The Philippine Economic Zone Authority (PEZA) welcomed the enactment of Republic Act 12252 which amends the Investor’s Lease Act to extend the maximum lease period for private lands from 50 years to 99 years.
PEZA said the measure would also benefit state-run ecozone authorities, including the Bases Conversion and Development Authority, Subic Bay Metropolitan Authority and Clark Development Corp., which lease state-owned land to investors under long-term contracts.
PEZA director-general Tereso Panga said the law would lower entry barriers for investors.
“Instead of purchasing land upfront under the 60-40 Filipino-foreign ownership rule, investors can now establish brick-and-mortar facilities under a predictable long-term lease arrangement. This lowers entry barriers, reduces risk, and enhances the country’s attractiveness as an investment hub,” he said.
The agency said the measure would provide multinational companies in manufacturing, agro-industrial processing, tourism, renewable energy, logistics and IT-BPM with greater security and flexibility for capital-intensive projects that require long gestation periods.
The Philippines now joins regional peers like Singapore, Malaysia, Thailand and Cambodia in offering 99-year leases to foreign locators.
The law complements the CREATE More Act, which offers a stronger package of fiscal and non-fiscal incentives to boost the country’s competitiveness.
“PEZA will leverage this reform to further attract and retain long-haul foreign and local investments that generate jobs, exports, and sustainable economic growth,” Panga said.
