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Philippines' April FDI hits 3-month high at $610 mn, up 7.1% in Apr

11 Jul '25
2 min read
Philippines' April FDI hits 3-month high at $610 mn, up 7.1% in Apr
Pic: Shutterstock

Insights

  • Net FDI inflows into the Philippines rose to $610 million in April 2025, up 7.1 per cent YoY, led by Japanese investments in manufacturing, as per BSP.
  • Debt instruments drove the increase, while equity capital placements dropped 94.1 per cent.
  • Despite April's growth, January–April inflows fell 33.4 per cent to $2.4 billion, meeting only 24 per cent of the annual $10 billion target.
Net foreign direct investment (FDI) inflows into the Philippines rose to $610 million in April 2025, the highest in three months, driven by stronger investments in the manufacturing sector, particularly from Japan. The Bangko Sentral ng Pilipinas (BSP) reported a 7.1 per cent increase from the $570 million recorded in April last year.

“FDI into the Philippines remained positive in April 2025, with inflows from Japan and into manufacturing taking the lead,” BSP said in a press statement.

The BSP attributed the rise mainly to a 24.3 per cent year-over-year (YoY) increase in non-residents’ net investments in debt instruments, which reached $522 million. Reinvestment of earnings also edged up to $84 million from $82 million. However, equity capital placements—excluding reinvested earnings—fell sharply by 94.1 per cent, dropping from $68 million to just $4 million.

Japan emerged as the top contributor of equity capital, accounting for 32 per cent of total placements. It was followed by the United States (18 per cent), Singapore and South Korea (13 per cent each), and Taiwan (9 per cent). In terms of sectoral allocation, manufacturing attracted the largest share at 47 per cent, followed by financial and insurance activities and real estate, each drawing 16 per cent.

Despite April’s positive performance, FDI net inflows for the January–April period fell by 33.4 per cent to $2.4 billion, compared to $3.6 billion in the same period last year. This places the Philippines at 24 per cent of its $10 billion FDI target for 2025, which exceeds last year’s full-year inflow of $8.93 billion.

ALCHEMPro News Desk (SG)

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