In a bold move to revitalize the Philippine economy, Senator Francis Escudero has urged the national government to aggressively promote the newly approved 99-year land lease terms under Republic Act (RA) No. 12252. He emphasized that this reform should be positioned as a long-term anchor for job creation, capital formation, and overall economic development, especially as the country faces economic challenges.
Economic Slowdown Highlights Need for Action
The Philippine economy expanded by 4.4 percent in 2025, falling short of the government's target range of 5.5 percent to 6.5 percent and slowing from the 5.5 percent growth recorded in 2024. Escudero pointed out that this weaker output underscores the urgent need to shore up investor confidence and accelerate structural reforms to sustain economic expansion. "The law is already in place. What we need now is aggressive promotion and clear messaging to investors that the Philippines is ready for long-term partnerships," he stated.
Declining Investment Inflows and Labor Market Pressures
Latest data revealed that foreign direct investment net inflows declined to approximately US$7.1 billion from January to November 2025, down from $9.08 billion in the same period a year earlier. This contraction, driven largely by weaker intercompany borrowings and cautious global sentiment, highlights the urgency of competing more aggressively for regional capital. Escudero warned that without stronger investment inflows, particularly in sectors requiring long-term capital, the country risks prolonged underemployment and missed opportunities to absorb its growing young workforce.
The labor market remains under pressure, with the unemployment rate steady at 4.4 percent in December 2025, equivalent to about 2.26 million jobless Filipinos. Youth unemployment continues to hover in double digits, pointing to structural gaps in job generation that need to be addressed through sustained investment.
Key Sectors and Agencies to Benefit
RA 12252 amends the Republic Act No. 7652, or the Investor's Lease Act, extending land lease terms for foreign investors from 50 years to 99 years. Escudero, who authored the measure, described it as a structural reform that provides certainty for projects with long gestation periods. He identified sectors such as economic zones, tourism, renewable energy, and agribusiness as primary beneficiaries, as these industries typically require heavy upfront capital and long investment horizons.
Escudero cited the Philippine Economic Zone Authority and the Subic Bay Metropolitan Authority as key agencies in marketing ecozones and investment hubs as long-term destinations for capital and innovation. In 2025, the Philippine Economic Zone Authority approved P260 billion in investments, while the Subic Bay Metropolitan Authority continues to attract logistics, manufacturing, and tourism projects that require long-gestation funding.
Long-Term Vision Amid Economic Headwinds
"In times of slowdown, we must think in centuries, not quarters," Escudero asserted. "RA 12252 ensures that those who invest here will stay for generations, creating stability that outlasts economic headwinds." He added that structural reforms should not stall during periods of softer growth. "We cannot pause structural change because of short-term numbers. On the contrary, we must push harder so that the next cycle of growth is stronger and more resilient," he concluded.
