CREATE MORE Act seen as key driver of strong FDI Inflows in July

An economist has partly attributed the surge in foreign direct investments (FDIs) in July 2025 to the implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

Signed into law on November 11, 2024, CREATE MORE seeks to attract more investors to establish operations in the Philippines by offering incentives such as lower corporate income taxes and reduced local government fees and charges.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that net FDI inflows reached USD1.268 billion in July—among the highest since the pandemic—according to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort.

Although the figure was 7.5 percent lower than the USD1.37 billion recorded a year earlier, it was significantly higher than the USD376 million posted in June. The BSP reported that 89 percent of the July inflows came from Japan, mainly in wholesale and retail trade.

From January to July 2025, total net FDI inflows amounted to USD4.7 billion, down 20 percent from USD5.9 billion in the same period last year.

Ricafort described the July inflow as “decent,” noting that it remains above USD1 billion—an encouraging sign of sustained investor confidence in the Philippines.

He said the country’s strong domestic growth and favorable demographics, with a large working-age population, continue to make it an attractive investment destination.

“CREATE MORE made it more appealing for FDIs to locate in the country and helped narrow the gap in investment incentives with neighboring ASEAN economies,” Ricafort added.