towards Katherine K. Chan
Net inflows of Direct Investment (FDI) in the Philippines hit their lowest monthly level in more than five years in September, the Bangko Sentral NG Pipipinas (BSP) said on Wednesday.
Based on advanced banking data, FDI Net inflow fell by 25.8% to $320 million from $432 million last year.
This marked the lowest monthly FDI in more than five years or since $313.79 recorded in April 2020.
Month over month, burning decreased by 37.7% from $514 million in August.
“Filipino foreign direct investment posted an inflow of $320 million by September 2025,” the BSP said in a statement on Wednesday. “Japan was the top source of FDIS, while producing it was the top recipient of FDIS during the month.”
Investments in the formation of Equity funds and Investment Fund Warses rose by 27.8% to $ 120 million in September from $ 94 million in the same month in 2024.
The total investment in Equity Capital Other than the renewal of the money received was included in $ 35 million, almost five times (378.2%) $ 7 million saw the year before.
Decommissioning, cash deposits made by the year up 20.8% year over year to $99 million, while withdrawals fell by 14.4% to $64 million.
Repayments received for nonremissions also increased by 2.1% to $84 million in September from $86 million a year ago.
At the same time, the existing investment in debt instruments decreased by 40.7% to $ 2016 MIBIRION from $ 338 million a year earlier.
This consisted mainly of InterCompany lending or borrowing between foreign investors and their sponsors or contacts in the Philippines, according to the central bank.
Union Bank of the Philippines Chief Carlo O. Asuncion said a combination of global and domestic factors Dudged FDI Net Dungelwa Ama FDI NET ONLOWS ON COUPLENO AND NATIS I AM IN THE HOLY WAY.
“Globally, investors remain cautious amid slow growth in the macro economy and geopolitical uncertainty,” he said in a Viber message.
“In time, while the changes are more constructive (financial recovery and business tax incentives to increase the re-strengthening of eCemples) Systematic problems of policies and policy problems continue to gain confidence from investors.”
Economists have said the flood control debate has linked government officials, lawmakers and private contractors to a massive public corruption scandal that has weighed on business and investor sentiment.
At that time, Jonathan L. Ravelas, a senior consultant at Reyes Tacandong & Co, also pointed out the melting of foreign investment of high borrowing costs.
“September FDI hit a five-year low reflecting global uncertainty, high borrowing costs, and restrictive policy gaps,” the Viber message said.
FDI lower nine FDI
In the first nine months of 2025, FDIS decreased by 22.2% to $ 5.537 billion from $ 7.118 billion in the same period last year.
This, as investments in Equity and Investment Fund Alveres stood at $ 1.905 billion as of September, down 16.8% from $ 2.289 billion last year.
Net foreign investment in Equity Capital, excluding reinvestment of earnings, fell 33.3% year-on-year to $905 million at End-September from $1.357 billion last year.
Deposits of equity capital decreased by 18.3% to $ 1.463 billion, while withdrawals increased by 28.7% to $ 558 million.
In the nine-month period, deposits mainly came from Japan, the United States and Singapore, the central bank said.
“Industries that received most of these funds were manufacturing, trade and retail and real estate,” the BSP added.
On the other hand, revenue recovery increased by 7.3% year over year to $1 billion at the end of September from $932 million previously.
The BSP data also shows that the non-debt-free investment of affiliates was $3.632 billion as of September from the same year.
According to the central bank, the total amount of FDI Net-nine months to September accounted for 1.6% of the country’s gross domestic product.
Mr Rallulas said meeting the BSP’s $7.5-billion fdi inflow forecast by 2025 is “possible but difficult.”
“With $5.5 billion so far, hitting the BSP’s $7.5-billion Target will require a strong Q4 recovery – possible but difficult without new reforms,” he said. “[There could be] Modest entry into production and commercial creations if confidence improves. “
He added that the local manufacturing and construction sectors could see modest gains in foreign investment if investors are confident.
“For businesses, now is the time to push transparency and competition to attract capital,” he said.
At that time, Mr. Asuncion noted that the performance of the country’s policy and the investment climate will determine whether it can strengthen the development in FDI Iloflows.
“Looking ahead, we expect a modest recovery in FDI inflows as reforms gain momentum, but further improvement will depend on consistent policy execution and a competitive investment environment,” he said.
