A leading economist has directly linked a significant boost in Philippines Foreign Direct Investment (FDI) to the recently enacted CREATE MORE Act. This law is designed to attract global businesses by enhancing the country’s investment incentives.
What is the CREATE MORE Act?
Signed into law in November 2024, the CREATE MORE Act aims to encourage foreign companies to establish operations in the Philippines. Specifically, it provides powerful incentives, including:
reduced corporate income taxes for key activities and lower fees and charges imposed by local governments.
According to data from the Bangko Sentral ng Pilipinas (BSP), net FDI inflows reached $1.268 billion in July 2025. Economist Michael Ricafort of RCBC noted this is one of the highest monthly figures since the pandemic.
For context, while this was 7.5% lower than the same month in 2024, it represented a massive 237% increase compared to June 2025’s $376 million. These sharp monthly rebound highlights a positive trend. Furthermore, the BSP reported that 89% of these July inflows originated from Japan and were directed into the wholesale and retail trade sectors.
Ricafort described the July inflow as “decent,” especially since it remained above the $1 billion mark. He emphasized that this is a strong proxy for international investor confidence in the Philippines.
“It is still an encouraging signal… and a bright spot for the Philippine economy in terms of creating more jobs and other business opportunities,” he stated in a report.
Why is the Philippines Attracting Investment?
In addition to the new law, Ricafort pointed to other fundamental strengths that make the Philippines appealing to foreign investors like positive demographics where there is a large, young population of working-age citizens and strong domestic growth which is one of the most robust economies in the ASEAN region.
The CREATE MORE Act is a game-changer. As a result, the Philippines is now more appealing for FDI and is successfully narrowing the competitive gap with its regional neighbors.
