Foreign Direct Investment Plunges 44.1% in July as Marcos Courts Investors in Singapore

**Foreign direct investment into the Philippines fell 44.1 percent year on year in July, the Bangko Sentral ng Pilipinas (BSP) reported, even as President Marcos spent the week pitching the country to investors in Singapore.** According to preliminary BSP data reported by the Daily Tribune's Toby Magsaysay on Oct. 13, net FDI inflows were $689 million in July, against $1.23 billion in July 2025. July was higher than June, when net inflows were $447 million. ## The numbers The drop was driven largely by debt instruments, which fell to $365 million from $717 million a year earlier, per the Tribune. For January to July, net FDI inflows totaled $4.07 billion, down 23.9 percent from $5.35 billion in the same period of 2025. Within that, net investments in debt instruments fell 30.6 percent to $2.43 billion from $3.5 billion, and reinvestment of earnings fell 14.1 percent to $968 million from $1.13 billion. The BSP said the decline reflected lower net inflows across all major FDI components, the Tribune reported. The BSP's figures measure actual net flows, which differ from the Philippine Statistics Authority's approved investment figures that track commitments and may not materialize in the same period, the Tribune noted. ## The pitch and the context The Tribune noted that investor confidence has faced pressure since last year's flood control scandal. The government has been promoting the Luzon Economic Corridor and the Pax Silica initiative, and has adopted tax agreements and international taxation standards to ease doing business for foreign investors. Marcos led a delegation to Singapore for the 24th Forbes Global CEO Conference, where he said he would "meet with business leaders and investors from Singapore and around the world," per the Tribune. Mitsubishi Corp. announced a fresh $700 million investment in Ayala Corp., increasing its stake in the conglomerate. Officials also sought investments in logistics, manufacturing and renewable energy. The trip drew criticism over Marcos's planned attendance at the Singapore Formula 1 Grand Prix, announced as September inflation data showed faster price growth. Marcos called the timing a "happy coincidence." Palace Press Officer Claire Castro defended the attendance as supporting investment promotion, noting that business relationships are sometimes built at social events such as golf, the Tribune reported. ## What is still unknown The BSP data cover July only; the Tribune's report does not say what the government expects for the rest of the year or whether the pledges made in Singapore will convert into actual inflows. No government response to the July figure was included in the report. ## Context Pulpulitiko has reported that S&P cut its 2026 growth forecast to 2.9 percent and Bank of America sees growth staying below 3 percent, and that September inflation hit 7.2 percent. A 23.9 percent drop in foreign direct investment through July adds to that picture. *Analysis: Announcements of investment commitments are easy to produce at a conference. The BSP's net flow figures are the number that shows whether money actually arrived, and so far it has not.* ## Sources - Toby Magsaysay, "BSP: foreign investments plunge 44.1 percent in July," Daily Tribune, Oct. 13, 2026 — https://tribune.net.ph/2026/10/13/bsp-foreign-investments-plunge-441-percent-in-july