FDI hit 3-month high of $590M in February
Net foreign direct investment (FDI) inflows into the Philippines climbed to a three-month high of $590 million in February, just before the Middle East conflict rattled markets and damped investors’ appetite for risk.
Latest data from the Bangko Sentral ng Pilipinas (BSP) showed inflows exceeded outflows by $590 million during the month, the strongest net gain since November 2025’s $894 million.
Still, the figure was 31-percent lower than a year earlier.
In the first two months of the year, net FDI inflows totaled $1 billion, down 34.8 percent from the same period last year.
The central bank expects net inflows to reach $7.5 billion by the end of 2025.
Unlike foreign portfolio investments, which can vanish at the first sign of trouble, FDI tends to represent longer-term commitments that create jobs and support industrial growth. That said, the government has been working both to attract new investment and retain those already in the country.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the year-on-year drop in FDI was “largely a story of global caution rather than a loss of confidence in the Philippines.”
“Higher global interest rates, geopolitical tensions in the Middle East, and strong base effects from last year have made investors more selective and slowed deal timing,” Ravelas said.
“Faster inflation and softer growth add short‑term uncertainty, which tends to delay—not cancel—long‑term investments,” he added. “The month‑on‑month rebound tells us interest is still there, just uneven.”
Dissecting the BSP’s report, equity capital placements, a measure of new FDIs, reached $111 million in February while investments that headed for the exit stood at $10 million.
The bulk of the FDIs were in the form of intercompany borrowings between multinational firms and their Philippine affiliates.
