Foreign direct investments (FDI) in the Philippines have decreased for the second consecutive month in March, reaching the lowest level in three months, according to data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday.

The BSP reported that FDI net inflows amounted to $498 million in March, a drop from $533 million in February and 27.8% lower than the $689 million recorded in the same month last year.

The decline was attributed to reduced net inflows across all major FDI components, with nonresidents' net investments in debt instruments decreasing by 31.6% to $329 million, and investments in equity capital and reinvestment of earnings down by 27.4% to $102 million.

Equity capital placements in March were mainly directed towards real estate, manufacturing, financial and insurance, as well as administrative and support services industries.

Among the countries, Singapore emerged as the largest source with 25%, followed by Japan at 24%, the United States at 20%, South Korea at 9%, and Malaysia at 5%.

FDI net inflows for the year so far totaled $1.761 billion, a decrease from the $2.990 billion reported during the same period in 2024.

Japan was the primary source for the quarter, accounting for 42%, followed by the United States at 17%, Singapore at 14%, and Malaysia and South Korea both at 6% each.