Foreign investment commitments in the Philippines experienced a significant downturn during the third quarter of 2025, according to the latest data from the Philippine Statistics Authority.
Sharp Decline in Foreign Capital Inflow
Approved foreign investments plummeted by 48.7 percent to P73.68 billion from July to September 2025, compared to the P143.74 billion recorded during the same period in 2024. This substantial drop highlights growing challenges in attracting international capital to the country's economy.
Only seven out of thirteen investment promotion agencies reported foreign commitments during this quarter. Among the key agencies that submitted data were the Board of Investments, Philippine Economic Zone Authority, and several major freeport authorities across the nation.
Leading Sources and Sector Distribution
Singapore maintained its position as the top source of foreign investment pledges, contributing P20.26 billion or 27.5 percent of the total. Japan followed closely with P13.59 billion (18.4 percent), while the Cayman Islands ranked third with P13.14 billion (17.8 percent) in committed investments.
The manufacturing sector continued to dominate foreign investment interest, attracting P36.12 billion which represents 49 percent of all foreign approvals. The electricity, gas, steam, and air-conditioning supply sector captured the second largest share at P17.98 billion (24.4 percent), while real estate activities drew P11.86 billion (16.1 percent) in foreign commitments.
Regional Distribution and Overall Investment Picture
Calabarzon emerged as the preferred destination for foreign capital, securing P28.23 billion or 38.3 percent of the total regional allocation. Central Luzon followed with P16.42 billion (22.3 percent), while the Bicol region attracted P13.03 billion (17.7 percent) in foreign investment approvals.
When considering both foreign and domestic investments, the total approved investments reached P343.77 billion, reflecting a 36.1 percent decrease from the previous year. Filipino investors accounted for the majority share at P270.10 billion, representing nearly 79 percent of the total investment commitments.
The electricity and related utilities sector captured the largest portion of overall investments at P136.59 billion (39.7 percent), followed by transportation and storage at P56.64 billion (16.5 percent), and real estate activities at P48.73 billion (14.2 percent).
Approved projects for the quarter are projected to generate 27,605 jobs, though this represents a 17.3 percent decline in expected employment compared to the same period in 2024. This employment contraction underscores the broader economic implications of the investment slowdown.
