Philippines FDI net inflows hit $731 million in January

Foreign direct investment (FDI) net inflows to the Philippines fell by 20.0% to $731 million in January 2025, the central bank said on Friday.

This compared with net inflows of $914 million in the same month a year earlier.

The decline was mainly due to a 37.7% drop in non-residents' net investments in debt instruments to $519 million from $833 million.

Partially offsetting this was a shift to net inflows of $88 million in non-residents' net investments in equity capital, from net outflows of $11 million in January 2024. Reinvestment of earnings also increased by 36.0% to $125 million from $92 million.

Equity capital placements in January mainly came from Japan, the United States, Singapore, and Malaysia, and were primarily directed towards the manufacturing, financial and insurance, and real estate industries.

The Bangko Sentral ng Pilipinas (BSP) compiles FDI statistics based on the Balance of Payments and International Investment Position Manual, 6th Edition (BPM6). FDI includes investment where a non-resident direct investor holds at least 10% equity in a resident enterprise, as well as investments by non-resident subsidiaries or associates in their resident direct investor. FDI can take the form of equity capital, reinvestment of earnings, and borrowings.