Foreign direct investment (FDI) inflows into the Philippines fell by 44.1 percent year on year to $689 million in July, bringing the seven-month total to $4.07 billion, data from the Bangko Sentral ng Pilipinas (BSP) showed.
July’s inflows were lower than the $1.23 billion recorded in the same month last year, but higher than the $447 million in net FDI inflows posted in June. The BSP said the July decline was driven largely by lower investments in debt instruments, which fell to $365 million from $717 million a year earlier.
Preliminary data from the central bank also showed that net FDI inflows reached $4.07 billion in the first seven months of 2026, down 23.9 percent from $5.35 billion in the same period last year.
The BSP said the decline reflected lower net inflows across all major FDI components.
Net investments in debt instruments fell by 30.6 percent to $2.43 billion from $3.5 billion in January to July 2025. Reinvestment of earnings declined by 14.1 percent to $968 million from $1.13 billion.
FDI covers investments by nonresident investors in Philippine enterprises in which they hold at least a 10-percent equity stake. It includes equity capital, reinvested earnings and borrowings. The BSP's FDI figures measure actual net investment flows, including equity placements less withdrawals. They differ from approved foreign investment figures published by the Philippine Statistics Authority, which track investment commitments sourced from investment promotion agencies and may not be fully realized during the period covered.
The latest BSP preliminary data follow efforts by the Marcos administration to attract more foreign investors. The government has pursued initiatives such as the Luzon Economic Corridor and the Pax Silica initiative, while adopting tax agreements and international taxation standards to improve the ease of doing business for foreign investors. These efforts come as investor confidence has faced pressure following last year’s flood control scandal.
Most recently, President Ferdinand R. Marcos Jr. led a Philippine delegation to Singapore to attract foreign investment. Marcos attended the 24th Forbes Global CEO Conference, where he said he would “meet with business leaders and investors from Singapore and around the world.”
Mitsubishi Corp. announced a fresh $700 million investment in Ayala Corp., increasing its stake in the Manila-based conglomerate, as government officials also sought investments in logistics, manufacturing and renewable energy.
However, Marcos drew public criticism after it was revealed that he would attend the Singapore Formula 1 Grand Prix. The announcement coincided with the release of September inflation data showing an acceleration in price growth.
Marcos described the timing of his visit as a “happy coincidence,” while Palace Press Officer Claire Castro defended his attendance at the race, saying it also supported the government’s investment promotion efforts.
“We know that sometimes businessmen build good rapport and good friendships with fellow businessmen while playing golf, and sometimes good contracts are formed there,” Castro said.
“So, if the President attends and watches the F1 Grand Prix at the invitation of the government, that does not mean the President is abandoning his job of encouraging investors to invest in our country.”
Stay informed
Get Daily Tribune in your inbox
Breaking news, opinion, and business coverage for readers in the Philippines and abroad.
Subscribe to the newsletterPrefer chat alerts? Join the Daily Tribune Viber community.