PH posts $560-M FDIs in December

News | National Posted on 2026-03-11 01:30:55

MANILA – The Bangko Sentral ng Pilipinas (BSP) reported that foreign direct investments (FDIs) recorded net inflows of USD560 million in December last year, higher than the USD427 million registered in the same month in 2024.

Data released late Tuesday showed that Japan was the biggest source of FDI during the period, with most investments directed toward the financial and insurance sectors.

FDIs refer to investments made by a non-resident investor in a local enterprise in which the foreign investor owns at least 10 percent equity. These investments may also include transactions between a non-resident subsidiary or associate and its resident direct investor.

According to the BSP, FDIs may come in several forms, including equity capital, reinvested earnings, and borrowings.

Despite the December increase, overall FDI net inflows for January to December 2025 declined to USD7.8 billion, compared to USD9.4 billion recorded in the previous year.

Most equity capital placements during the year came from Japan, the United States, Singapore, and South Korea.

The BSP said these investments were mainly channeled into the manufacturing, wholesale and retail trade, and financial and insurance sectors.

Michael Ricafort, chief economist of Rizal Commercial Banking Corporation, attributed the decline in FDIs last year partly to political uncertainties that caused some investors to adopt a “wait-and-see” approach.

He added that in the coming months, improvements in governance and the implementation of reforms could help strengthen investor confidence and encourage more foreign investments into the country.

NPO NEWS TEAM | PNA - PR

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