Foreign direct investments net $611-M in March

Foreign direct investments (FDI) posted net inflows of $611 million in March this year, according to data released by the Bangko Sentral ng Pilipinas (BSP), reflecting continued but slightly moderating investor activity.

The March figure was higher than the $485 million recorded in the same month last year, but 4.2 percent lower than February’s $638 million, indicating month-to-month fluctuations amid global uncertainty.

For the first quarter of 2026, total FDI net inflows reached $1.7 billion, suggesting sustained foreign interest in Philippine assets despite external headwinds.

FDI covers investments by non-resident investors who hold at least a 10 percent stake in local enterprises, including equity capital, reinvested earnings, and intra-company borrowings.

“The softer FDI numbers in March and in the first quarter of the year suggest that investors have become more cautious amid global uncertainty, rather than signaling a sharp deterioration in sentiment toward the Philippines,” said SM Investments Corp. group economist Robert Dan Roces.

BSP said equity capital and reinvested earnings remained broadly stable, signaling continued investor confidence in the country’s long-term growth prospects.

Major equity capital inflows came from Japan, the United States, and Singapore, with investments largely directed toward manufacturing, financial and insurance services, and real estate.

Roces noted that while sentiment remains generally positive, competition for global capital is intensifying, making policy consistency, infrastructure development, and efficient execution critical to attracting sustained investment.

Meanwhile, Rizal Commercial Banking Corp. chief economist Michael Ricafort said improved governance and government spending could help further boost investor confidence in the coming months.

He also cited expected investment inflows from Japan as a potential driver of stronger FDI performance ahead.