Advertisement
The Philippines
This Week in AsiaEconomics

Why the Philippines is losing out in Southeast Asia’s investment boom

With Manila capturing just US$9 billion of the region’s US$244 billion capital influx last year, analysts urge reforms to close the FDI gap

3-MIN READ3-MIN
3
Listen
Fishermen paddle past a cargo ship unloading containers at the Manila international port in the Philippines in December 2025. Photo: AFP
Sam Beltran
The Philippines still lags behind its neighbours in attracting foreign direct investments (FDI) after its inflows remained stagnant in 2025, even as a financing influx swept the region.

This has cast the spotlight on a corruption scandal that has roiled the country and dented investor confidence to some extent, on top of long-standing systemic issues, analysts say.

Manila ranked sixth in Southeast Asia after capturing just US$9 billion of the US$244 billion capital boom last year, according to the UN Conference on Trade and Development’s 2026 World Investment Report.

Southeast Asia overtook East Asia as the largest recipient subregion in “Developing Asia”, the report said, after total FDI inflows grew by 10 per cent.

Investment in Southeast Asia centred on high-value sectors such as semiconductors, electronics, communications and renewable energy. The region’s total inflows grew to US$244.17 billion in 2025 from US$222.50 billion the previous year.

Singapore continued to receive the largest amount of FDI at US$150.90 billion, increasing its inflow by 11 per cent in 2024, while Indonesia retained its position as the second-largest recipient in the region at US$21.44 billion, despite a 13 per cent drop from the previous year.
Advertisement
Select Voice
Select Speed
1.00x