Foreign direct investment (FDI) inflows to the Philippines fell 26.9 percent to $3 billion in the first five months of 2025 from $4 billion a year earlier, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.
Net FDI in May 2025 alone, however, rose 21.3 percent to $586 million from $483 million in May 2024, driven mainly by higher US investment in manufacturing.
Debt instruments were up 88.3 percent year-on-year in May at $427 million, but down 14.1 percent at $2.15 billion for January–May.
Reinvestment of earnings were nearly flat in May at $97 million, but up 6 percent at $445 million in the five months to May.
Equity capital, excluding reinvestment, fell 61.4 percent in May to $62 million. It dropped 67.6 percent to $364 million in the year-to-date.
In May, equity capital came mainly from the US at 36 percent, Japan 33 percent, Singapore 12 percent, and South Korea also 12 percent. In the year-to-date, Japan accounted for 39 percent, followed by the US at 21 percent, Singapore 14 percent, and South Korea 8 percent.
Nearly half or 49 percent of total FDI inflows went to manufacturing in May, followed by real estate, taking 14 percent, power supply 13 percent, and other sectors 24 percent.
For the first five months, the distribution was manufacturing at 48 percent, real estate at 20 percent, financial and insurance at 12 percent, and others at 21 percent.
The BSP noted that its FDI figures cover actual inflows, unlike Philippine Statistics Authority data, which reflect investment commitments.
The BSP expects net FDI to reach $7.5 billion this year and $8 billion in 2026, supported by growth prospects, easing inflation and reforms aimed at attracting foreign capital.
May alone saw a brighter spot as net FDI flows rose 21.3 percent to $586 million from $483 million in May 2024, driven mainly by higher US investment in manufacturing.
In May, equity capital came mainly from the US (36 percent), Japan (33 percent percent), Singapore (12 percent), and South Korea (12 percent). In the year-to-date, Japan accounted for 39 percent, followed by the US (21 percent), Singapore (14 percent), and South Korea (8 percent).
Nearly half of total FDI in May went to manufacturing (49 percent), followed by real estate (14 percent), power supply (13 percent), and other sectors (24 percent).
For the first five months, the distribution was manufacturing (48 percent), real estate (20 percent), financial and insurance (12 percent), and others (21 percent).
