Foreign direct investment (FDI) inflows into the Philippines rose by 21.3 percent year-on-year in May, reaching US$586 million from US$483 million in May last year, according to the Bangko Sentral ng Pilipinas (BSP). The increase was mainly attributed to a surge in nonresidents’ net investments in debt instruments, which jumped by 88.3 percent to US$427 million.
This rebound in May FDI was led by inflows from the United States, with the manufacturing, real estate, and utilities sectors as the primary recipients. Reinvestment of earnings remained stable at US$97 million, while equity capital placements fell sharply by 61.4 percent, dropping to US$62 million, dampening overall growth.
Despite the strong May performance, cumulative FDI inflows for January to May 2025 contracted by 26.9 percent, totaling US$3 billion, down from US$4 billion in the same period last year.
The BSP noted that the rise in intercompany borrowings helped offset weaker equity placements, signaling continued investor confidence in Philippine subsidiaries but also reflecting a more cautious stance on long-term equity commitments.
