production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of
whose capital is owned by such citizens. Such agreements may be for a period not exceeding twenty-five years,
renewable for not more than twenty-five years, and under such terms and conditions as may be provided by law.
In cases of water rights for irrigation, water supply fisheries, or industrial uses other than the development of
water power, beneficial use may be the measure and limit of the grant.
The State shall protect the nation’s marine wealth in its archipelagic waters, territorial sea, and exclusive
economic zone, and reserve its use and enjoyment exclusively to Filipino citizens.
The Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens, as well as
cooperative fish farming, with priority to subsistence fishermen and fish- workers in rivers, lakes, bays, and
lagoons.
The President may enter into agreements with foreign-owned corporations involving either technical or financial
assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils
according to the general terms and conditions provided by law, based on real contributions to the economic
growth and general welfare of the country. In such agreements, the State shall promote the development and
use of local scientific and technical resources.
The President shall notify the Congress of every contract entered into in accordance with this provision, within
thirty days from its execution.
Section 3. Lands of the public domain are classified into agricultural, forest or timber, mineral lands and national
parks. Agricultural lands of the public domain may be further classified by law according to the uses to which
they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands. Private
corporations or associations may not hold such alienable lands of the public domain except by lease, for a
period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one
thousand hectares in area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire
not more than twelve hectares thereof by purchase, homestead, or grant.
Taking into account the requirements of conservation, ecology, and development, and subject to the
requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public domain
which may be acquired, developed, held, or leased and the conditions therefor.
Section 4. The Congress shall, as soon as possible, determine by law the specific limits of forest lands and
national parks, marking clearly their boundaries on the ground. Thereafter, such forest lands and national parks
shall be conserved and may not be increased nor diminished, except by law. The Congress shall provide, for
such period as it may determine, measures to prohibit logging in endangered forests and watershed areas.
Section 5. The State, subject to the provisions of this Constitution and national development policies and
programs, shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their
economic, social, and cultural well-being.
The Congress may provide for the applicability of customary laws governing property rights or relations in
determining the ownership and extent of ancestral domain.
Section 6. The use of property bears a social function, and all economic agents shall contribute to the common
good. Individuals and private groups, including corporations, cooperatives, and similar collective organizations,
shall have the right to own establish, and operate economic enterprises, subject to the duty of the State to
promote distributive justice and to intervene when the common good so demands.
Section 7. Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to
individuals, corporations, or associations qualified to acquire or hold lands of the public domain.
Section 8. Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines
who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by
law.
Section 9. The Congress may establish an independent economic and planning agency headed by the
President, which shall, after consultations with the appropriate public agencies, various private sectors, and local
government units, recommend to Congress, and implement continuing integrated and coordinated programs and
policies for national development.
Until the Congress provides otherwise, the National Economic and Development Authority shall function as the
independent planning agency of the government.
Section 10. The Congress shall, upon recommendation of the economic and planning agency, when the
national interest dictates, reserve to citizens of the Philippines or to corporations or associations at least sixty per
centum of whose capital is owned by such citizens, or such higher percentage as Congress may prescribe,
certain areas of investments. The Congress shall enact measures that will encourage the formation and
operation of enterprises whose capital is wholly owned by Filipinos.
In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall
give preference to qualified Filipinos.
The State shall regulate and exercise authority over foreign investments within its national jurisdiction and in
accordance with its national goals and priorities.
Section 11. No franchise, certificate, or any other form of authorization for the operation of a public utility shall
be granted except to citizens of the Philippines or to corporations or associations organized under the laws of
the Philippines at franchise, certificate, or authorization be exclusive in character or for a longer period than fifty
years. Neither shall any such franchise or right be granted except under the condition that it shall be subject to
amendment, alteration, or repeal by the Congress when the common good so requires. The State shall
encourage equity participation in public utilities by the general public. The participation of foreign investors in the
governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and all
the executive and managing officers of such corporation or association must be citizens of the Philippines.
Section 12. The State shall promote the preferential use of Filipino labor, domestic materials and locally
produced goods, and adopt measures that help make them competitive.
Section 13. The State shall pursue a trade policy that serves the general welfare and utilizes all forms and
arrangements of exchange on the basis of equality and reciprocity.
Section 14. The sustained development of a reservoir of national talents consisting of Filipino scientists,
entrepreneurs, professionals, managers, high-level technical manpower and skilled workers and craftsmen in all
fields shall be promoted by the State. The State shall encourage appropriate technology and regulate its transfer
for the national benefit.
The practice of all professions in the Philippines shall be limited to Filipino citizens, save in cases prescribed by
law.
Section 15. The Congress shall create an agency to promote the viability and growth of cooperatives as
instruments for social justice and economic development.
Section 16. The Congress shall not, except by general law, provide for the formation, organization, or regulation
of private corporations. Government-owned or controlled corporations may be created or established by special
charters in the interest of the common good and subject to the test of economic viability.
Section 17. In times of national emergency, when the public interest so requires, the State may, during the
emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any
privately owned public utility or business affected with public interest.
Section 18. The State may, in the interest of national welfare or defense, establish and operate vital industries
and, upon payment of just compensation, transfer to public ownership utilities and other private enterprises to be
operated by the Government.
Section 19. The State shall regulate or prohibit monopolies when the public interest so requires. No
combinations in restraint of trade or unfair competition shall be allowed.
Section 20. The Congress shall establish an independent central monetary authority, the members of whose
governing board must be natural-born Filipino citizens, of known probity, integrity, and patriotism, the majority of
whom shall come from the private sector. They shall also be subject to such other qualifications and disabilities
as may be prescribed by law. The authority shall provide policy direction in the areas of money, banking, and
credit. It shall have supervision over the operations of banks and exercise such regulatory powers as may be
provided by law over the operations of finance companies and other institutions performing similar functions.
Until the Congress otherwise provides, the Central Bank of the Philippines, operating under existing laws, shall
function as the central monetary authority.
Section 21. Foreign loans may only be incurred in accordance with law and the regulation of the monetary
authority. Information on foreign loans obtained or guaranteed by the Government shall be made available to the
public.
Section 22. Acts which circumvent or negate any of the provisions of this Article shall be considered minimical to
the national interest and subject to criminal and civil sanctions, as may be provided by law.