In a significant move to attract foreign investment, the Philippine House of Representatives has passed a bill on its final reading, allowing foreign investors to lease private lands for up to 99 years. The vote was overwhelmingly in favor, with 175 votes for, three against, and two abstentions. The legislation, House Bill 10755, was spearheaded by Speaker Ferdinand Martin Romualdez and aims to address the limitations of the existing law, which only permits leases for 50 years, extendable by another 25 years.
This bill is a key component of the Legislative-Executive Development Advisory Council’s (LEDAC) priority measures. Speaker Romualdez expressed optimism that the new proposal would not only satisfy foreign investors but also spur new investments and encourage existing investors to expand their operations in the Philippines. This, he believes, will lead to increased job and income opportunities, bolstering the country’s economic growth.
Romualdez highlighted that the bill aligns with President Ferdinand R. Marcos Jr.’s policy of welcoming legitimate foreign capital, and mirrors practices in other countries within the region. The goal, he stated, is to enhance the Philippines’ competitiveness on both regional and global stages in attracting foreign investments.
House Bill 10755 underscores the state’s commitment to encouraging foreign investments while adhering to the constitutional mandate to protect and develop the nation’s heritage. It introduces a flexible policy on long-term leases for private lands, aimed at supporting a variety of productive ventures including industrial estates, factories, agro-industrial enterprises, and tourism, among others.
The bill also emphasizes the importance of ensuring the reliability of lease contracts to provide stability and a secure return on investment for foreign investors. It defines ‘private lands’ as those separated from public domain and distributed through various state grants, including patrimonial properties managed by investment promotion agencies as defined by the CREATE Act.
Violations of the bill’s provisions could result in fines ranging from PHP1 million to PHP10 million. The Senate has also moved forward with its version of the legislation, Senate Bill 2898, known as the Investors’ Lease Act, which was approved on Monday.