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. 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.
The Speaker also noted that the bill supports President Ferdinand R. Marcos Jr.’s policy of welcoming legitimate foreign capital, aligning with regional practices. Romualdez emphasized the importance of being competitive on both regional and global scales in attracting foreign investments.
House Bill 10755 outlines that it is state policy to promote foreign investments in line with the constitutional goal of conserving and developing the nation’s resources. The bill allows for long-term leases on private lands for various productive uses, including industrial estates, factories, and agricultural and tourism projects. It also ensures the stability and reliability of lease contracts to safeguard investors’ returns.
The bill defines ‘private lands’ as those separated from public domain and distributed through various state grants. This definition extends to 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, indicating strong legislative support for enhancing the Philippines’ appeal to foreign investors.