South Korea leads Q1 foreign investment surge

Foreign investment approvals in the Philippines rose sharply in the first quarter of 2026, with approved inflows from investment promotion agencies reaching PHP 42.64 billion, up 52.31% from PHP 27.99 billion in the same period last year, the Department of Trade and Industry said, citing Philippine Statistics Authority data.

South Korea emerged as the country’s top source of foreign investments, contributing PHP 25.37 billion, or 59.51% of total approvals during the period.

Singapore followed with PHP 3.18 billion, while China placed third with PHP 2.54 billion, reflecting sustained regional investor interest in the Philippines.

Trade Secretary and Board of Investments Chairman Ma. Cristina A. Roque said the first-quarter performance showed that the Philippines remains a compelling destination for foreign investments.

“Under the leadership of President Ferdinand R. Marcos Jr., reforms that improve the ease of doing business and strengthen the country’s competitiveness helped drive more than 50% increase in foreign investment approvals in the first quarter. With South Korea accounting for nearly 60% of total inflows, the results reflect the strength of our economic partnership and continued investor confidence in the Philippines as a destination for high-impact investments that generate jobs and support economic growth,” Secretary Roque said.

Total IPA-approved investments reached PHP 125.95 billion in the first quarter, with domestic investments accounting for PHP 83.31 billion.

The approved projects are projected to generate 21,623 jobs for Filipinos, supporting employment creation and broader economic activity.

Among investment promotion agencies, the BOI remained the largest contributor to total approvals, registering PHP 58.20 billion from 50 projects.

Of the BOI-approved total, PHP 5.24 billion came from foreign investments, while PHP 52.96 billion came from local investments.

The BOI-approved projects are expected to generate 6,226 jobs.

Within BOI-approved foreign investments, Singapore led with PHP 2.97 billion.

China followed with PHP 762.80 million, while the United States contributed PHP 489.35 million.

Other notable BOI-approved foreign investment sources included the Netherlands and Canada.

South Korea also figured among BOI-approved investments through projects such as a 2.000 MWp / 1.600 MWac solar power project in Camotes Island, Cebu, with total project costs of PHP 93.95 million.

Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said the first-quarter results reflected the resilience of the Philippine investment landscape and the impact of reforms and targeted promotion efforts.

“This strong first-quarter performance sets the tone for sustained foreign investment inflows in the months ahead, driven by ongoing reforms, improved ease of doing business, and proactive investment promotion,” Undersecretary Rodolfo said.

Investment approvals were largely driven by the energy sector, including renewable energy, which accounted for PHP 29.58 billion, or 23.48% of total investments.

Accommodation and food service activities followed with PHP 24.03 billion.

Manufacturing accounted for PHP 21.89 billion, while real estate activities reached PHP 20.72 billion.

Investments in accommodation and food service activities surged by 917.7%, signaling renewed investor interest in tourism-related sectors.

Arts, entertainment and recreation posted growth of more than 3,000%, reflecting stronger investor appetite for consumer-driven industries.

The PSA separately reported that total approved investments from both foreign and Filipino nationals in the first quarter declined 30.8% from PHP 181.97 billion in the same quarter of 2025, even as foreign investment pledges increased year on year.

The BOI reaffirmed its commitment to advancing a whole-of-government approach to investment promotion, positioning the Philippines as a competitive and reliable investment destination while supporting sustained and inclusive economic growth.