foreign direct investment (FDI) in the Philippines sank by 64.7% year-on-year to a more than decade-low of USD 210 million in May 2026. The decline was driven by lower net investments in debt instruments and reinvestment of earnings, which more than offset the increase in net equity capital investments other than reinvestment of earnings. In the first five months of 2026, net FDI inflows fell 33.4% year-on-year to USD 2.18 billion, as net investments in debt instruments dropped 49.5% to USD 1.25 billion and reinvested earnings declined 9.7% to USD 383 million, outweighing a 17.4% increase in equity capital investments to USD 925 million. Equity capital placements were sourced mainly from Japan, the United States, and Singapore and were directed primarily to the manufacturing, financial and insurance, and real estate sectors.

Net foreign direct investment (FDI) in the Philippines plunged 58.8% year-on-year to an almost a decade-low of USD 250 million in April 2026. The decline was driven by a 91.7% drop in net investments in debt instruments and a 1.9% decrease in reinvested earnings, which more than offset a 3,040.6% surge in equity capital investments other than reinvestment of earnings. In the first four months of 2026, net FDI inflows fell 26.5% year-on-year to USD 1.97 billion, as declines in net investments in debt instruments (-40.3%) and reinvested earnings (-14.0%) outweighed a 53.7% increase in equity capital investments. Equity capital placements continued to be sourced mainly from Japan, the United States, and Singapore and were directed primarily to the manufacturing, financial and insurance, and real estate sectors.

Net foreign direct investment (FDI) in the Philippines rose by 26.1% year-on-year to USD 611 million in March. The increase was driven by a 62.1% jump in net equity capital investments other than reinvestment of earnings, alongside a 26% rise in reinvested earnings and a 14.6% gain in net investments in debt instruments. Equity capital placements were largely sourced from Japan, the United States, and Singapore and were mainly directed toward the manufacturing, financial and insurance, and real estate sectors. Despite the annual gain, inflows were 4.2% lower than February’s USD 638 million. For the first quarter, net FDI inflows fell by 17% to USD 1.72 billion, as declines in debt instruments (-22.7%) and reinvested earnings (-17.9%) outweighed a 13.1% increase in equity capital investments. During the period, equity capital placements continued to be dominated by Japan, the US, and Singapore.