Investors optimistic despite 2025 setbacks

Investment promotion agencies are looking ahead to 2026 with optimism, citing a strong pipeline of investment pledges for evaluation, even as they report a mixed outlook on investment approvals for this year, amid global and domestic headwinds that are affecting investor sentiment.

- By LOUELLA DESIDERIO

The year 2025 was marked by uncertainties, including the US’ protectionist policies and higher tariffs on its trade partners, including the Philippines, which led investors to take a cautious approach in making investment commitments.

On the domestic front, a flood control controversy involving allegations of public officials receiving kickbacks, collusion among contractors and ghost and substandard projects has weighed on investor sentiment.

These challenges were reflected in project commitments approved by investment promotion agencies.

In particular, investment pledges approved by the Board of Investments (BOI) as of mid-December reached P843.24 billion, short of the P1.75 trillion target for the year.

From January to November, investments approved by the BOI declined by 48 percent to P816.81 billion from P1.58 trillion in the same period last year.

Trade Secretary and BOI chair Cristina Roque said that while there are P1 trillion worth of projects in the pipeline for evaluation that can increase the approvals for the current year, the agency is unsure if these can be processed and cleared within the year.

Trade Undersecretary and BOI managing head Ceferino Rodolfo said it is unclear whether the investments can be evaluated this year due to the endorsements and certifications required from other government agencies.

The pipeline includes three hydroelectric projects, four offshore wind projects, two air transport service projects and one transport infrastructure project.

While the BOI is uncertain about meeting the investment approvals target for the year, the project pipeline is providing the agency with an optimistic outlook for 2026.

Despite governance issues related to infrastructure projects, Rodolfo said investment inquiries have not slowed down.

However, he said some prospective investors have been asking about the flood control controversy and actions being taken by the government.