FX.co ★ FDI into the Philippines Sinks 40.5% YoY in August

In August 2025, net foreign direct investment (FDI) in the Philippines experienced a significant drop, declining by 40.5% year-on-year to reach USD 0.5 billion. This steep fall was mainly attributed to a dramatic decrease in debt instruments, which plummeted by 73.8%. Additionally, there was a 3.6% decline in the reinvestment of earnings. However, equity capital saw a remarkable increase of 121%. During the first eight months of 2025, the majority of equity capital investments came from Japan, the United States, Singapore, and South Korea, with these funds largely being channeled into the manufacturing sector. The manufacturing sector garnered the largest portion of these investments, followed by wholesale and retail trade and the real estate sector. Overall, net FDI inflows decreased by 22.5% from USD 6.7 billion in the January–August period of 2024 to USD 5.2 billion in the corresponding period of 2025.