Foreign investment approvals plunged 82 percent in the first quarter to a total P27.99 billion compared to P155.26 billion in the same period last year, according to the Philippine Statistics Authority (PSA).
The steep decline, reported by only 7 of the 13 Investment Promotion Agencies (IPAs), underscores ongoing investor caution amid global economic uncertainties and domestic policy recalibrations. IPAs with approved FI include the Board of Investments and the Philippine Economic Zone Authority, among others.
South Korea emerged as the top source of foreign investment pledges, committing P12.36 billion, around 44 percent of the total. The US and China followed with P3.08 billion and P2.88 billion, respectively.
Real estate activities attracted the highest foreign interest, receiving P10.79 billion, followed by manufacturing at P6.14 billion and administrative support services at P5.35 billion.
Central Luzon led in regional distribution, securing half of the pledges, or P14.90 billion. The National Capital Region and CALABARZON followed with 24 percent and 14 percent, respectively.
Total approved investments from both foreign and Filipino nationals fell 44 percent to P181.93 billion. Filipino investors accounted for P153.94 billion.
The electricity, gas, steam, and air conditioning sector drew the largest share of all investments at P61.98 billion.
Investment-related projects are expected to generate 31,848 jobs—down 4.7 percent from the first quarter of 2024—with nearly 61 percent tied to foreign-led projects.
