NET foreign direct investments (FDI) surged to a four-month high in November but were lower compared to a year earlier, Bangko Sentral ng Pilipinas (BSP) data showed on Tuesday.
Net inflows for the month totaled $897 million, up 39.7 percent from October’s $642 million and the highest since the $13 billion seen in July. They were, however, just short of matching the $900 million posted in November 2024.
Year to date, net FDI inflows dropped 22.1 percent to $7.1 billion from $9.1 billion. Cumulative inflows have fallen since the start of 2025, attributed to heightened uncertainties.
Nonresidents’ net investments in debt instruments rose to $711 million in November from $437 million a month earlier, the BSP data showed. This dropped, however, from $791 million a year ago.
Reinvestment of earnings, meanwhile, dropped to $64 million from $74 million a year ago and $88 million in September, and equity capital placements rose to $122 million from $35 million and $117 million a year and a month earlier.
SM Investment Corp. chief economist Robert Dan Roces said November’s rise signaled that conditions were stabilizing after a period of softer performance.
“Some delayed equity placements and reinvested earnings likely came through, which tells you investors are pacing commitments, not exiting,” he said, adding that “the near flat year-on-year print suggests sentiment is holding, though still selective.”
“A positive December is possible if firms book year-end reinvestments or intercompany loans, but that will depend more on timing of flows than a sudden shift in confidence.”
Year to date, equity capital placements plunged by 23.3 percent to $1.14 billion from $1.5 billion in January-November 2024, while reinvestments of earnings rose 6.2 percent to $1.15 billion from $1.09 billion. Net investments in debt instruments slumped 26.6 percent to $4.78 billion from $6.51 billion.
The January-November placements originated mostly from Japan, the United States, Singapore and South Korea, the BSP said, with the top recipient sectors being manufacturing, wholesale and retail trade, and real estate.
The central bank expects net FDI to have hit $7.0 billion in 2025, down from $9.4 billion in 2024, and rebound to $7.5 billion this year. Both were lowered from previous projections of $7.5 billion and $8.0 billion, respectively.
The BSP’s FDI figures differ from those of other government agencies in that these cover actual investments. The Philippine Statistics Authority, in contrast, publishes approved foreign investments — commitments that may not be realized.
