The Philippines has reached upper-middle-income status but remains behind Thailand, Malaysia, Indonesia and Vietnam in global investor rankings.
The Philippines ranked 18th out of 25 emerging markets in Kearney's 2026 Foreign Direct Investment Confidence Index, down from 16th place the previous year. Thailand placed sixth, Malaysia seventh, Indonesia 13th and Vietnam 16th.
Kearney Philippines country head Marco de la Rosa and Southeast Asia managing partner Varun Arora noted that the country's new income classification gives it a stronger story for investors. They said the upgrade has not yet translated into higher confidence levels.
The World Bank reclassified the Philippines this year after gross national income per capita reached $4,850. President Ferdinand Marcos Jr. highlighted the status during his July 14 to 16 visit to Singapore, describing the country as having solid macroeconomic fundamentals.
De la Rosa said global business leaders cited talent availability, natural resources and economic performance as top attractions. Investors rated the Philippines lowest in infrastructure and governance.
