Negosyante News

February 11, 2025 12:52 pm

PH Investment Inflows Decline in November Amid Uncertainties – BSP

Manila, Philippines – Foreign direct investment (FDI) inflows into the Philippines saw a 19.8% drop in November 2024, as concerns over potential protectionist policies from US President Donald Trump weighed on investor sentiment, according to data from the Bangko Sentral ng Pilipinas (BSP).

FDI net inflows for the month reached $901 million, down from $1.123 billion in November 2023 and $1.022 billion in October 2024. The decline was primarily driven by:

  • A 17.9% decrease in nonresidents’ net investments in debt instruments ($791 million)
  • A 58.9% drop in net equity capital investments ($35 million from $85 million)
  • Reinvestment of earnings remained steady at $74 million

Key Investment Sources & Sectors

Japan led foreign equity capital placements at 49%, followed by the United States (24%) and Singapore (17%). The top industries receiving investments were:

  • Manufacturing (49%)
  • Real estate (25%)
  • Financial and insurance (9%)
  • Administrative and support services (5%)

Despite the decline in November, total year-to-date FDI net inflows for 2024 stood at $8.580 billion, up 4.4% from $8.220 billion in the same period of 2023.

Factors Behind the Decline

According to RCBC chief economist Michael Ricafort, the dip in FDI inflows was influenced by:

  1. Uncertainty over US protectionist measures under Trump, who won the November 5, 2024, elections.
  2. Investor wait-and-see approach regarding the CREATE MORE Act, signed by President Ferdinand “Bongbong” Marcos the same month. The law aims to boost economic recovery by lowering corporate income tax rates and streamlining investment approval processes.

With global economic shifts and local tax reforms in play, investors are closely monitoring the Philippines’ investment climate in 2025.

No comment yet, add your voice below!


Add a Comment

Your email address will not be published. Required fields are marked *

Subscribe to Our Newsletter and get a free pdf:

Sign Up for negosyante news

and receive a copy of The Crypto Cheat Sheet (PDF)
and NFT Cheat Sheet for free!

* indicates required