Foreign direct investments (FDI) recorded net inflows of USD611 million in March this year, data released by the Bangko Sentral ng Pilipinas (BSP) showed.
The amount was higher than the USD485 million recorded in March last year but 4.2 percent lower than the USD638 million posted in February this year.
For the first three months of the year, FDI net inflows reached USD1.7 billion.
FDI includes investments by a non-resident direct investor in a resident enterprise in which the former holds at least a 10-percent equity stake, as well as investments made by a non-resident subsidiary or associate in its resident direct investor.
FDI may take the form of equity capital, reinvestment of earnings, or borrowings.
“From January to March 2026, foreign equity and reinvested earnings remained broadly steady, indicating continued investors’ confidence in the country,” the BSP said.
Equity capital placements came primarily from Japan, the United States, and Singapore. These were largely channeled into the manufacturing, financial and insurance, and real estate sectors.
“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,” Robert Dan Roces, group economist at SM Investments Corp., said.
Roces said inflows may gradually pick up if and when financing conditions improve.
However, competition for investment remains strong, making execution, policy stability and infrastructure delivery increasingly important in converting investor interest into actual investments.
Meanwhile, Rizal Commercial Banking Corporation chief economist Michael Ricafort said catch-up spending by the national government and improved governance standards would help boost investor sentiment.
Ricafort added that new foreign investment commitments from Japan would help improve FDI data in the coming months.PNA
