The philippines: The Philippines recorded foreign direct investments (FDIs) totaling USD6.2 billion by the end of October 2025, a decrease from the previous year's USD8.18 billion for the same period. An economist attributed this decline to overseas trade policies, weather disruptions, and domestic political noise.

According to Philippines News Agency, data from the Bangko Sentral ng Pilipinas (BSP) indicated that most equity capital placements during this period originated from Japan, the United States, and Singapore. These investments were directed towards manufacturing, wholesale and retail trade, and real estate sectors. In October 2025 alone, FDIs saw net inflows of USD642 million, primarily from Japan, with a focus on financial and insurance activities.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort highlighted that weather-related work disruptions and a cautious approach amid local and global political uncertainties significantly contributed to the lower FDI figures. However, he noted that these factors were partially countered by rate cuts from both the BSP and the US Federal Reserve, which reduced financing costs for FDIs.

Ricafort suggested that looking ahead to 2026, improved governance standards and reforms could enhance investor confidence and increase FDI inflows. He emphasized that stronger anti-corruption measures and governance reforms could support government spending, which was affected by underspending in late 2025 due to political controversies, including those surrounding flood control projects.

Ricafort further indicated that additional reductions in Fed and local policy rates in the coming months could make borrowing costs more favorable for financing investments and FDIs. These measures, combined with potential monetary easing and fiscal expansion, could act as growth drivers for the economy.

A 25-basis-point cut in the BSP's key rates is anticipated by February, as inflation remains under control.