NEDA on EO 98: PHL economy doesn't restrict foreigners

(Updated 5:16 p.m.) The Philippines is just about ready to come up with a cleaned up version of the Foreign Investment Negative List (FINL), which largely governs both investors and professionals doing business in the country and forms part of the initiative toward the ASEAN economic integration in 2015.

 

The shortened list is aimed at “assuring the investing community that the [Philippine] economy is not restrictive,” Emmanuel Esguerra, National Economic Development Authority deputy director general, told reporters at the sidelines of the NEDA briefing on Tuesday.

 

A shortened version of the current list, which identifies investment areas and activities reserved for Filipinos, will be ready for President Benigno S. Aquino III's final nod early next year.

 

“We have a draft of the amendments to EO (Executive Order) 98,” Socioeconomic Planning Secretary Arsenio Balisacan said at the same briefing, referring to changes to the Ninth Regular FINL which Aquino signed in October 2012 and took effect in November 2012.

 

The changes largely cover the practice of foreign professionals in the Philippines as well as foreign interest in some business. 

 

The draft is now being reviewed by the Professional Regulation Commission, and the Department of Justice is looking at possible inconsistencies with existing laws. 

 

“Many of those listed in the list are not really necessary like those practice of profession that are requiring reciprocity by our country partners,” said Balisacan, who is also the NEDA director general.  

 

Under the Foreign Investments Act of 1991 (Republic Act 7042), foreign investors are allowed to own 100-percent equity in businesses not covered by the negative list.

 

Ildemarc Bautista, research head at listed Metropolitan Bank & Trust Co., told GMA News Online on Wednesday the update is a step in the right direction for the Philippines. 

 

“Liberation of foreign professionals... That is in line with ASEAN economic integration and could bring in new skills and know-how,” he said. 

 

“For industries, anything that improves competition, should be a positive,” Bautista added.

 

The amended FINL beefs up the Philippine initiative toward the economic integration of the Association of Southeast Asian Nations (ASEAN), Balisacan said. 

 

The 10-nation bloc is opening up the market economies of member-countries and streamlining professional standards to boost the region’s industries and competitiveness.

 

Right now what the administration wants is to come up with a well-polished list.

 

“We really don’t want to dilly-dally here… We would really want to… get this early part of next year,” Balisacan said.

"However, NEDA has not yet fully shared its draft with the business community for comment," Forbes noted. "We hope it will do so before finalizing the proposed amendments." – VS/KG/BM, GMA News