Approved foreign investment in the Philippines surged in the final three months of last year, marking the strongest quarterly performance in over a year, even as the full-year total sank to a three-year low.

According to data released by the Philippine Statistics Authority on Thursday, Feb. 12, foreign investment pledges jumped 79.1 percent to ₱103.33 billion in the October to December 2025 from ₱57.70 billion a year earlier.

While the end-of-year rebound provided a late boost to the economy, the annual tally of ₱272.38 billion represents the weakest showing since 2022 and a sharp retreat from the ₱546.19 billion recorded in 2024.

National Statistician Claire Dennis S. Mapa confirmed in an interview Friday, Feb. 13, that the fourth-quarter figure was the highest since the ₱143.74 billion seen in the third quarter of 2024. However, he noted that the year-end momentum was not enough to offset a broader slowdown in approvals that persisted through much of 2025.

The Netherlands emerged as the top source of investment during the quarter, committing ₱33.05 billion, or roughly 32 percent of the total. Japan and Singapore followed with ₱17.88 billion and ₱17.66 billion, respectively.

The energy sector remained the primary draw for offshore capital, with the electricity, gas, steam, and air conditioning industry attracting ₱49.41 billion in pledges. Manufacturing followed with ₱34.68 billion, while information and communication projects accounted for ₱4.76 billion.

Geographically, the industrial hub of CALABARZON—comprising Cavite, Laguna, Batangas, Rizal, and Quezon—secured the lion’s share of pledges at ₱46.85 billion. Central Luzon and the Negros Island Region followed in attracting the remaining significant portions of foreign capital.

Total approved investments, which include commitments from both domestic and foreign sources, reached ₱1.10 trillion in the fourth quarter. This represents a 193.8 percent increase from the ₱0.37 trillion seen in the same period of 2024, largely driven by Filipino nationals who contributed ₱0.99 trillion to the total. Despite the capital influx, projected job creation from these projects fell 13.6% year-on-year to 48,227.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., attributed the full-year volatility to a “wait-and-see” attitude among investors.

He also cited domestic political noise regarding infrastructure projects and external headwinds, including trade tensions and higher United States (US) tariffs, as factors that weighed on sentiment since September.

“The slight decline in approved investments in 2025 was partly due to the political noise, especially since September 2025, that led to a wait-and-see attitude for some investors until the dust settles,” Ricafort said.

However, he added that in the coming months, improved governance and reforms could boost investor confidence, potentially driving a pickup in investments and foreign direct inflows.

Ricafort also highlighted the Philippines’ large and young population, with over 114 million people and a majority already of working age, as a key factor attracting multinational companies.

“Approved investments could improve in 2026 if anti-corruption measures and other reforms related to further improving governance standards are taken seriously, as these are also the basis for the catch up government spending to make up for the soft underspending in the latter part of 2025 due to the political noises largely attributed to the anomalous flood control projects,” Ricafort said.