As regards the sectors of the economy that attracted FDIs during the three Administrations, the Noynoy Aquino Administration brought in the most number of enterprises in the service industry, with manufacturing recovering slowly by the end of the period. Financial and insurance activities likewise recorded large inflows, especially in 2014 as confidence in the capital market improved and the banking sector was liberalized. A drop of the interest rate to a low of 4 % encouraged more investments in general. A marked increase in real estate investments reflected the continuing growth of the BPO-IT industry and increased urban development. The FDI inflow during this Administration had a distinct bias in favor of services and finance rather than infrastructure. Manufacturing moment was real but not yet entrenched.

            FDI during the Duterte Administration was highly volatile and project driven with sharp swings that reflected infrastructure bets, regulatory uncertainty and negative effects of the COVID-19 epidemic. Electricity and energy in general marked a structural break with P1.39 trillion reflecting power-related investments aligned with the Administration’s infrastructure program (Build, Build, Build).  Inflows into transport and storage increased but remained modest. Information and communication spiked in 2019 driven by telecom and digital infrastructure investments.

            At the beginning of the BBM Administration, FDI was showing a recovery and some rebalancing with manufacturing emerging as the strongest and most consistent driver, rising steadily and reaching P 1.4 trillion in 2024—the clearest signal of a renewed interest in industry. Real estate rebounded strongly in 2022 -2023, supporting construction and services as the economy opened after months of lockdown. Transportation and storage inflows stabilized, suggesting a recovery in logistics and mobility. Health and social work initiatives surged in 2023, reflecting post-pandemic restructuring and private health care investment.  

            To its credit, the BBM Administration built on the strong foundations set during the previous two Administrations in further strengthening the two saving sectors of the Philippine economy, OFW remittances and the IT-BPM sector. Even amid global volatility, OFW remittances remained a critical stabilizing force for the Philippine economy. In 2024, remittances reached U.S. $ 38.2 billion. The persistence of remittance inflows—particularly during periods of elevated domestic inflation—suggests a countercyclical role, as overseas workers support household consumption and cushion real income pressures at home.

            Alongside remittances, the IT-BPM sector has served as a second major external earnings pillar. Prior to the pandemic, the industry grew at a steady 3 – 6 % annually. Post-pandemic growth accelerated to 9 to 10 %, driven by digital demand for e-commerce, health care and financial services. By 2023, the second year in the term of President BBM, growth accelerated to 9 – 10%, driven by digital demand from e-commerce, health care and financial services. By 2023, industry revenues reached US $ 35.5 billion, generating 130,000 new jobs and bringing employment to 1.7 million. In 2024, industry revenues reached $38 billion. Before the end of the BBM Administration, earnings from the IT-BPO sector will surpass the $40 billion mark

Despite the seemingly good start, the BBM Administration has done poorly in attracting FDIs. While ASEAN neighbors like Vietnam, Indonesia and Malaysia are attracting FDI flows of $15 to $30 billion annually, the Philippines’ figures remain below $10 billion, suffering a disastrous drop of 50 % in 2025 as result of the flood control corruption scandal. The Philippines can foster more FDIs in the immediate term by addressing governance lapses. The recent flood control scandal demonstrated that governance issues are significant in foreign investors’ willingness to put in equity capital in the country’s businesses. A stable and effective rule of law can rally investor appetite and attract more of the investments already pouring into the ASEAN region. On this front, the BBM Administration should devote the rest of its term into strengthening the rule of law and thus fostering transformative economic growth.

While a good number of improvements in the Philippine investment climate have materialized (e.g. greater openness to foreign investments, higher investments in infrastructures, greater emphasis on technical skills in human resource development), the country remains a laggard in investment-led growth. Compared to its peers, especially in the ASEAN, the Philippines has been registering a low of 20 to 23 % investment-to-GDP ratio, much lower than the 25 to 30 % average in East Asia.  This has led to lack luster economic growth (from its potential of 8 to 10 % growth) in the post-pandemic period, resulting to a slow offtake of higher value-added industries compared to its neighbors. As the experience in 2025 showed, there must be greater political will to improve the quality of governance. To be continued.