As the tempo of foreign and local investments registered in the country remains sluggish, the Department of Trade and Industry (DTI), along with its attached investment promotion agencies, is gearing up to meet in the coming days to either recalibrate or maintain its P1.7 trillion investment target for this year.

Based on the records of the Board of Investments (BoI), approved investments from January to May 2025 amounted to only P329.5225 billion. When broken down, P61.51847 billion were foreign investments, while P268.004 billion were domestic investments.

For the Philippine Economic Zone Authority (PEZA) figures, it reported that 66 new and expansion projects worth P58.947 billion were approved in the first quarter of the year. This marked a 294.26 percent increase compared to the P14.951 billion approved in the first quarter of 2024.

“We are still going to meet regarding that (recalibration). But we will push for more investments to come in, using the Road Show for CREATE MORE, that’s one of our focuses. The meeting will focus to review and to (really) study how we can go higher,” Trade Secretary Cristina Roque told reporters at the sidelines of the ceremonial signing of the Joint Memorandum Circular (JMC) for Investments Facilitation Network (INFA-Net) at the Makati Diamond Residences, Makati City on Monday.

“But we are hoping to at least secure the P1.9 trillion approved investments we made last year. We just have to make sure that we can also hit that, so we will meet this week or next week, along with the heads of the IPAs (investment promotion agencies),” Roque added.

Challenging to hit

On the other hand, Special Assistant to the President for Investment and Economic Affairs, Secretary Frederick Go, said that hitting or surpassing the P1.9 trillion investments made last year remains a challenge. That total was 30 percent higher than the investments recorded in 2023.

“That number is the new statistic that we have to beat, and it’s a very challenging number. So, we have to work doubly hard, which is why programs like the INFA-Net are important to us,” Go said in a chance interview.

Asked what the chances are for the government to hit or surpass its investment targets this year, Secretary Go said he doesn’t know.

“Of course, every year we try to beat our record. But with every performance, it becomes more difficult. It’s a very different situation now because of the U.S. tariffs. But right now, there’s no discussion of such a (second round) on the table,” Go said.

Tariff war is a big factor

Meanwhile, Rizal Commercial Banking Corporation’s chief economist Michael Ricafort said the slow entry of investments is partly due to the 17 percent tariff imposed by U.S. President Donald Trump on the Philippines, the ASEAN region, and other nations.

“Largely due to wait-and-see stance by some exporters and investors on their production, capacity, and inventories due to Trump’s reciprocal tariffs/Liberation Day on 2 April, as Trump’s higher import tariffs/reciprocal tariffs could slow demand for exports to the U.S., slow down investments (new and expansion projects), global trade, employment, and overall world GDP (gross domestic product), and economic/GDP growth that could, in turn, indirectly slow down local economic/GDP growth,” Ricafort told the DAILY TRIBUNE in a Viber message.

Furthermore, he said the protectionist policies of Trump also encourage U.S. and global investors to invest in the U.S. amid higher U.S. import tariffs. This, in turn, reduces investment and foreign direct investments in other countries.

A total of 35 member agencies of INFA-Net signed a landmark Joint Memorandum Circular on Monday, signaling a strengthened commitment to harmonize investment facilitation strategies and improve support for investors in the Philippines.

Secretary Roque said the signing of the support to JMC reflects their shared commitment to break down barriers, reduce red tape, and send a strong message to the world that the Philippines is open for business.

The newly signed JMC aims to bolster inter-agency coordination, step up investor facilitation, and streamline regulatory processes to boost local and foreign investments in the country.