BSP reports 21% rise in FDI net inflows for May

Foreign direct investment (FDI) net inflows to the Philippines rose by over 21 percent in May 2025, driven largely by a surge in non-residents’ placements in debt instruments, the Bangko Sentral ng Pilipinas (BSP) reported Monday.

Data showed that FDI net inflows reached USD586 million in May, up from USD483 million in the same month last year. FDIs are investments made by a non-resident direct investor in a resident enterprise where the investor owns at least 10 percent equity, as well as investments by a non-resident subsidiary or associate in its resident direct investor.

These can take the form of equity capital, reinvested earnings, and borrowings.

According to the BSP, the growth was primarily due to an 88.3 percent year-on-year jump in net investments in debt instruments, from USD227 million in May 2024 to USD427 million in May this year.

Reinvestment of earnings was relatively stable at USD97 million. However, the gains were tempered by a 61.4 percent drop in net investments in equity capital, excluding reinvestment of earnings, from USD161 million to USD62 million.

Equity capital placements during the month came mostly from the United States, Japan, Singapore, and South Korea. These were channeled into the manufacturing, real estate, and electricity, gas, steam, and air conditioning supply industries.

The BSP said sustained investor interest in debt placements underscores confidence in the country’s economic prospects, even as equity capital inflows experienced a slowdown.