MANILA — Foreign direct investments (FDI) in the Philippines posted net inflows of USD611 million in March this year, according to data released by the Bangko Sentral ng Pilipinas (BSP).

The March figure was higher than the USD485 million recorded in the same month last year but 4.2 percent lower than the USD638 million registered in February 2026.

For the first quarter of the year, FDI net inflows totaled USD1.7 billion.

FDI refers to investments made by a non-resident direct investor in a resident enterprise in which the investor holds at least a 10-percent equity stake, as well as investments made by a non-resident subsidiary or associate in its resident direct investor. These investments may come in the form of equity capital, reinvested earnings, or borrowings.

“From January to March 2026, foreign equity and reinvested earnings remained broadly steady, indicating continued investors’ confidence in the country,” the BSP said.

Equity capital placements during the period came mainly from Japan, the United States, and Singapore, and were largely directed toward manufacturing, financial and insurance, and real estate sectors.

“The softer FDI numbers in March and in the first quarter of the year suggest that investors have become more cautious amid global uncertainty, rather than signaling a sharp deterioration in sentiment toward the Philippines,” said Robert Dan Roces, group economist at SM Investments Corp.

He added that inflows may improve if financing conditions become more favorable, though he noted that competition for investments remains strong, making policy stability, execution, and infrastructure delivery crucial.

Rizal Commercial Banking Corporation chief economist Michael Ricafort said catch-up government spending and improved governance standards could help boost investor sentiment.

Ricafort also said new foreign investment commitments from Japan are expected to support FDI inflows in the coming months.