Philippines posts USD 320M FDI inflows in September

Foreign direct investments into the Philippines recorded net inflows of USD 320 million in September 2025, driven largely by equity and debt placements from Japan, according to data released by the Bangko Sentral ng Pilipinas (BSP).

Japan was the month’s top source of foreign direct investment, while the manufacturing sector received most of these inflows.

Cumulative FDI net inflows reached USD 5.5 billion from January through September 2025, based on BSP data and the accompanying charts detailing the composition of inflows in recent years.

Equity capital placements in the first three quarters came primarily from Japan, the United States, and Singapore, reflecting sustained investor interest in the region.

Manufacturing, wholesale and retail trade, and real estate industries received most of the equity capital during the period, according to the central bank.

FDI net inflows during the first three quarters were equivalent to 1.6 percent of the country’s gross domestic product, based on official BSP calculations.

The BSP reiterated that its FDI statistics follow the Balance of Payments and International Investment Position Manual, 6th Edition, which counts only actual investment inflows in equity, reinvested earnings, and intercompany borrowings.

The central bank noted that its methodology differs from the Philippine Statistics Authority’s foreign investment reporting, which reflects investment commitments from investment promotion agencies and does not apply the 10 percent foreign ownership criterion.

Tables in the release show that equity other than reinvestment of earnings reached USD 905 million in the January–September 2025 period, while reinvestment of earnings totaled USD 1 billion. Net investments in debt instruments amounted to USD 3.632 billion over the same period.

Monthly figures indicate that September 2025’s USD 320 million net inflow represented a 25.8 percent year-on-year decline, aligned with a broader slowdown in nonresident investments in debt instruments. Net debt inflows in September reached USD 201 million, compared with USD 338 million a year earlier.

Equity placements in September amounted to USD 99 million, with withdrawals totaling USD 64 million for a net equity inflow of USD 35 million.

Reinvestment of earnings reached USD 84 million in September, slightly lower than the USD 86 million recorded in the same month of 2024.

Despite the overall year-on-year decline, cumulative inflows show continued investor engagement with key Philippine industries, alongside signs of recalibration amid global economic uncertainties.