The country’s largest business group warned that investment sentiment will continue to deteriorate unless the government moves to hold high-level personalities implicated in the multibillion-peso corruption scandal accountable.

Philippine Chamber of Commerce and Industry (PCCI) president Ferdinand Ferrer said investors are closely monitoring the development of the corruption mess over flood control projects, which continues to unravel today.

Ferrer noted that while local investors tend to be more tolerant of delays in government action, he stressed that the patience of foreign investors is now razor-thin.

“They are looking at our country, what the government is doing, [and] what the private sector is doing to assist the government. So all these come into play [in investments],” he said in a television interview on Tuesday, Jan. 13.

While there are external factors at play, analysts view the corruption scandal as one of the major reasons behind the decline in foreign direct investment (FDI) last year.

The latest data from the Bangko Sentral ng Pilipinas (BSP) showed that FDI inflows fell 24 percent to $6.18 billion by the end of October 2025, compared to $8.18 billion recorded during the same period in 2024.

“If we can really put those involved in this scandal to jail, then Filipinos can see the efficiency of our judicial system, not only our citizens but also the international community. That could give an uptick,” said Ferrer.

“If it doesn’t get [to that], if the process is slow, the credibility and the confidence of investors, both local and international, will keep on declining,” he emphasized.

Investors have been questioning the government’s handling of the flood control scandal, as the only “big player” arrested so far is controversial contractor Sarah Discaya.

It was Malacañang that earlier promised high-level personalities, including former congressman Zaldy Co and others involved in the scandal, would be spending their Christmas behind bars.

However, weeks later, there have been no major arrests, and politicians implicated in the controversy continue to enjoy their freedom.

Against this backdrop, PCCI is hoping that the government will introduce more “corrective actions” for this year’s ₱6.793-trillion national budget to prevent further chances of public funds being misused.

“It’s not enough, allocating money to projects. What we are going after is, is the funds correct or is the cost correct for certain projects in the budget? Costing is the most important,” said Ferrer.

“If we do not have corrective actions or procedural changes in allocations on how projects are costed, then I believe [corruption] will continue to repeat,” he added.

Ferrer stressed that if the corruption scandal remains unaddressed, the country could miss out on potential investments stemming from expanded market access under the free trade agreements (FTAs) the government is pursuing.

He added that the country also risks losing the opportunity to become an integral player in the global value chains of several critical products because of this.

“The Philippines is within the radar of where companies will be investing in the region. So I think it’s an opportunity for the Philippines to really go out there and take these opportunities,” said Ferrer.