99-year land lease a ‘game changer,’ business groups say

A proposed law that would allow foreign investors to lease land for up to 99 years has been approved by the Philippine Congress, a move business groups are calling a "game changer."

The bill, which was approved by the Senate and the House of Representatives in June 2025, aims to attract long-term foreign investment by providing greater stability for projects, fostering economic growth and creating jobs.

The Federation of Filipino Chinese Chambers of Commerce and Industry Inc. (FFCCCII) described the 99-year Land Lease Bill as a "game-changing" reform that will help the country's global competitiveness and attract "transformative" investments.

It said the proposal is a "historic opportunity" for the Philippines to align itself with top-performing Asian economies by offering long-term land lease options to foreign investors.

Senate President Francis Escudero, the principal author of the Senate's version of the bill, said it would provide a broad economic option for foreigners who can enter into business here without having to own land, which is prohibited by the Constitution.

The measure was identified as a priority by President Ferdinand R. Marcos, Jr.'s Legislative-Executive Development Advisory Council.

The measure extends the term of foreign leases to 99 years from 75, bringing the country in line with Singapore, Malaysia, and Indonesia.

It includes a provision authorizing the president to impose a shorter lease period for certain investors, with prior approval from the Fiscal Incentives Review Board (FIRB).

It also allows foreign investors to sublet properties unless prohibited under their contract. Sublease contracts of 25 years or more must be registered with the Register of Deeds, while contracts of less than 25 years are exempt.

The law will enable foreigners to acquire land leases for purposes like industry, agro-industrial, commercial, tourism, agriculture, agroforestry and ecological conservation.

A fine of P1 million to P10 million, or up to six years of prison time, will be imposed on foreign investors who enter a lease contract illegally.

The Implementing Rules and Regulations will be drafted by the Board of Investments and the Land Registration Authority, with input from the FIRB and other agencies.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a report by BusinessWorld that the measure "can help attract long-term foreign investment, particularly in capital-intensive sectors such as manufacturing, renewable energy, logistics, and tourism."

Rivera said the law offers investors predictability, security, and time to recoup their investments, making the Philippines a better investment destination.

He said the measure should be accompanied by "complementary reforms," like streamlined land titling, reduced red tape, improved infrastructure, and regulatory clarity.

He said without these reforms, the extended lease alone may not be enough to significantly boost foreign investor confidence.

Terry L. Ridon, convenor of think tank InfraWatch, said investors remain impeded by red tape, corruption, and high power costs.

He said 99-year land leases are effective land ownership which may entice foreign investment into the country, as land ownership by foreigners remains prohibited by the 1987 Constitution.

Calixto V. Chikiamco, president of the Foundation for Economic Freedom, said the measure could expand the investment scope to include agro-forestry and environment ventures.

The new law amends the 31-year-old Investors’ Lease Act or Republic Act No. 7652, which only allows foreign investors to lease private land for 50 years, renewable only once after 25 years.