Foreign direct investment in the Philippines fell 40.5% year-on-year in August.

In August 2025, the Philippines’ net foreign direct investment (FDI) decreased by 40.5% year-on-year to $500 million.

This significant decline was mainly attributed to debt instrument investments (down 73.8%), while reinvested earnings also showed a decrease (down 3.6%).

In contrast, equity capital investment saw substantial growth (up 121%). During the first eight months of 2025, most equity capital investments came from Japan, the United States, Singapore, and South Korea.

These investments primarily flowed into manufacturing, which accounted for the largest share, followed by wholesale and retail trade, and real estate.

Cumulatively, net FDI inflows dropped by 22.5%, falling from $6.7 billion between January and August 2024 to $5.2 billion during the same period in 2025.