FDI inflows hit 4-month high in November

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February 11, 2026 | 12:00am

MANILA, Philippines — Foreign direct investment (FDI) inflows into the Philippines rose for a second consecutive month in November, offering early signs of stabilization after a softer stretch marked by political noise, adverse weather disruptions and global trade uncertainties.

Data released by the Bangko Sentral ng Pilipinas (BSP) showed net foreign direct investments stood at $897 million in November 2025, marking the highest monthly level in four months or since the $1.27 billion in July.

The November outturn was also an improvement from the $642 million recorded in October, bringing inflows closer again to the $1-billion mark. Still, it was a tad lower than the $900 million a year ago.

By source, South Korea emerged as the leading contributor to FDI inflows in November, with most investments directed to the manufacturing sector.

On a cumulative basis, net FDI inflows for January to November 2025 fell by 22.1 percent to $7.1 billion from $9.08 billion a year prior, reflecting a more cautious investment environment over much of the year.

Based on the data, investments in debt instruments fell by 26.6 percent to $4.78 billion in the 11-month period. These consist mainly of intercompany borrowing between foreign direct investors and their subsidiaries in the Philippines.

Total reinvestment of earnings inched up to $1.15 billion from the $1.08 billion generated in 2024. But equity other than reinvestment of earnings dropped by 23.5 percent to $1.14 billion from $1.49 billion.

For the January to November period, equity capital placements were sourced mainly from Japan, the United States, Singapore and South Korea, and were channeled largely into manufacturing, wholesale and retail trade and real estate industries, the BSP said.

Equity withdrawals rose by 21.1 percent to $596 million from January to November 2025 from $492 million in the same period in 2024.

SM Investment Corp. group economist Robert Dan Roces said the month-on-month pickup suggests inflows may be finding a floor after months of weakness.

“(The latest FDI) show stabilization after a softer stretch. Some delayed equity placements and reinvested earnings likely came through, which tells you investors are pacing commitments, not exiting. The near-flat year-on-year print suggests sentiment is holding, though still selective,” Roces said.

He also noted that December inflows could still surprise on the upside, depending largely on timing.

“A positive December is possible if firms book year-end reinvestments or intercompany loans, but that will depend more on timing of flows than a sudden shift in confidence,” he said.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the gradual improvement in recent months points to easing downside risks, even as full-year figures remain weaker than last year.

Ricafort noted that the decline in FDIs earlier in 2025 was driven by a combination of external and domestic factors, including higher US tariffs, trade wars and protectionist policies that slowed global trade and investments as well as local political noise that intensified around September and encouraged a wait-and-see stance among some investors.

He also cited adverse weather conditions, including a series of typhoons and floods since July, which reduced business and working days and weighed on economic activity and data reporting.

These headwinds were partly offset, he said, by lower global and domestic interest rates. Since late 2024, the US Federal Reserve has cut policy rates by 175 basis points, while the BSP has reduced its key rates by 200 basis points, helping ease borrowing and financing costs for investment projects.