President Marcos Signs Landmark Law to Boost Agriculture and Industry. Here’s What It Means

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Looking for good news about the Philippine economy? The new 99-year lease law is a massive step forward for jobs, growth, and investment.

A 99-Year Welcome Mat: The Philippines Just Rolled Out Its Boldest Investment Reform in a Generation

For any major global investor looking to build a factory, cultivate a sustainable forest, or create a world-class tourist destination, one of the first and most fundamental questions is, “How long can we stay?” For decades, the Philippines’ answer, while welcoming, was not as resounding as that of our regional neighbors. Today, that has changed. A new law has just been signed that replaces our old answer with a bold, confident, and globally competitive declaration: “Stay for a generation. Stay for nearly a century.”

On September 3, 2025, President Ferdinand R. Marcos Jr. signed into law Republic Act 12252, a landmark amendment to the Investors’ Lease Act. This is not a minor tweak; it is a fundamental overhaul of our country’s investment landscape. The new law extends the maximum lease term for foreign investors on private lands from a total of 75 years to a new, powerful term of up to 99 years.

This is one of the most significant economic policy reforms in recent history. It is a direct and powerful signal to the global community that the Philippines is not just open for business, but open for long-term, sustainable, and nation-building business. For entrepreneurs, landowners, and every Filipino eager for quality jobs and a more prosperous future, this law is a catalyst that will unlock a new wave of opportunity. 🇵🇭

From 75 to 99: Why This Change is a Game-Changer

The previous law, Republic Act 7652, passed in 1993, allowed foreign investors a 50-year lease, renewable for another 25 years—a total of 75 years. While significant, this often fell short of the long-term planning horizons required for massive, capital-intensive projects. The new 99-year term is a complete game-changer for several reasons.

It aligns the Philippines with the international standard for long-term leases, immediately putting us on a level playing field with regional investment hotspots like Vietnam and Malaysia. As Special Assistant to the President for Investment and Economic Affairs, Frederick Go stated, “We have been uncompetitive relative to regional peers for too long because of short-term land leases… This law opens doors for sustainable, long-term investments and affirms that the Philippines is ready to compete globally.”

A 99-year lease provides the security and stability for investors to undertake “legacy projects.” These are investments that require decades to recoup their initial costs and reach full profitability. Let’s look at what this means for key sectors:

  • Agriculture, Agro-forestry, and Ecological Conservation: This is perhaps the sector that will benefit the most. The old 75-year limit was a major deterrent to investing in high-value crops or trees (like fruit orchards, rubber, or timber) that can take 10-30 years to mature and have a productive lifespan of many decades more. The 99-year lease now makes large-scale, sustainable agriculture and reforestation projects financially viable, promising a renaissance for our rural and upland areas.
  • Industrial Estates, Factories, and Processing Plants: Building a state-of-the-art semiconductor factory or a massive industrial park requires billions of dollars in upfront investment. A 99-year lease provides the long-term operational certainty needed to justify such an enormous capital outlay and to foster the growth of an entire ecosystem of supplier industries around it.
  • Tourism: The development of world-class, integrated resorts and large-scale, master-planned eco-tourism destinations is now more attractive. Investors can plan for multiple phases of development over several decades, confident in their long-term tenure.

Smart and Strategic: The Law’s Built-in Safeguards

This new law is not a blanket giveaway. It is a smart, targeted policy designed to attract the right kind of investors. The 99-year lease is not available to just anyone. To qualify, a foreign investor must have an approved and registered investment under key national priority laws, such as:

  • The Foreign Investments Act
  • The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act
  • The CREATE More Act

This is a brilliant piece of policymaking. It turns the longer lease into a powerful incentive, rewarding only those legitimate, committed investors who align with our country’s development goals, create jobs, pay taxes, and contribute to our priority industries. Furthermore, the requirement that all lease contracts be registered with the local Registry of Deeds ensures transparency, legal clarity, and protects the rights of the Filipino landowners.

10 Key Benefits of the Amended Investors’ Lease Act

This single piece of legislation will create a cascade of positive effects across the economy.

