Philippines Records $560 Million in FDI Inflows in December — BSP
MANILA – The Bangko Sentral ng Pilipinas (BSP) reported that foreign direct investments (FDIs) in the Philippines reached USD560 million in net inflows in December, higher than the USD427 million recorded in the same month in 2024.
Data released by the central bank on Tuesday showed that Japan emerged as the country’s top source of foreign investments, with the bulk of inflows directed toward financial and insurance-related activities.
Foreign direct investments refer to capital placed by a non-resident investor in a local enterprise where the foreign party owns at least 10 percent equity. FDIs also include investments made by a non-resident subsidiary or associate in its Philippine-based direct investor.
These investments may take the form of equity capital, reinvested earnings, or intercompany borrowings, according to the BSP.
Full-year FDI inflows decline in 2025
Despite the stronger performance in December, total FDI inflows for January to December 2025 declined to USD7.8 billion, down from USD9.4 billion recorded in the previous year.
The BSP noted that equity capital placements during the year largely originated from Japan, the United States, Singapore, and South Korea.
Most foreign investments were funneled into key sectors of the economy, particularly manufacturing, wholesale and retail trade, and financial and insurance industries, the central bank added.
Political noise cited as factor
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the overall decline in FDIs last year to political uncertainty, which prompted some investors to adopt a cautious stance.
“For the coming months, improved governance standards and reforms would help improve international investor confidence and sentiment, including for FDIs,” Ricafort said.
The BSP continues to monitor investment trends as global and domestic conditions evolve. (PNA)
