An economist partly attributed the strong foreign direct investments (FDI) inflows in July 2025 to the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

The law, signed on Nov. 11, 2024, aims to encourage investors to have domestic operations in the Philippines by providing them several incentives, such as lower corporate income tax for some activities, and lower fees and charges that will be imposed by local governments.

Data released by the Bangko Sentral ng Pilipinas (BSP) on October 10 showed net FDIs reached $1.268 billion, among the highest since the pandemic, according to Rizal Commercial Banking Corporation chief economist Michael Ricafort.

Although the latest monthly figure is 7.5 percent lower than the year-ago’s $1.37 billion, it is way higher than the $376 million last June.

The BSP said 89 percent of the FDIs last July came from Japan, and were placed in wholesale and retail trade.

In the first seven months this year, net FDIs went down 20 percent to $4.7 billion from the year-ago’s $5.9 billion.

Ricafort, in a report, said the net inflow last July “is considered decent” since it is above $1 billion.

“(It is) still an encouraging signal as a proxy for international investor confidence on the Philippines and still a bright spot for the Philippine economy in terms of creating more jobs and other business/economic opportunities in the local economy,” he said.

Ricafort said positive demographics, or having a large number of the population being in the working age and having one of the strongest domestic growth in the region, are pluses for the Philippines.

“CREATE MORE made it more appealing for FDIs to locate into the country and narrowing the gap on FDI incentives with neighboring ASEAN countries in attracting more FDIs,” he added. 

PNA PHOTO