Foreign business chambers and major local business groups on Wednesday expressed keenness about moves to extend the land lease period for foreign investors from 75 years to 99 years, seeing this as a means to improve the investment climate in the Philippines.
Enterprises that are based in the United States, the United Kingdom and Germany—overseas markets that have huge investments in the Philippines— expressed varying degrees of support toward such a change.
The Senate approved on third and final reading such a bill last Monday, while the House of Representatives passed their own counterpart version on Tuesday.
READ: House OKs bill that lets foreigners lease land for 99 years
“This reform would create more long-term certainty for foreign investors, which would help attract foreign investment and increase the country’s economic competitiveness,” said Ebb Hinchcliffe, executive director of the American Chamber of Commerce of the Philippines, in a message sent to the Inquirer.
Chris Nelson, executive director of the British Chamber of Commerce of the Philippines, expressed similar sentiments, reinforcing the view that amendments in the country’s land lease law is a step in the right direction.
“Having the lease for a very long period, in effect, negates the risk of non-ownership of the land,” Nelson told the Inquirer in a phone interview.
Marie Antoniette Mariano, president of the German Chamber of Commerce and Industry, similarly described the passage of such a law as a positive development. However, Mariano said that more important measures need attention.
“While the proposed legislation may offer opportunities for foreign investors, our 2024 World Business Outlook surveys underscore more urgent concerns for the German business community in the Philippines,” she told the Inquirer.
In particular, she cited actions that would address the shortage of skilled workers, rising energy costs, and persistent challenges in ease of doing business.
Meanwhile, key officials of the Philippine Chamber of Commerce and Industry (PCCI) and the Federation of Philippine Industries (FPI) also see the proposed legislation as a viable way to attract foreign investments.
“The whole intention of making ourselves attractive is for companies to come in the long term,” PCCI chair Geroge Barcelon said in a phone interview, emphasizing that a lease spanning 99 years is almost equivalent to ownership.
FPI chair Jesus Arranza said he also sees the measure as a viable way for attracting foreign investments, explaining that it provides a degree of security for foreign businesses.