MANILA: Foreign investors in the Philippines will be able to lease private land for up to 99 years under a law signed this week, as the country looks to be more competitive in attracting offshore funding for long-term commercial and industrial projects.
The law, signed by President Ferdinand Marcos Jr on Wednesday (Sept 3) and made public on Friday, replaces a rule that leases of private land could run for up to 50 years and be extended once for another 25 years.
"It is the policy of the State to ensure the reliability of investors' lease contracts to provide a stable environment for foreign investments," the new law stated, saying projects could include industrial estates, factories and processing plants. Investors have long flagged the uncertainty created by the old law, especially for multi-decade investments.
The Philippine Constitution prohibits foreign ownership of private land.
In June, foreign business chambers said in a joint statement that an extension would create a "more stable and predictable leasehold system".
Central bank data shows net foreign direct investments in the Philippines declined by 27% at the end of May to US$2.96 billion from $4.04 billion a year earlier.
The Philippines continues to lag behind its South-East Asian peers in attracting foreign direct investment, drawing $8.9 billion in 2024 compared to US$20.17 billion for Vietnam and $24.2 billion for Indonesia, according to the UNCTAD World Investment Report 2025. - Reuters
