MANILA – Senate President Francis “Chiz” G. Escudero expressed confidence that the Philippines will attract more foreign investors following the enactment of a law extending land lease contracts for non-Filipinos to 99 years.

The measure, principally authored by Escudero during the 19th Congress, was signed into law by President Ferdinand Marcos Jr. on September 3. It amends Republic Act No. 7652 or the Investors’ Lease Act of 1993, which previously allowed foreign investors a maximum lease term of 75 years.

“Foreign investors have long complained about the prohibitive provisions of our laws regarding the ownership of land by non-Filipinos. Businesses will never place their funds in destinations where there is uncertainty in laws and regulations. This law will go a long way in addressing these concerns,” Escudero said.

He stressed that stability in the investment environment is as important as the Philippines’ geographic location, English-speaking workforce, and reputation for hard work. “We may be strategically situated geographically, have a predominantly English-speaking workforce, and have among the hardest working people in the world, but unless there is stability in the investment environment, none of these advantages we have will help us in competing for investors,” he added.

The law requires that leased property be used only for the approved and registered investment. Projects must begin within three years from the signing of the lease contract, or entitlements may be revoked. Lease agreements are renewable by mutual agreement and cannot be altered, modified, or cancelled except through direct legal proceedings.

The law also allows subleasing with the lessor’s consent, unless specifically prohibited in the contract. It imposes penalties for leases exceeding 99 years, using the property for unlawful purposes, or exceeding approved land areas. Violations will void the contract and may result in fines of ₱1 million to ₱10 million or imprisonment of six months to six years, at the court’s discretion.

Escudero thanked President Marcos for supporting the measure. “With the entry of more investments into the country, not only will more jobs be created but we will also gain from technology transfer that can be utilized to grow local enterprises and make them more competitive in the global stage,” he said.