Chiz urges strong promotion of 99-year land lease law to boost investments

Senator Francis “Chiz” Escudero is calling on the national government to aggressively promote the newly enacted 99-year land lease policy, saying it should serve as a cornerstone in positioning the Philippines as a competitive investment hub in the region.

Escudero said Republic Act No. 12252, which extends allowable land leases for foreign investors from 50 years to 99 years, must be marketed as a strong signal that the country is open to long-term partnerships, capital inflows, and job creation.

“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,” Escudero said.

His call comes as the Philippine economy grew by only 4.4 percent in 2025—below the government’s 5.5 to 6.5 percent target and slower than the 5.5 percent expansion recorded in 2024. He warned that amid softer growth, the country must double down on structural reforms to strengthen investor confidence.

Foreign direct investment (FDI) inflows have also slowed. Net FDI reached about $7.1 billion from January to November 2025, down from $9.08 billion during the same period in 2024. Escudero noted that weaker intercompany borrowings and cautious global sentiment contributed to the decline, highlighting the urgency of making the Philippines more competitive in attracting long-term capital.

The veteran senator also pointed to continuing labor market challenges. The unemployment rate stood at 4.4 percent in December 2025, equivalent to around 2.26 million Filipinos without jobs. Youth unemployment remains in double digits, reflecting structural gaps in job generation.

Without stronger investment inflows—particularly in capital-intensive sectors—the country risks prolonged underemployment and missed opportunities to absorb its growing young workforce, he said.

Escudero stressed that RA 12252, which amends the Investor’s Lease Act, provides certainty for investors undertaking projects that require heavy capital and long gestation periods. He cited ecozones, tourism, renewable energy, and agribusiness as among the sectors expected to benefit most from the extended lease terms.

He also identified key agencies such as the Philippine Economic Zone Authority and the Subic Bay Metropolitan Authority as vital in marketing ecozones and tourism hubs as stable, long-term investment destinations.

PEZA alone approved P260 billion worth of investments in 2025, while SBMA continues to attract projects in logistics, manufacturing, and tourism that require long-term capital commitments.

“In times of slowdown, we must think in centuries, not quarters,” Escudero said, emphasizing that reforms should continue even during periods of weaker 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 added.

As principal author of RA 12252, Escudero underscored that the measure is designed to anchor stability and encourage investors to commit to projects that generate sustainable, high-quality jobs for decades to come.