MANILA, Philippines — The Philippines just took a big step toward becoming a more attractive destination for global investors.
Senate President Francis “Chiz” Escudero announced that a new law extending foreign land leases from 75 to 99 years could open the floodgates for international businesses looking to set up shop in the country.
“Foreign investors have long complained about our restrictive land laws,” Escudero said. “This law addresses that—and sends a strong message: The Philippines is open for business.”
The new legislation, Republic Act 12252, was signed by President Ferdinand Marcos Jr. on September 3. It amends the Investors’ Lease Act of 1993, allowing foreign investors to enter into longer, more secure land lease agreements.
Why This Matters
Escudero emphasized that land stability is crucial to foreign investors.
“No business will pour millions into a country if there’s a risk of losing their lease after just a few decades,” he noted.
While the Philippines has a lot going for it—strategic location, English-speaking workforce, and hardworking people—Escudero said that wasn’t enough.
“Unless investors see consistency and reliability in our policies, those strengths won’t matter.”
What the New Law Says
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Land leases can now run up to 99 years, up from the previous cap of 75.
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Leased land must be used strictly for the registered investment purpose.
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If an investor fails to begin their project within three years, they could lose their rights under the law.
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Leases may be sublet (with permission), and contracts are protected from outside interference—they can only be modified through proper legal channels.
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Penalties are strict for any abuse, including:
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Leases longer than 99 years
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Illegal use of the property
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Leasing more land than approved
Violations can lead to fines of ₱1M–₱10M, imprisonment, and contract cancellation.
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The Bigger Picture
Escudero believes this law could spark a wave of investments that don’t just bring money—but opportunity.
“More investors mean more jobs,” he said.
“And with them comes technology and knowledge that can help our local industries grow and compete globally.”
