Foreign direct investments into the Philippines picked up pace in October 2025, posting net inflows of USD642 million and lifting year-to-date totals to USD6.2 billion, signaling sustained investor interest despite a mixed global backdrop.
Japan emerged as the top source of capital during the month, underscoring its long-standing role as a key investor in the Philippine economy. Financial and insurance firms were the biggest recipients in October, reflecting continued appetite for exposure to the country’s expanding financial sector and rising demand for risk management and financial services.
On a cumulative basis from January to October 2025, equity capital placements were largely sourced from Japan, the US, and Singapore. These inflows gravitated toward manufacturing, wholesale and retail trade, and real estate—sectors seen as both growth-oriented and resilient amid shifting global supply chains and easing inflation pressures.
The Bangko Sentral ng Pilipinas (BSP) compiles FDI data using international standards under the Balance of Payments and International Investment Position Manual, 6th Edition. Under this framework, FDIs include equity investments of at least 10 percent ownership by a nonresident investor, as well as reinvested earnings and intercompany borrowings. Investments can flow both ways within multinational groups, capturing a fuller picture of cross-border capital movements.
The BSP noted that its FDI statistics differ from figures released by other government agencies. Unlike approved investment data from the Philippine Statistics Authority—which track investment pledges—the BSP reports actual, realized inflows and presents them on a net basis, accounting for equity withdrawals.
The steady October inflows suggest foreign investors remain selectively bullish on the Philippines, betting on structural reforms, domestic demand, and regional integration to anchor medium-term growth.
