Manila: Foreign direct investments (FDI) recorded net inflows of USD447 million in June this year, data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday showed. The amount marked a decrease from the USD638 million recorded in June of the previous year.

According to Philippines News Agency, the FDI net inflows for the first six months of the year also saw a decline, totaling USD3.38 billion compared to USD4.11 billion from January to June 2025. FDI includes investments by a non-resident direct investor in a resident enterprise where the former holds at least a 10-percent equity stake, as well as investments by a non-resident subsidiary or associate in its resident direct investor. These investments may take the form of equity capital, reinvestment of earnings, or borrowings.

The BSP attributed the decline primarily to a decrease in foreign net investments in debt instruments, which indicates lower intercompany borrowings and reinvestment of earnings. Despite the overall decline in FDI, there was an increase in equity capital investments. The central bank noted that the capital placements mainly originated from Japan, the United States, and Singapore, with investments directed towards the manufacturing, financial and insurance, and real estate sectors.

Jonathan Ravelas, Senior Adviser at Reyes Tacandong and Co., commented on the situation, noting that "Near-term FDI flows may remain soft, but the longer-term story will depend on how effectively the country converts reforms into actual investment projects." This statement underscores the importance of the country's ability to implement reforms that could potentially boost future FDI inflows.