PH Investment Pledges Hit P1.92 Trillion: A Resilience Story Amid "Back-Loaded" 2025 Growth
The Philippine investment landscape in 2025 was a tale of cautious starts and explosive finishes. According to the latest Philippine Statistics Authority (PSA) data released in February 2026, total investment commitments certified by the country’s Investment Promotion Agencies (IPAs) dipped slightly by 2.0% to P1.92 trillion, down from P1.96 trillion in 2024.
At the GME Academy, we view this "minor retreat" as a strategic reset. While the headline number slipped, the fourth quarter of 2025 saw a staggering 193.8% surge in approvals, signaling that investors were "back-loading" their commitments as domestic policy clarity improved toward year-end.
1. The Q4 Surge: Local Investors Step Up
The final three months of 2025 were a powerhouse for the economy, with combined domestic and foreign approvals hitting P1.1 trillion.
Filipino Dominance: Domestic investors led the charge, accounting for 90.6% (P990 billion) of the Q4 total.
Foreign Interest Gains: While total annual foreign pledges dropped by 50% year-on-year, the fourth quarter saw a 79.1% jump in foreign commitments to P103.33 billion.
The "Nether-Japan-Sing" Trio: The Netherlands emerged as the top foreign source in Q4 (P33.05 billion), followed by Japan and Singapore.
2. Sector Spotlight: Energy is King
For the second consecutive year, the Philippines’ "Green Lane" initiative and renewable energy liberalization have made Electricity and Gas the most attractive sector.
51.6% of All Pledges: Energy projects accounted for P991.61 billion of the 2025 total. This is a direct result of the 100% foreign ownership allowance in renewable energy.
Real Estate & Transport: These sectors followed as the second and third most popular destinations, with P327.45 billion and P230.71 billion respectively.
Manufacturing Stabilizes: Despite global trade tensions, manufacturing secured P215.38 billion, with a significant portion (33.6% of foreign Q4 pledges) flowing into Calabarzon.
3. Top Agencies: PEZA Hits a 10-Year High
While the Board of Investments (BOI) remained the heavy lifter, the Philippine Economic Zone Authority (PEZA) stole the spotlight with a record-breaking performance.
BOI Under Pressure: The BOI approved P1.56 trillion, accounting for 81% of total pledges. However, it missed its P1.75-trillion target by 10.8% due to "big-ticket" projects still undergoing evaluation at year-end.
PEZA’s Milestone: PEZA hit P260.89 billion, its highest level since 2016. PEZA Director General Tereso Panga attributed this 21.9% growth to the "continued trust and confidence of ecozone locators."
Regional Hubs: Calabarzon remained the preferred destination for foreign capital, followed by Central Luzon and the newly established Negros Island Region.
The GME Academy Analysis: "Watch the Job-Multiplier Effect"
At Global Markets Eruditio, we are cautious about one specific metric: Job Creation.
Trader's Takeaway for February 2026:
Job Gap: Despite the P1.1 trillion Q4 surge, expected jobs fell by 13.6% to 48,227. This suggests that 2025 investments are becoming more capital-intensive (automation/energy) rather than labor-intensive (garments/assembly).
PHP Outlook: The massive P1.92 trillion in pledges provides a "buffer" for the Philippine Peso (PHP). While FDI inflows (actual money) were volatile in 2025, the backlog of "commitments" creates a medium-term floor for the currency as projects begin construction in 2026.
Sector Play: We are maintaining a Bullish outlook on PH Energy and Infrastructure stocks, as the transition from "pledge" to "groundbreaking" is expected to accelerate in H1 2026.
Join our FREE Macro Workshop at Global Markets Eruditio!
Is the Philippine Energy Boom sustainable? We’ll break down the 2025 PSA IPA Data and show you which sectors are poised to lead the PSEi in 2026
