FPI cautions on 99-yr. lease law

A prominent business group representing domestic manufacturers and producers is urging the government to implement safeguards to protect the local industry from a potential influx of foreign investors following the passage of a bill extending long-term lease contracts.

- By DEXTER BARRO II

The Federation of Philippine Industries (FPI) stated that the enactment of Republic Act (RA) No. 12252 represents a “bold step forward” towards making the country a serious player in attracting long-term foreign investments.

Signed by President Marcos last week, the law amends the Investors’ Lease Act by extending the maximum lease period for private lands to 99 years, replacing the previous rule of 50 years and a onetime renewal of up to 25 years.

The FPI stated that this law could help generate jobs and drive industrial growth in key sectors, including manufacturing, agriculture, and tourism.

The industry group, however, warned that the law should be “carefully calibrated” to protect local industries that have long served their communities.