TWO weeks after missing the limelight, President Rodrigo Duterte has certified as urgent three economic bills seen to lift restrictions on foreign investors.
According to Malacañang, passage of the urgent bills would boost investments and spur the country’s economic growth.
In a letter addressed to the Senate and the House of Representatives, Duterte cited the need for both chambers of Congress to pass three economic bills, which include:
- An Act Amending Commonwealth Act No. 146, otherwise known as the “Public Service Act,” as Amended
- An Act Promoting Foreign Investments, amending thereby Republic Act No. 7042, otherwise known as the “Foreign Investments Act of 1991,” as Amended, and for other purposes
- An Act Amending Republic Act No. 8762, otherwise known as the “Retail Trade Liberalization Act of 2000,” by lowering the required paid-up capital for Foreign Retail Enterprises, and for other purposes
Duterte said that the measures will address the immediate and continuing need for legislative reforms to provide a more conducive investment climate, increase job opportunities, foster more competition, and further spur the country’s economic growth.
Of the three urgent bills, the most controversial appears to be the proposed amendments to the Public Service Act, which delves on removing the 40 percent constitutional limit to foreign ownership of public utility businesses like power distribution and transmission, water and sewerage pipelines, air transportation, ports, airports and communication.
According to the National Economic and Development Authority, relaxing restrictions on foreign ownership of businesses would somehow foster a healthier competition in the Philippine market.
On the amendments to Foreign Investments Act, foreigners would be allowed to practice their professions in the country and lower the direct-hire requirement from 50 to 15 local workers for foreigners to start a small and medium-sized enterprise.The proposed amendments to the Retail Trade Liberalization Act will reduce the minimum paid-up capital requirement for foreigners to enter the retail sector.