New 99-year land lease law can make PH a competitive investment hub — Senator Escudero

Senator Francis “Chiz” Escudero urged the national government to promote the newly enacted 99-year land lease law as it could help the Philippines become a  cornerstone for long-term investment, employment generation, and economic development.

“The law (Republic Act No. 12252) 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,” said Escudero, principal author of the law.

In a news release, Escudero cited that the Philippine economy grew by only 4.4 percent in 2025, falling short of the government’s 5.5 to 6.5 percent growth target and slowing from the 5.5 percent expansion recorded in 2024.

He said the weaker performance highlights the urgency of restoring investor confidence and pushing forward structural reforms.

He noted that foreign direct investment (FDI) inflows continue to weaken, underscoring the need to attract more long-term capital. Data show that net FDI inflows reached only about $7.1 billion from January to November 2025, down sharply from the $9.08 billion recorded in the same period in 2024.

According to Escudero, the decline—driven by softer intercompany borrowings and a more cautious global investment climate—signals that the Philippines must act decisively to remain competitive in the region and rebuild investor confidence.

He also flagged continuing vulnerabilities in the labor market, citing the 4.4 percent unemployment rate in December 2025, which translates to around 2.26 million Filipinos without jobs.

Youth unemployment remains in double digits, he added, reflecting long-standing structural challenges in employment creation.

Escudero warned that without stronger investment inflows, particularly in capital-intensive sectors, the country risks prolonging underemployment and missing opportunities to absorb its expanding young workforce.

He said reforms such as RA 12252 could help reverse these trends by encouraging long-term investments that generate stable, high-quality jobs.

The Bicolano senator identified agencies such as the Philippine Economic Zone Authority (PEZA) and the Subic Bay Metropolitan Authority (SBMA) as critical partners in promoting ecozones and tourism areas as long-term investment destinations.

PEZA approved P260 billion worth of investments in 2025, while SBMA continues to draw logistics, manufacturing, and tourism ventures requiring long-gestation capital.

“In times of slowdown, we must think in centuries, not quarters. RA 12252 ensures that those who invest here will stay for generations, creating stability that outlasts economic headwinds,” Escudero said.

He explained that RA 12252, which amends the Investor’s Lease Act or RA 7652, extends allowable land leases for foreign investors from 50 years to 99 years, a move he described as a major structural reform to support long-term projects and cushion the impact of economic deceleration.

Escudero said industries such as ecozones, tourism, renewable energy, and agribusiness stand to benefit the most, noting that these sectors require substantial capital and lengthy development periods.

“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 said.

-Paraluman News