MANILA: The Philippines has allowed foreigners to lease land for up to 99 years, as the Southeast Asian nation seeks to lure investors with longer-term property contracts.
Philippine President Ferdinand Marcos Jr. this week signed the law liberalising the lease of private lands by foreign investors, according to a copy posted on the government’s Official Gazette.
It amends a 1993 act, which allows lease contracts for 50 years, and renewable once for up to 25 years.
The measure aims to encourage investors to build industrial estates and factories as well as tourism and agriculture projects in the archipelago.
It puts the Philippines in a better position to compete in the regional race for investments where countries like Thailand offer better infrastructure, according to David Leechiu, head of Leechiu Property Consultants.
"This should open up a massive amount of investment capital from foreign parties” he said.
"This should propel projects such as hotels that will boost tourism,” Leechiu said, adding that the law gives companies more time to recover their investments.
Net foreign direct investments into the Philippines fell 26.9% to US$3 billion from January to May, data from the Philippine central bank show.
Many countries in Southeast Asia, including the Philippines, restrict foreign ownership of land, but governments allow multi-decade leases.
The new law also allows the Philippine president to impose shorter lease period for investors engaged in vital services or industries considered as critical infrastructure for national security or priorities for national development.
Marcos this week also signed a law aimed at boosting state revenue from large mining operations through a profit-based tax system that miners say may help attract fresh investments. - Bloomberg
