The Bangko Sentral ng Pilipinas (BSP) reported that foreign direct investment (FDI) registered net inflows of US$498 million in March 2025, reflecting a 27.8 percent decline from the US$689 million recorded in the same month last year.
The year-on-year decrease was attributed to lower net inflows across all major FDI components. Net investments in debt instruments by non-resident investors declined by 31.6 percent to US$329 million, down from US$481 million in March 2024. Similarly, net equity capital investments (excluding reinvestment of earnings) fell by 27.4 percent to US$102 million, compared to US$141 million a year earlier. Meanwhile, reinvestment of earnings declined slightly by 1.2 percent, totaling US$66 million from the previous year’s US$67 million.
Equity capital infusions in March 2025 were primarily sourced from Singapore, Japan, the United States, South Korea, and Malaysia, with investments channeled mainly into the real estate, manufacturing, financial and insurance, and administrative and support services sectors.
For the first quarter of 2025, FDI net inflows amounted to US$1.8 billion, representing a 41.1 percent decrease from US$3.0 billion recorded during the same period in 2024. The decline reflects cautious investor sentiment amid continued global economic uncertainties and tightening financial conditions.
The BSP remains committed to promoting a favorable investment climate through sound macroeconomic management and policy support for long-term, sustainable economic growth.
