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FOREIGN INVESTORS will likely remain cautious about the Philippines until reforms are put in place to ensure regulatory certainty and reduced operating costs, theFOREIGN INVESTORS will likely remain cautious about the Philippines until reforms are put in place to ensure regulatory certainty and reduced operating costs, the

Nordic chamber sees investor caution until reforms take hold

Author: Bworldonline

Source: Bworldonline

2026/02/22 19:54

2 min read

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FOREIGN INVESTORS will likely remain cautious about the Philippines until reforms are put in place to ensure regulatory certainty and reduced operating costs, the Nordic Chamber of Commerce of the Philippines, Inc. said.

The caution will continue “until investors see actual government reforms,” NordCham Philippines Senior Research Analyst Vanna Pesa said in a briefing late Thursday.

She noted that even before the infrastructure corruption scandal in the third quarter of 2025, foreign direct investment (FDI) had been volatile.

FDI inflows declined to a six-month low of 17.8% to $376 million in June, shortly before the corruption scandal erupted in July.

Ms. Pesa attributed this to uncertain laws and regulations, as well as high operating and business costs.

Looking ahead, FDI inflows will likely come from Asia “as the Philippines forges more economic and defense agreements… especially with Japan and South Korea,” Ms. Pesa said.

She noted that from January to November 2025, 95.1% of FDI inflows came from Asia, including Japan, Singapore, South Korea, Taiwan, and Malaysia.

Ms. Pesa also noted that the Philippine economy may still be feeling the impact of the corruption scandal this year.

“Spillover effects of the whole infrastructure corruption scandal may still manifest within the first half of the year, and we are also on the lookout on other risks to growth, like geopolitical uncertainties,” she said.

Philippine economic growth slowed to a post-pandemic low of 4.4% in 2025, amid adverse weather conditions and the flood control corruption scandal that weighed on government spending and investor confidence.

“We expect that 2026 growth will be driven by domestic consumption… supported by within-target inflation, the government’s optimism in labor market conditions, and the flow of remittances,” Ms. Pesa said. — Beatriz Marie D. Cruz

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