Sept. FDI inflows sink to 5-yr low

Largely due to a mix of onshore concerns stemming from the flood-control graft scandal, net inflows of brick-and-mortar foreign direct investments (FDI) in the Philippines dropped to $320 million in September—the lowest level since the $313.8 million recorded in April 2020, when the most stringent Covid-19 lockdowns were first imposed.

- BY DERCO ROSAL

The latest preliminary data from the Bangko Sentral ng Pilipinas (BSP) on Wednesday, Dec. 10, showed that September FDI inflows fell by over a quarter from $432 million in the same month last year.

Japan emerged as the primary source of FDIs during the month, with the manufacturing sector receiving the largest inflows.

Japan was likewise the top source of equity capital placements since January, followed by the United States (US) and Singapore.

"Industries that received most of these investments were manufacturing, wholesale and retail trade, and real estate," the BSP said.

As of end-September, net FDI inflows dropped 22.2 percent to $5.54 billion from $7.12 billion in the same period in 2024. It can be noted that year-to-date inflows were lower year-on-year since January.

Measured against the Philippines' FDI target of $10 billion this year, the nine-month total now stands at 55.4 percent. This year's target is higher than last year's $9.44 billion in attracted investments.