12/06/2026
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Even as the country reeled from the shock of the Middle East war, foreign investments continued to pour in in March, indicating steady investor confidence in how the Marcos administration addressed the adverse impact of the jump in oil prices.
The Bangko Sentral ng Pilipinas (BSP) reported that foreign direct investments (FDI) during the first month of the oil shock reached $611 million, eclipsing the $485 million in March 2025 by 26.1%.
The BSP said it was the first time since December last year that foreign investments posted a year-on-year growth.
Leading investors in March came from the US, Japan, and Singapore, who put new capital mostly in manufacturing, finance, insurance, and real estate.
The $611 million FDI in March was only slightly lower than the $638 million in February before the United States and Israel attacked Iran on February 28.
The war sent oil and fuel prices soaring, disrupting trade and logistics worldwide and triggering inflation in most countries.
President Ferdinand R. Marcos Jr. responded with a whole-of-government strategy by putting all government interventions and programs under the Unified Package for Livelihoods, Industry, Food and Transport framework.
The Philippine governmentโs approach was commended by the Asian Development Bank, citing the positive effect of policies that โallow price signals to work, use fiscal space prudently, and build longer-term resilience.โ
โTargeting fiscal support to vulnerable groups and lower income households, as much as possible on a temporary basis, does not blur price signals and helps preserve fiscal space,โ the ADB said in a report in April.
It cited as examples targeted cash transfers, subsidies directed toward public transport, or energy bill rebates that are not linked to the volume of consumptionโmeasures that the government implemented as part of UPLIFT.
Even as economic volatility continues to prevail worldwide, foreign investments can help the Philippines navigate through the challenges, according to analysts.
Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., in a news report by Business Mirror, said FDI can โdefinitely help the economyโ by bringing in capital, jobs, and productivity gains, which are crucial in mitigating the impact of inflation, especially with external shocks like the Middle East conflict.
โLooking ahead, I expect FDI to remain soft but resilient. In a high-inflation, slower-growth environment, investors tend to be more disciplined. The opportunity for the Philippines is clear: if we can deliver policy consistency, ease of doing business, and stable macro conditions, we can turn this period of caution into a platform for stronger, more sustained inflows,โ Business Mirror quoted Ravelas.

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