Philippine FDI reaches USD 590 million in February

MANILA — Foreign direct investment into the Philippines posted net inflows of USD 590 million in February 2026, with the United States as the leading source and financial and insurance companies as the biggest recipients during the month, the Bangko Sentral ng Pilipinas said.

The February figure brought FDI net inflows to USD 1.033 billion, or about USD 1 billion, in January–February 2026.

The two-month level was 34.8 percent lower than the USD 1.584 billion recorded in January–February 2025.

For the first two months of 2026, equity capital placements came mainly from Japan, the United States, and Singapore.

The placements were channeled largely into manufacturing, financial and insurance, and real estate industries.

In February 2026, net FDI inflows were down 31.0 percent from USD 855 million in February 2025.

Net investments in debt instruments remained the biggest component at USD 414 million in February, down 39.1 percent from USD 680 million a year earlier.

Net equity other than reinvestment of earnings reached USD 101 million in February, down 6.4 percent from USD 108 million a year earlier.

Reinvestment of earnings rose 12.0 percent to USD 75 million from USD 67 million in February 2025.

Equity and investment fund shares stood at USD 177 million in February 2026, compared with USD 175 million a year earlier.

Equity placements reached USD 111 million in February 2026, while withdrawals amounted to USD 10 million.

In January 2026, net FDI inflows stood at USD 443 million, down 39.2 percent from USD 729 million in January 2025.

The January 2026 total included USD 70 million in net equity other than reinvestment of earnings, USD 53 million in reinvestment of earnings, and USD 320 million in net debt instruments.

The January–February 2026 total consisted of USD 171 million in net equity other than reinvestment of earnings, USD 128 million in reinvestment of earnings, and USD 734 million in net debt instruments.

In January–February 2025, net equity other than reinvestment of earnings totaled USD 196 million, reinvestment of earnings reached USD 189 million, and net debt instruments amounted to USD 1.199 billion.

The BSP compiles FDI statistics based on the Balance of Payments and International Investment Position Manual, sixth edition, or BPM6.

Under BPM6, FDI includes investment by a nonresident direct investor in a resident enterprise where the foreign equity stake is at least 10 percent.

FDI also includes investment made by a nonresident subsidiary or associate in its resident direct investor.

FDI can take the form of equity capital, reinvestment of earnings, and borrowings.

The BSP said its FDI figures differ from approved foreign investment data published by the Philippine Statistics Authority because BSP data cover actual investment inflows.

PSA data, which are sourced from investment promotion agencies, represent investment commitments that may not necessarily be fully realized in a given period.

The BSP’s FDI data are presented in net terms, meaning equity capital placements less withdrawals.

PSA foreign investment data do not account for equity withdrawals and are not based on the BPM6 10-percent foreign ownership criterion.

Net investments in debt instruments consist mainly of intercompany borrowing and lending between foreign direct investors and their subsidiaries or affiliates in the Philippines.

The remaining portion of net debt instruments covers reverse investment, or investments made by nonresident subsidiaries or associates in their resident direct investors.