Philippine business in 2025 was a mixed bag: generally expanding with strong domestic demand and growth in services (around 5.5 percent GDP), as well as strong digital growth (e-commerce, logistics) and infrastructure needs, while navigating inflation, a weaker peso, and global uncertainties.
Local businesses grappled with headwinds such as political uncertainty, corruption concerns impacting investor confidence, and missed government growth targets despite initial optimism.
Among key sectors, electronics showed potential for rebound while consumer spending remained a pillar even as issues such as “ghost projects” and a dip in business sentiment during Q3 due to bad weather and “ghost month” highlighted persistent challenges.
Still and all, there were some bright spots in Philippine business in 2025, to wit:
99-year land lease
The 99-year land lease law in the Philippines, Republic Act 12252, was approved and signed by President Ferdinand R. Marcos Jr. on 3 September 2025, extending the previous 50-year limit for foreign investors to a single, straight 99-year lease for productive investments. This landmark legislation, amending the older Investors’ Lease Act, aims to attract more long-term foreign capital into industries like tourism, agriculture, and capital-intensive sectors such as manufacturing, real estate, logistics and renewable energy. By extending lease terms beyond the traditional 50 years, the reform reduced regulatory risk and improved project bankability, aligning the Philippines more closely with regional peers. The change is expected to support long-term foreign direct investment, especially for projects with long payback periods.
AI market growth
The Philippine artificial intelligence market gained momentum in 2025, fueled by adoption in BPO, fintech, e-commerce, healthcare, and logistics. Firms increasingly used AI for customer support, fraud detection, demand forecasting, and process automation. This growth reflects both the country’s strong digital talent base and rising private-sector investment in data infrastructure, positioning AI as a key driver of productivity gains and service-sector competitiveness.
P50.7-billion SEMPHIL expansion
Samsung Electro-Mechanics Philippines Corporation (SEMPHIL) announced a P50.7-billion expansion, underscoring confidence in the Philippines as a hub for high-value electronics manufacturing. The investment strengthens the country’s role in global supply chains for electronic components, supports export growth, and creates skilled jobs. It also reinforces the broader push to attract semiconductor and advanced manufacturing investments under the government’s industrial strategy.
SEMPHIL’s P50.7-billion expansion was exposed in early November 2025, following a meeting between President Marcos and Samsung executives during the APEC Summit in Busan, South Korea, with the formal signing occurring around 1 to 2 November, 2025, to boost the country’s advanced electronics and EV supply chain.
Maynilad IPO raises P34.3 billion
Maynilad Water Services raised P34.3 billion in its initial public offering, making it one of the most significant equity deals in the Philippine market in recent years. The IPO deepened local capital markets and provided funding for water and wastewater infrastructure upgrades. It also highlighted renewed investor appetite for large, stable infrastructure-linked assets amid improving market conditions. Maynilad’s IPO offer period ran from 23 October to 29 October 2025, with the shares officially listing and debuting on the Philippine Stock Exchange on 7 November 2025, under the ticker symbol “MYNLD”. This landmark P34.3 billion offering was one of the largest in the Philippines for 2025, attracting strong investor interest.
