The Philippines secured $8.9 billion in foreign direct investments in 2024, nearly unchanged from 2023, the Bangko Sentral ng Pilipinas (BSP) said Monday.
The figure was achieved despite the drastic drop in FDI net inflows in December to $110 million from $743 million a year earlier.
FDIs refer to investments by a nonresident direct investor in a resident enterprise, where the equity capital in the latter is at least 10 percent. They also include investments made by a nonresident subsidiary or associate in its resident direct investor. Foreign direct investment can be in the form of equity capital, reinvestment of earnings and borrowings.
Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said the sharply lower net FDI data in December 2024 could be partly attributed to the CREATE MORE implementing rules and regulations (IRR) being awaited by foreign investors and uncertainties related to possible protectionist policies by US President Donald Trump.
The CREATE MORE rules were released on Feb. 17, 2025.
Ricafort said the China-Philippine tension in the disputed waters and a series of typhoons/storms/floods that caused some business/economic disruptions in some areas also partly disrupted some FDIs into the country.
“For the coming months, the release of the CREATE MORE IRR could make foreign investors/FDIs to become more decisive in locating in the country amid enhanced incentives for foreign investors,” he said.
