Manila: An economist partly traced the strong foreign direct investments (FDI) inflows in July 2025 to the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. The law, signed on November 11, 2024, aims to encourage investors to have domestic operations in the Philippines by providing several incentives, such as lower corporate income tax for specific activities, and reduced fees and charges imposed by local governments.

According to Philippines News Agency, data released by the Bangko Sentral ng Pilipinas (BSP) on Friday showed that net FDIs reached USD1.268 billion, among the highest since the pandemic, as reported by Rizal Commercial Banking Corporation chief economist Michael Ricafort. Although the latest monthly figure is 7.5 percent lower than the previous year's USD1.37 billion, it significantly surpasses the USD376 million recorded last June.

The BSP stated that 89 percent of the FDIs in July came from Japan, primarily directed towards wholesale and retail trade. In the first seven months of this year, net FDIs decreased by 20 percent to USD4.7 billion, down from the previous year's USD5.9 billion.

Ricafort, in a report, expressed that the net inflow in July 'is considered decent' as it exceeds USD1 billion. He added that this is 'still an encouraging signal as a proxy for international investor confidence in the Philippines and a bright spot for the Philippine economy in terms of creating more jobs and other business/economic opportunities in the local economy.'

Ricafort further noted that positive demographics, such as a large working-age population and strong domestic growth in the region, are advantageous for the Philippines. He mentioned that 'CREATE MORE made it more appealing for FDIs to locate into the country, narrowing the gap on FDI incentives with neighboring ASEAN countries and attracting more FDIs.'