By Tracy Cabrera
Despite reported pledges of Investments during President Ferdinand ‘Bongbong’ Marcos Jr. (PBBM)’s trips abroad, foreign direct investment (FDI) inflows into the Philippines plunged by 44.1 percent, according to the Bangkok Sentral ng Pilipinas (BSP).
In a bulletin, the BSP disclosed that the decline indicated year-on-year of US$689 million in July, bringing the seven-month total to US$4.07 billion.
Accordingly, July’s inflows were lower than the US$1.23 billion recorded in the same month the previous year, but higher than the US$447 million in net FDI inflows posted in June.
The BSP noted that the July decline was driven largely by lower investments in debt instruments, which fell to US$365 million from US$717 million a year earlier.
Preliminary data also showed that net FDI inflows reached US$4.07 billion in the first seven months of 2026, down 23.9 percent from US$5.35 billion in the same period last year.
“The decline reflects lower net inflows across all major FDI components. Net investments in debt instruments fell by 30.6 percent to US$2.43 billion from US$3.5 billion in January to July 2025. Reinvestment of earnings declined by 14.1 percent to US$968 million from US$1.13 billion,” the central bank pointed out.
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.
