National Economy

Sec 2

Exploration, development and utilization of Sec 3

natural resources
Maximum size of landholdings
60% equity requirement – agreement for the
a.) Individual –
exploration, development or utilization of any
of the natural resources limited to the citizens Maximum: 12 hectares ( public
agricultural land acquired by purchase,
of the Philippines or to corporations or
associations at least 60% of the capital of which homestead or grant)
By lease: 500 hectares
is owned by such citizen.

- Intended for the conservation of
indigenous natural resources for Filipino
prosperity
- the government benefited from
licensing, concession and/or lease
scheme through fees, charges and
taxes.
The state may:
a. Undertake such activities directly
b. Enter into co-production, joint venture
or production sharing agreements with
Filipino citizens or corporations or
associations at least 60% of whose
capital is owned by such citizens
c. Enter into agreements with foreign-
owned corporations for large scale
exploration, etc.
*aliens may lease private lands but not lands of
public domain
b.) Corporations and associations –
Maximum area that may be leased: 1000
hectares
lease period: shall not exceed 25 years
renewable for not more than 25 years
*Private corporations can no longer
acquire lands of the public domain
by purchase.
*Qualified corporations and
associations may acquire private
lands but not alienable lands of the
public domain except by lease
Land Grant – for qualified farmers, landless
agricultural workers and other landless citizens

Maximum : 6 hectares “ to ensure that every

landless Filipino will have the opportunity to
Period of agreement acquire land”
- Not exceeding 25 years
- Renewable for not more than 25 years
- * 25 years is not satisfactory criterion
with respect to water rights for
irrigation, water supply, fisheries or
industrial uses ( the measure and limit
of the grant is there beneficial us
Sec 10 Art 16

Activities that are limited to Filipino citizens or Sec 11

corporations wholly-owned by a Filipino citizen:
1. Operation of rural banks
2. Engaging in retail trade business
3. Operation of registered overseas
shipping
4. Engaging in the rice and corn industry
5. Engaging in tax-free cottage industries
6. Contracts for the supply of materials,
equipment, goods, and commodities for
the government
7. Operation of atomic energy facilities
Mass media – limited to the citizen of the
Philippines, or to corporations, cooperatives or
associations, wholly-owned and managed by
such citizens.
- 100% owned and managed by such
citizen
Advertising industry – at least 70% of the capital
is owned by a Filipino citizen

Sec 11
Art 14
Limitations upon grant of franchise, certificate
or any other form of authorization for the Sec 4 par 2
operation of public utility:
Educational institutions, other than those
1. Grantee must be citizen of the established by religious groups and mission
Philippines or a corporation or boards, shall be owned solely by the citizens of
association the Philippines or corporations or associations
a.) Organized under the laws of the at least 60% of the capital of which is owned by
Philippines such citizens.
b.) At least 60% of the capital is owned
*While congress may not lower Filipino equity
by such citizen
below 60%, it may increase this up to 100%
*40% of capital may be owned by
aliens

2. Such franchise, certificate, or

authorization shall not be exclusive in character

3. Such franchise, etc. shall not be for a

longer period of fifty years

4. Such franchise or right granted shall be

subject to amendment, alteration or repeal by
Congress when the common good so requires.