Full Breakdown
Philippines Enacts Landmark Law to Attract Foreign Investments
9/10/2025, 8:15:15 AM
Introduction of Republic Act 12252
On September 3, 2025, President Ferdinand R. Marcos Jr. signed Republic Act 12252, a significant amendment to the Investors’ Lease Act, which now allows foreign investors to lease private land in the Philippines for up to 99 years. This reform replaces the previous limit of 50 years, extendable for an additional 25 years. The new law aims to enhance the investment climate in the Philippines, particularly in sectors such as agriculture, industry, and tourism.
Implications for Foreign Direct Investment
The passage of RA 12252 is expected to unlock substantial foreign direct investments (FDIs) into the Philippines. Dr. Joseph Timothy Rivera, Chairman of the Association of Filipino Real Estate Executives in Qatar (AFREEQ), described the law as a “historic milestone” that will significantly boost investments from Qatar and other countries. The extended lease terms provide foreign investors, including sovereign wealth funds, a secure alternative to direct land ownership, fostering confidence in long-term investments.
Joey Bondoc, Director for Research at Colliers Philippines, noted that the new law positions the Philippines to compete more effectively with regional counterparts like Vietnam, Thailand, and Indonesia. He emphasized that this legislative change could lead to billions of pesos in investments across various sectors, including manufacturing, tourism, and industrial estates. The law is anticipated to stimulate growth in resilient sectors of the Philippine property market, particularly in areas outside Metro Manila.
Economic Opportunities and Job Creation
The amended Investors’ Lease Act is projected to create numerous employment opportunities and bolster economic growth. Special Assistant to the President for Investment and Economic Affairs, Frederick Go, stated that the law is a catalyst for agriculture, industrialization, and technology transfer. He highlighted that the Philippines has been uncompetitive compared to regional peers due to short-term land leases and ownership restrictions, and this law aims to rectify that.
The law also stipulates that only investors with approved and registered investments under various acts, including the Foreign Investments Act and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, are eligible for the longer lease terms. This requirement is designed to ensure that investments align with national economic goals.
Criticism and Opposition
While the law has garnered praise, some critics argue that the extended lease terms may not fully address underlying issues in the Philippine investment landscape, such as bureaucratic inefficiencies and infrastructure challenges. Concerns have been raised about whether the law will translate into immediate benefits for local communities and the economy at large.
Verbatim Quotes
- “RA 12252 is a catalyst for long-term prosperity for both nations,” Dr Rivera concluded.” — Dr. Joseph Timothy Rivera, Chairman, AFREEQ
- “This law opens doors for sustainable, long-term investments and affirms that the Philippines is ready to compete globally,” he said in a statement.” — Frederick Go, Special Assistant to the President for Investment and Economic Affairs
Conclusion
Republic Act 12252 represents a pivotal shift in the Philippines' approach to foreign investment, aiming to attract significant capital inflows and stimulate economic growth. As the country positions itself as a competitive destination for global investors, the long-term impacts of this law will be closely monitored in the coming years.