SENATOR Francis “Chiz” Escudero is urging the national government to aggressively market the new 99‑year lease terms under Republic Act No. 12252, saying the measure must be positioned as a long‑term anchor for jobs, capital, and development.
Escudero issued the call as the Philippine economy expanded 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 posted in 2024. He warned that the country must compensate for weaker growth by strengthening investor confidence and accelerating structural reforms.
“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 said.
The veteran legislator noted that foreign direct investment inflows continue to soften, underscoring the urgency of attracting long‑term capital. Latest data show that FDI net inflows reached only around $7.1 billion from January to November 2025, a significant decline from the $9.08 billion recorded in the same period in 2024.
He said this contraction, driven by weaker intercompany borrowings and more cautious global sentiment, signals that the Philippines must move decisively to restore investor confidence and compete more aggressively for capital in the region.
The senator also added that the labor market remains fragile, with the unemployment rate holding at 4.4 percent in December 2025, equivalent to approximately 2.26 million jobless Filipinos. Youth unemployment also remains in double digits, reflecting persistent structural challenges in job creation.
Escudero stressed that without stronger investment inflows, particularly in sectors requiring long‑term capital, the country risks prolonging underemployment and missing opportunities to absorb its growing young workforce.
He emphasized that reforms like RA 12252 can help reverse these trends by encouraging investors to commit to projects that generate stable, high‑quality jobs over decades.
The Bicolano senator pointed to agencies such as the Philippine Economic Zone Authority (PEZA) and the Subic Bay Metropolitan Authority (SBMA) as key drivers in marketing ecozones and tourism hubs as long‑term destinations for capital, jobs, and innovation.
PEZA alone approved P260 billion in investments in 2025, while SBMA continues to attract logistics, manufacturing, and tourism projects that require 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,” he added.
Escudero emphasized that RA 12252, which amends RA 7652 or the Investor’s Lease Act, extends land leases for foreign investors from 50 years to 99 years—a step he described as a structural reform that can help cushion the impact of weaker growth and provide certainty for long‑term projects.
He noted that sectors such as ecozones, tourism, renewable energy, and agribusiness stand to benefit most. These industries require heavy capital and long gestation periods, making the extended lease terms a decisive factor in investment decisions.
Escudero, the law’s principal author, added that reforms must continue even when growth slows. “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 explained.
