Foreign direct investment (FDI) to the Philippines rose 7.1% in April from a year earlier to $610 million, driven by a surge in nonresidents’ investments in debt instruments, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.
The BSP said that net inflows of debt instruments increased by 24.3% to $522 million from $420 million in April 2024, while reinvestment of earnings edged up 3.3% to $84 million.
However, equity capital placements plunged 94.1% to just $4 million, reflecting investor caution amid persistent global economic uncertainties.
Equity inflows, despite the drop, still came from key markets such as Japan, the United States, Singapore, South Korea, and Taiwan. These were mainly directed toward the manufacturing, financial and insurance, and real estate sectors, the central bank said.
From January to April, total net FDI stood at $2.4 billion, down 33.4% from $3.6 billion in the same period last year.
The BSP said foreign direct investment is a vital source of long-term capital, supporting employment, infrastructure development, and overall productivity. It reiterated that sustained reforms to enhance the country’s investment climate are key to drawing more foreign capital.
