FDI net inflows slump to 3-month low

NET INFLOWS of foreign direct investments (FDI) fell to a three-month low in March, with first-quarter inflows also dropping by more than 40% year on year, amid heightened global uncertainty arising from the US tariff policies.

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Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that FDI net inflows declined by 27.8% to $498 million in March from $689 million in the same month a year ago.

This was the lowest FDI level in three months or since the $110-million inflow posted in December.

"The said decline resulted from lower net inflows across all major FDI components," the BSP said.

Nonresidents' net investments in debt instruments of local affiliates plunged by 31.6% to $329 million in March from $481 million in the same month in 2024.

Nonresidents' net investments in equity capital, other than the reinvestment of earnings, declined by 27.4% to $102 million from $141 million year on year.

This came as equity capital placements dropped by 5.5% to $148 million. On the other hand, withdrawals nearly tripled (185.1%) to $46 million.

Equity placements in March mostly came from Singapore (25%), Japan (24%) and the United States (20%), as well as South Korea (9%) and Malaysia (5%).

"These were infused largely to the real estate; manufacturing; financial and insurance; and administrative and support services industries," the central bank said.

Reinvestment of earnings dipped by 1.2% to $66 million in March from $67 million a year ago.

Investments in equity and investment fund shares fell by 19% to $168 million in March from $208 million a year earlier.

FIRST-QUARTER SLIDE

In the first quarter, FDI net inflows plunged by 41.1% to $1.76 billion from $2.99 billion in the comparable year-ago period.