Phl still attractive to foreign investors despite challenges

Despite mounting challenges—from persistent corruption concerns and high operating costs to the United States' recent decision to impose a 17 per cent tariff on Philippine exports—business and policy leaders maintain that the Philippines remains an attractive destination for foreign investment.

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Rafael Fernandez de Mesa, President and Chief Executive of Aboitiz Land Inc. and Head of Aboitiz Economic Estates, said that the current geopolitical and trade disruptions, while complex, are encouraging multinational firms to diversify their manufacturing and supply chain footprints, a shift that could play to the Philippines' advantage.

Competition across Asia has always been intense, but uncertainty has changed the investment calculus," Fernandez de Mesa said. "Businesses are no longer only looking for cost efficiency—they are diversifying risk. The Philippines may not have been the first choice before, but that's precisely why it has room to grow."

Over the past year, Aboitiz Economic Estates—one of the country's largest developers of industrial zones—has recorded steady inflows of capital from Japan, China, and Taiwan.

Fernandez de Mesa noted that at least 15 new investments were secured across its estates in Luzon and Cebu in 2025, including expansions from existing locators serving the U.S. and regional markets.