FX.co ★ FDI into the Philippines Drops 20% YoY in January

In January 2025, net foreign direct investment (FDI) in the Philippines experienced a 20% decrease from the same period the previous year, totaling USD 0.7 billion. This decline was largely attributed to a significant reduction in debt instruments, which fell by 37.7%. In contrast, equity capital witnessed a substantial increase, surging by 876.4%, and there was a 36% rise in the reinvestment of earnings. Notably, equity capital investments during this period primarily originated from Japan, the United States, Singapore, and Malaysia, with these countries contributing 48%, 23%, 13%, and 8% respectively. The majority of these investments were channeled into the manufacturing, financial and insurance, and real estate sectors. Looking back at 2024, net inflows of FDI amounted to USD 8.9 billion, marking a modest increase of 0.1% over the previous year.