New law allows foreign investors to lease land in the Philippines for up to 99 years

President Ferdinand R. Marcos, Jr. signed into law a measure that allows foreigners to lease land in the Philippines for up to 99 years.

Republic Act (RA) No. 12252 amends RA No. 7652 or the Investors’ Lease Act by further liberalizing the lease of private lands by foreign investors.

“It is the policy of the State to ensure the reliability of investors’ lease contracts to provide a stable environment for foreign investments,” the law read.

The law extends the term of foreign investors’ land leases to 99 years from the current 75, putting the country in line with policies of Singapore, Malaysia, and Indonesia.

Under the law, the President, upon the recommendation of the Fiscal Incentives Review Board (FIRB) or other agencies, can impose a shorter lease period for foreign investors in sectors considered as “critical infrastructure” in the interest of national security.

The law allows long-term land lease for “the establishment of industrial estates, factories, assembly or processing plants, agro-industrial enterprises, land development for industrial or commercial use, tourism, agriculture, agro-forestry, ecological conservation and other similar priority productive endeavors.”

In the case of tourism projects, the 99-year lease is limited to projects with an investment of not less than $5 million, 70% of which will be invested in the project within three years.

Under the law, foreign investors that violate the lease contracts face a fine of between P1 million to P10 million or imprisonment of up to six years.

The lease contract can be terminated if the foreign investor fails to start the investment project within three years of the signing.

This measure was a priority by Legislative-Executive Development Advisory Council for passage before the 19th Congress adjourned.

Mr. Marcos signed the law on Sept. 3, but a copy of the law was uploaded on the Official Gazette website on Sept. 4.

The law takes effect 15 days after it has been published in the Official Gazette or a newspaper of general circulation.

Source: Business World

Investing in people’s health

In his fourth State of the Nation Address (SONA), President Ferdinand R. Marcos, Jr. underscored healthcare as a central pillar of national development, highlighting landmark reforms and programs designed to bring accessible, affordable, and equitable care to every Filipino.

A key focus of the President’s address was the mental well-being of Filipino youth. With growing concerns over bullying and depression in schools, he ordered the hiring of additional guidance counselors in public schools to ensure that students receive the psychological support they need.

The administration is also investing in early childhood development. President Marcos announced the allocation of P1 billion to establish Barangay Child Development Centers (CDCs) in 328 low-income barangays. These CDCs will serve as vital daycare hubs that monitor immunization, nutrition, and growth of children under six, while providing supplementary feeding.

“The top priorities are far-flung areas. And this is just the start,” the President said, vowing to address the lack of daycare centers.

To strengthen disease prevention and early intervention, the Department of Health (DoH) has been tasked to “fast-track its childhood immunization program” and ensure that all Filipino children are fully immunized as soon as possible. Complementing this directive is the launch of the YAKAP Caravan — short for Yaman ng Kalusugan Program Para Malayo sa Sakit. This enhanced version of PhilHealth’s Konsulta Program expands access to outpatient services, essential medicines, laboratory tests, and even cancer screening at accredited facilities.

Addressing the alarming rise in obesity rates, particularly among adults aged 20 and above, President Marcos encouraged Filipinos to embrace active lifestyles. He called on local government units (LGUs) to revitalize public parks and plazas and to organize activities such as sports competitions, fun runs, Zumba classes, and aerobics sessions.

To further promote wellness, the President called for an expansion of “Car-Free Sundays,” an initiative now practiced in several major cities including Metro Manila, Baguio, Cebu, Iloilo, and Davao. The Philippine Sports Commission (PSC) will also open its track and field ovals in Pasig City, Manila, and Baguio City to the public free of charge.

Improving access to urgent care was another top priority. The President reported that 53 Bagong Urgent Care and Ambulatory Services (BUCAS) centers have been established in 32 provinces. These intermediate healthcare facilities bridge the gap between rural health units and hospitals, offering services such as minor surgeries and diagnostic testing. Over a million Filipinos have already benefited from BUCAS services between March 2024 and March 2025.

Another milestone emphasized in the SONA was the enhanced PhilHealth (Philippine Health Insurance Corp.) benefit packages rolled out under the Marcos administration.

