FDI net inflows fall 40% in October

NET INFLOWS of foreign direct investments (FDI) into the Philippines plunged nearly 40% year on year in October, as foreigners’ net investments in debt instruments slumped.

- By Katherine K. Chan Reporter

Based on preliminary Bangko Sentral ng Pilipinas (BSP) data, FDI net inflows declined by 39.8% to $642 million in October from $1.067 billion in the same month in 2024.

Despite this, October saw the highest monthly FDI level in three months or since the $1.271-billion net inflows posted in July.

Month on month, inflows more than doubled (100.6%) from the five-year low of $320 million in September.

“Foreign direct investments into the Philippines posted net inflows of $642 million in October 2025,” the BSP said ina statement released late on Monday. “Japan was the top source of FDIs, while corporations engaged in financial and insurance activities were the biggest recipients of FDIs during the month.”

‘The year-on-year decline came as nonresidents’ net investments in debt instruments plummeted by an annual 50.7% to $437 million from $888 million.

However, this was tempered by higher inflows recorded across other FDI components.

Investments in equity and investment fund shares jumped by 14.5% to $205 million in October 2025 from $179 million in the same month in the previous year.

Nonresidents’ net investments in equity capital, other than the reinvestment of earnings, jumped by 17.1% to $117 million in October from $100 million a year earlier.

Broken down, equity capital placements grew by 10.7% to $135 million in October from $122 million ayear ago, while withdrawals dropped by 17.4% to $19 million from $23 million a year ago.

Meanwhile, reinvestment of earnings rose by 11.3% year on year to $88 million in October from $79 million a year ago.