  1. A Surge in Foreign Direct Investment (FDI): The new law directly addresses a major concern of foreign investors, making the Philippines a more attractive destination for long-term capital.
  2. Creation of Quality, Stable Jobs: Long-term projects mean long-term, stable employment for Filipinos, from construction to high-skilled factory and farm management.
  3. Accelerated Technology Transfer: Foreign investors bring with them new technologies and best practices, upskilling the local workforce and boosting productivity.
  4. Dynamic Rural Development: The boost to agriculture and agro-forestry will bring investment and opportunities to the countryside.
  5. Enhanced Global Competitiveness: Puts the Philippines on an equal footing with its ASEAN neighbors in the race for investment.
  6. Increased Agricultural Productivity and Food Security: Encourages investment in modern, large-scale farming that can boost our national food supply.
  7. Sustainable Industrial Growth: Fosters the development of modern industrial estates and eco-zones that are planned for the long term.
  8. A Boon for Filipino Landowners: Provides an opportunity for landowners to generate stable, multi-generational income by leasing their underutilized properties.
  9. Boosts Sustainable Development: Makes long-term projects in ecological conservation and renewable energy more financially viable.
  10. Strengthens Investor Confidence: This reform is a powerful signal to the world that the Philippine government is serious about creating a stable and predictable business environment.

10 Actionable Tips for Stakeholders in This New Era

This new law creates opportunities that must be seized.

  1. For Foreign Investment Groups: It’s time to put the Philippines at the top of your list. Re-evaluate your long-term projects for Southeast Asia; the calculus has fundamentally changed in our favor.
  2. For Filipino Landowners: If you have significant landholdings, this is the time to consolidate your titles and explore potential long-term lease partnerships that can secure your family’s future for generations.
  3. For Local Government Units (LGUs): Be proactive. Identify and zone areas within your province that are suitable for large-scale agricultural, industrial, or tourism projects and market them to potential investors.
  4. For Law and Real Estate Firms: Develop deep expertise in structuring 99-year lease agreements. You will be a critical service provider in this new investment wave.
  5. For University and TVET Leaders: Align your curriculum, especially in agriculture, forestry, and engineering, with the skills that these new long-term industries will demand.
  6. For Construction and Engineering Companies: Prepare for an increase in demand for large-scale, complex projects. Upgrade your capabilities and equipment to serve these new developments.
  7. For Economic Zone Developers: The business case for developing new private eco-zones, particularly for agro-industry, has never been stronger.
  8. For Financial Institutions: Develop new financing products tailored to both foreign investors funding these projects and the Filipino landowners who will be receiving long-term lease payments.
  9. For Filipino Entrepreneurs: Look for the “downstream” opportunities. Every new industrial estate or resort needs a universe of local suppliers and service providers.
  10. For All Filipinos: Understand and support this reform. This is a strategic move designed to create jobs and the economic foundation that will benefit our children and grandchildren.

Insights into the Law’s Strategic Brilliance

Let’s look deeper at the policy and economic strategy at play.

  1. A Surgical Strike on a Major Pain Point: This law is a direct and effective response to years of feedback from foreign business chambers. It shows a government that is listening to the market and is capable of decisive reform.
  2. The Psychology of “Permanence”: A 99-year lease extends beyond a single human lifetime. This creates a psychological sense of near-permanence that encourages investors to think in terms of building “legacy” projects, not just short-term ventures.
  3. Pragmatic Reform Without Constitutional Change: This is a masterful policy move. It dramatically boosts our investment attractiveness without touching the sensitive and complex issue of amending the constitutional restrictions on foreign land ownership.
  4. A Powerful Incentive, Not a Universal Handout: By linking the 99-year lease to registration under CREATE and other priority investment laws, the government has turned it into a powerful tool to steer investment towards the sectors that will benefit the country most.
  5. Unlocking Our Agricultural Superpower Potential: The Philippines has vast agricultural potential that has been held back by a lack of long-term investment. This law could be the single most important reform for unleashing the power of Philippine agribusiness in a generation.
  6. It De-risks Investment: For a foreign company, policy stability over the long term is a major concern. By codifying a 99-year lease into law, the Philippine government is significantly de-risking the investment environment.
  7. A Catalyst for Capital Markets: The development of large-scale, long-term leased properties could lead to the creation of new financial instruments and real estate investment trusts (REITs) centered on these assets.
  8. This is Pro-Competition: The law will attract new players from a wider range of countries, increasing competition and diversifying our sources of foreign investment beyond our traditional partners.
  9. The Focus is on “Productive Endeavors”: The law is explicit that the lease must be for productive use. This prevents land speculation and ensures that the leased properties are used to generate economic activity and jobs.
  10. A Statement of Confidence in Ourselves: At its core, this law is a statement of confidence by the Philippine government in our own long-term political and economic stability. We are telling the world we are a safe and reliable partner for the next century.

