Philippines attracts $320 mn in September FDI as Japan leads inflows

Cumulatively, FDI net inflows reached $5.5 billion in January–September 2025, equivalent to 1.6 per cent of GDP for the period. Equity capital placements in the first three quarters were sourced mainly from Japan, the United States, and Singapore, directed largely towards manufacturing, wholesale and retail trade, the central bank said in a press release.

The broader trend reflects continued moderation in foreign investment. Net FDI has steadily declined from $11.98 billion in 2021 to $9.44 billion in 2024, with a further slowdown evident this year.

Inflows for January–September 2025 were lower than the $7.12 billion posted in the same period of 2024, driven by a sharp drop in debt instruments, which fell to $3.63 billion from $4.83 billion. Equity placements softened to $0.91 billion, while reinvestment of earnings remained stable at $1 billion, signalling ongoing confidence from existing investors.

Despite sustained reinvestment, the continued easing of total FDI highlights rising caution amid global uncertainty, elevated financing costs, and shifting investment priorities. Analysts note that policy reforms, clearer regulatory pathways, and measures to enhance competitiveness will be crucial to revitalising foreign investment momentum in the months ahead, added the release.

ALCHEMPro News Desk (SG)