Notably, the Z benefits package for kidney transplants was increased by more than 230%, from P600,000 to P2.1 million. In addition, the number of covered hemodialysis sessions has been raised from 90 to 156 annually, effectively covering the standard thrice-weekly dialysis regimen for a full year.

“For patients requiring dialysis, your thrice-weekly sessions and medicines are now free for the whole year. If a kidney transplant is needed, we have raised the coverage… and starting this year, PhilHealth will also cover health services and medicines after the kidney transplant,” the President said.

Other improvements to the PhilHealth Z benefits include coverage for major cardiac procedures such as heart valve replacements and post-surgical cardiac rehabilitation. PhilHealth has also raised coverage for severe dengue from P16,000 to P47,000 and for mild dengue from P10,000 to P19,500.

PhilHealth benefits for cataract surgery have significantly increased as well, from P16,000 to P80,000, expanding access to vision-restoring procedures for senior citizens and vulnerable groups. Persons with disabilities (PWDs) have also received added support, with PhilHealth now covering mobility devices like wheelchairs, walkers, and crutches, as well as rehabilitation services. The national government continues to shoulder PhilHealth premiums for all PWDs.

For cancer patients, the administration continues to implement the Cancer Assistance Fund (CAF), a DoH program mandated by the National Integrated Cancer Control Act (NICCA). The government has also earmarked an additional P1.7 billion for cancer medicines not yet covered by PhilHealth. President Marcos also affirmed support for human papillomavirus (HPV) vaccination, which helps prevent cervical and other HPV-related cancers.

A commitment reiterated by the President is the continuation of the Zero Balance Billing (ZBB) policy in DoH hospitals. Under this scheme, patients no longer need to worry about settling their hospital bills, as expenses for basic accommodation are covered in full by PhilHealth and government funds. This initiative ensures that patients and their families are not burdened by the financial complexities of healthcare access during critical times.

Through these sweeping reforms, President Marcos reaffirmed his administration’s vision of a healthier, more resilient Philippines. By addressing gaps in mental health, childhood care, disease prevention, and treatment affordability, the government is investing not only in people’s health but in the nation’s future.

Source: Business World

Heirs are not liable for their parents' debts

In the Philippines, the principle that heirs are not liable for their parents’ debts is a crucial aspect of inheritance law. This principle ensures that the financial obligations of a deceased person do not unduly burden their heirs. Let’s delve into the legal framework and provisions under the New Civil Code of the Philippines that govern this principle.

The Principle Explained

When a person passes away, their estate, which includes all their assets and liabilities, is subject to settlement. The estate is used to pay off any outstanding debts before any distribution to the heirs. However, if the estate is insufficient to cover the debts, the heirs are not personally liable to pay the remaining balance from their own pockets.

Key Provisions in the New Civil Code

The New Civil Code of the Philippines provides clear guidelines on this matter:

1. Article 774: Defines succession as the mode of acquisition by virtue of which the property, rights, and obligations to the extent of the value of the inheritance of a person are transmitted through his death to another or others.

2. Article 776: States that the inheritance includes all the property, rights, and obligations of a person which are not extinguished by his death.

3. Article 774: Emphasizes that the heirs are only liable to the extent of the value of the inheritance they receive. This means that if the inherited estate is insufficient to cover the debts, the heirs are not required to pay the excess from their personal assets.

4. Article 1311: Reinforces that contracts take effect only between the parties, their assigns, and heirs, except in cases where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law. This means that personal obligations of the deceased do not automatically transfer to the heirs.

Practical Implications

In practice, this means that if a parent leaves behind debts that exceed the value of their estate, the creditors can only claim up to the value of the estate. The heirs are protected from having to use their personal funds to settle these debts. This protection is vital for ensuring that the financial stability of the heirs is not compromised by the debts of the deceased.

Conclusion

The principle that heirs are not liable for their parents’ debts is a fundamental aspect of Philippine inheritance law. It ensures that the financial responsibilities of the deceased do not unfairly impact the heirs. The New Civil Code provides robust provisions to protect heirs, limiting their liability to the value of the inheritance they receive. This legal framework is essential for maintaining fairness and protecting the rights of heirs in the Philippines.

Source: The Manila Times and RALB Law