PHL investment slump seen to persist amid corruption probe

THE INVESTMENT OUTLOOK is expected to remain weak through next year unless reforms are implemented and those linked to the flood control scandal are jailed, economists said.

- By Aubrey Rose A. Inosante and Justine Irish D. Tabile Reporters

"If reforms and transparency improve, we could see a turnaround by mid-2026," Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co. said in a Viber message to Business World on Nov. 13.

Geopolitical tensions, unpredictable policy shifts, and weak global demand may also risk further weighing on investor sentiment, he added.

Data from the Philippine Statistics Authority showed foreign investment pledges approved by investment promotion agencies slumped by 48.7% to P73.68 billion in the third quarter.

Mr. Ravelas attributed this sharp drop in foreign investment approvals to the "shaken investor confidence" triggered by corruption concerns, policy delays, and global uncertainty.

"The message is clear: we need to restore trust and fast-track reforms to stay competitive," he added.

The government's sweeping corruption crackdown since August has hurt economic growth as well as consumer and investor confidence.

In the third quarter, gross domestic product (GDP) grew 4%, its weakest since 2021, as the corruption scandal slowed public spending. This brought the ninemonth average to 5%, lower than the government's 5.5-6.5% fullyear target for 2025.