By Katherine K. Chan, A reporter
NET INFLOWS of foreign direct investmentwords (FDIs) went to the Philippines for four months in November, as revenues decline every year, said the Bangko Sentral ng Pilipinas (BSP).
Preliminary BSP data released on Tuesday showed that net FDI inflows fell 0.3% to $897 million in November from $900 million in the same month in 2024.
Month-over-month, revenue fell 39.7% from $642 million in October.
November saw the highest FDI inflow in four months or from $1.271 billion in July.
“Foreign direct investment in the Philippines generated an income of $897 million by November 2025,” the central bank said in a statement. “South Korea was the leading source of FDI, with a lot of inflows directed to the manufacturing industry on timeper month.”
Based on BSP data, investment in stocks and mutual fund shares increased 71.6% to $187 million in November from $109 million last year.
Total equity investments excluding reinvestment of earnings more than tripled to $122 million in November, up from $35 million posted in November 2024.
This, as equity capital inflows doubled year-on-year to $142 million from $71 million, while withdrawals fell 44.4% to $20 million from $36 million previously.
Meanwhile, reinvestment of earnings stood at $64 million, down 12.7% from $74 million last year.
Total investment in debt instruments fell 10.2% year over year to $711 million in November from $791 million a year ago.
According to the BSP, net investments in debt instruments mainly include intercompany borrowings or borrowings between foreign direct investors and their subsidiaries or affiliates in the Philippines. Some investments are made by subsidiaries of non-resident citizens or their affiliates to direct resident investors, otherwise known as reverse investment.
The economist of SM Investments Corp. Group Robert Dan J. Roces said the almost flat year-on-year change in FDI income shows stability but still favors investors.
“(It) is showing stability after a little easing,” he said in a Viber message. “Some delays in capitalization and reinvested earnings are likely to occur, which tells you that investors are committing to commitments, not exiting.”
11-MONTH SLUMP
Meanwhile, FDI fell by 22.1% to $7.077 billion at the end of November from $9.084 billion in the same period last year.
“In the first eleven months of 2025, the placement of equity funds was found mainly in Japan, the United States, Singapore and South Korea, and was concentrated in the manufacturing, retail and wholesale industries, and real estate industries,” the central bank said.
BSP data showed that investments in equity shares and investment funds reached $2.297 billion in the 11-month period, down 10.8% from $2.576 billion in the previous year.
This, as net foreign investment in equity, excluding reinvestment of earnings, fell 23.3% year-on-year to $1.144 billion during the same period from $1.491 billion.
For all, placements fell 12.2% year over year to $1.741 billion, while withdrawals rose 21.1% to $596 million.
On the other hand, reinvestment of earnings rose 6.2% to $1.152 billion in the period ending November from $1.085 billion a year ago.
However, the overall investment of non-residents in local af debt instrumentsfallies reached $4.78 billion, down 26.6% from $6.508 billion posted in November 2024.
FDIs account for the investment of foreign investors in local enterprises where they hold at least 10% of the equity capital, as well as the investment of a non-resident company or its affiliates in a resident direct investor. It can be in the form of equity, income reinvestment or loan.
The BSP’s FDI data covers actual investment flows, compared to the Philippine Statistics Authority’s foreign investment data which includes investment commitments that may not be fully realized over a period of time.
Jonathan L. Ravelas, senior consultant at Reyes Tacandong & Co., said the decline in net FDI inflows over the 11-month period shows that investors were more cautious last year.
“That mix suggests that the Philippines hasn’t lost investor interest — sentiment has just picked,” he said in a Viber message.
“The decline may reflect global uncertainty, domestic policy noise, and strong competition from our ASEAN (Association of Southeast Asian Nations) neighbors,” added Mr. Ravelas. “But the bump in November shows that when investors see clear direction and stability, they start to rally again.”
Mr. Roces said there could be an annual increase in FDI inflows by the end of 2025 if companies include year-end reinvestment or corporate borrowing, “but that will depend more on the timing of the flow than on a sudden change in confidence.”
Meanwhile, Mr. Ravelas said credible reforms, reducing uncertainty and quick implementation could improve the country’s investment climate.
“If the government maintains that clarity, we can turn that November momentum into a broader recovery,” he said.
