‘Philippines falls behind in race for foreign investments’

The Philippines is falling behind in attracting foreign investments due to weak economic growth and political uncertainty, according to BDO Capital and Investment Corp. President Eduardo Francisco stated that foreign investors are less interested in the country, considering it negligible compared to other global investment indexes.

While Philippine companies have demonstrated strong earnings, their relatively small contribution to global investment benchmarks has made it easier for foreign fund managers to divert capital to other destinations. Foreign investments, primarily in listed stocks, government securities, and peso-denominated assets, have seen a net inflow of $66.47 million in July.

However, over a six-month period, there was still a net outflow of $3.94 billion, after consecutive monthly inflows. The recent weak performance of the economy, with a growth rate of 2.3% in the second quarter, may further diminish the nation's appeal for foreign investments. Political controversies and controversies have also contributed to dwindling sentiment.

Geronimo Law founder Russell Stanley Geronimo emphasized that despite the extensive economic liberalization measures, foreign direct investment (FDI) has not significantly increased due to unresolved issues such as high operating costs, policy uncertainty, and governance concerns. The data showed that net FDI dropped by 33.4% to $2.18 billion from January to May compared to $3.27 billion in the same period in 2025, with May inflows declining by 64.7% to $210 million from $595 million a year earlier.