THE Department of Trade and Industry (DTI) said the expansion of foreign direct investment (FDI) in the first quarter indicates growing global confidence in the Philippines.
“The 42.1% surge in first quarter FDI net inflows year-on-year highlights global confidence in the Philippines as a preferred investment destination,” Trade Secretary Alfredo E. Pascual said in a statement on Monday.
“The investment increase is across diverse sectors, underscoring our dynamic economic landscape and strategic potential,” he added.
The Bangko Sentral ng Pilipinas reported on Monday that FDI net inflows amounted to $3 billion in the first quarter.
In March, FDI net inflows grew 23.1% to $686 million, with Japanese investments accounting for 64% of the total.
The other top sources of FDI in March were Singapore (16%) and the US (10%).
For the quarter, the top FDI sources were the Netherlands (68%) and Japan (21%).
“The significant increase in equity capital from key partners like Japan, Singapore, and the US reflects strengthened bilateral relations and continued economic opportunities,” Mr. Pascual said.
“The positive trends follow our investment promotion efforts in these countries, among others. These engagements have been pivotal in bolstering investor confidence and forging stronger economic partnerships,” he added.
Investments in March were mostly in manufacturing, which accounted for 66% of the total. It was followed by financial and insurance (14%), real estate (11%), and others (9%).
In the three months to March, the top industry was financial services and insurance, which accounted for 71% of all net inflows. It was followed by manufacturing (16%), real estate (5%), and others (8%).
“As the country prioritizes infrastructure development, economic stability, and investor-friendly reforms, the DTI under the Marcos Jr. administration remains committed to fostering an environment conducive to long-term investments and sustainable growth,” Mr. Pascual said.
“Our goal is to ensure that investment inflows translate into meaningful economic opportunities and improved quality of life for all Filipinos,” he added. — Justine Irish D. Tabile
