Domestic manufacturers said the extension of the land lease terms to 99 years under Republic Act 12252 or the Investors’ Lease Act positions the Philippines as a serious player in attracting long-term foreign investment across domestic industries, such as manufacturing, agriculture, tourism, among others, but also called for its careful implementation to safeguard long-standing local industries.
Elizabeth H. Lee, chairperson of the Federation of Philippines Industries (FPI), has called for a careful and calibrated implementation of the law to safeguard long-standing local industries. “This includes integrating mechanisms for local preference, particularly in areas vulnerable to land competition and possible market displacement, so that Filipino manufacturers and MSMEs are not sidelined by large-scale foreign entrants,” said Lee.
“Thoughtful execution is key to help balance investment inflows with the continued vitality of domestic enterprise.”
Thus, FPI would like a strong engagement in the Implementing Rules and Regulations (IRR) drafting process, coupled with review mechanisms, will be essential to ensure that the country reaps the full benefits of foreign investment while empowering long-standing Philippine industries. “This results in a win-win strategy that benefits the country as a whole,” said Lee.
Nonetheless, FPI said the law embeds key safeguards: leases must be registered and tied to approved investments, projects must start within three years, and misuse carries hefty penalties. These guardrails help ensure foreign capital builds—not displaces—local industry. It promises jobs, technology transfer, and industrial growth.