Frequently Asked Questions (FAQ)

1. Does this new law mean foreigners can now own land in the Philippines? No. The Philippine Constitution still restricts land ownership to Filipino citizens and corporations. This law only amends the maximum lease period. The land title and ultimate ownership remain with the Filipino landowner.

2. What was wrong with the old 75-year total lease term? For many large-scale, capital-intensive projects, especially in agriculture and heavy industry, a 75-year period was often not long enough to ensure a full return on a multi-billion-dollar investment, making us less competitive than neighbors who offered 99-year leases.

3. Why is 99 years the “magic number”? 99 years is a global benchmark for long-term leases. It is seen as a standard that provides enough security for even the most long-term investments, effectively covering multiple generations.

4. How does this law help create jobs? It encourages massive, long-term investments in projects like industrial parks, large-scale farms, and resorts. These projects require thousands of workers during the construction phase and provide thousands of stable, long-term jobs during their operational lifetime.

5. How does this benefit the Filipino landowner? It provides them with the opportunity to convert idle or underproductive land into a source of stable, predictable, and multi-generational income through a long-term lease agreement with a well-capitalized foreign partner.

6. What is the CREATE Act? The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act is a major law that reformed the country’s corporate income tax and incentives systems to make them more competitive and attractive to investors.

7. Who is Frederick Go? Frederick Go is the Special Assistant to the President for Investment and Economic Affairs, a key official tasked with coordinating the government’s efforts to attract more investments into the country.

8. Will this law lead to the displacement of small farmers? The law applies to the lease of private lands. The rights of existing tenants and the provisions of the agrarian reform law are separate matters that must still be respected. The goal is to make underutilized private lands productive.

9. Can an investor change the purpose of the land midway through the lease? The lease agreement will be based on a specific approved investment project. Any major change would likely require a new approval process to ensure it still aligns with the country’s priority sectors.

10. When does this law take effect? A new law typically takes effect 15 days after its publication in the Official Gazette or a newspaper of general circulation. Given it was signed on September 3, it will be in effect very soon.

Open for Business, For a Century

The amended Investors’ Lease Act is a watershed moment. It is a declaration of economic maturity and a bold invitation to the world. It tells the global investment community that the Philippines is not interested in short-term gains; we are building a foundation for a century of shared growth and prosperity.

This is visionary policymaking that will plant the seeds of progress for generations to come. With this new law, we are not just leasing land; we are leasing a stake in our bright and promising future. The welcome mat is out, and it is longer and more inviting than ever before.

Link Resources

  1. Philippine News Agency
  2. Philippine Board of Investments (BOI)
  3. Philippine Economic Zone Authority (PEZA)
  4. World Bank – Ease of Doing Business in the Philippines (for context on investment climate)

Key Phrases

  1. Amended Investors’ Lease Act
  2. Republic Act 12252
  3. 99-year lease for foreign investors
  4. Philippine foreign direct investment (FDI)
  5. CREATE Act incentives
  6. Long-term land lease Philippines
  7. Philippine global competitiveness
  8. Investment-led growth
  9. Agro-industrial enterprises
  10. Frederick Go investment and economic affairs

Best Hashtags

  • #InvestPhilippines
  • #RA12252
  • #PhilippineEconomy
  • #ForeignInvestmentPH
  • #99YearLease
  • #PhilippineBusiness
  • #EconomicReformPH
  • #CREATEact
  • #JobsPH
  • #SulongPilipinas

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