Manila: President Ferdinand R. Marcos Jr. has enacted Republic Act (RA) 12252, which modifies the existing Investors' Lease Act (RA 7652) to permit foreign investors to lease private lands in the Philippines for up to 99 years. Previously, the maximum duration for long-term leases was set at 50 years, with an option to renew for an additional 25 years.

According to Philippines News Agency, the new law provides that the President may mandate a shorter lease duration for investors involved in vital services or industries classified as critical infrastructure, if it serves national security or development interests. The legislation mandates foreign investors to hold an approved investment and adhere to regulations stipulated by the relevant investment promotion agency.

The law further states that any withdrawal of the approved and registered investment in the Philippines during the lease period, or any unauthorized use of the leased area, will lead to the immediate termination of the lease contract. This termination does not affect the lessor's right to claim compensation for any damages incurred.

For tourism projects, the lease of private lands is restricted to those with investments of at least USD5 million, with a requirement that 70 percent of this investment be allocated to the project within three years of the lease contract's signing. Should the investor fail to commence the project within this timeframe, the contract may be terminated.

The law also emphasizes that foreigners, associations, or partnerships not investing in the Philippines remain subject to Presidential Decree No. 471 and other existing laws concerning the lease of lands to foreigners. These entities are only permitted to lease private lands for a maximum of 25 years, with an option to renew for an additional 25 years.