Members of the House of Representatives open the 2nd regular session of the 19th Congress on July 24, 2023. Jonathan Cellona, ABS-CBN News/File 

MANILA - The House of Representatives has approved on second reading a measure seeking to extend land lease limits for foreign investors to 99 years from 75 years.

During the plenary session on Wednesday, the lower chamber approved House Bill 10755 via viva voce or voice voting. 

Under the measure, covered lease agreements shall be subject to the approval of the Department of Trade and Industry-Board of Investments, except for lease of lands within economic zones or freeport areas, which shall be subject to the approval of the relevant Investment Promotion Agency charged with the management and administration of the said economic or freeport zones. 

It allows foreign investors the option to register lease contracts with the Register of Deeds and outlines the conditions as an added protection for the foreign investor. The measure further expands the leasehold rights available to foreign investors by allowing the long-term lease contract to be pledged as a guaranty for a loan and by permitting leaseholders to sublet the leased land. It also increases the fine for violations to within the range of P1 million to P10 million. 

The bill is among the priority measures of the Legislative-Executive Development Advisory Council within the 19th Congress or until June 2025, in an effort to further open the economy to foreign investments.