Duterte certifies 3 economic bills as urgent

President Rodrigo Duterte has certified as urgent three economic bills, which seek to boost investments and spur the country’s economic growth by relaxing restrictions to foreign investors.

President Rodrigo Duterte certifies as urgent three economic bills, namely the amendments to the Public Service Act, Foreign Investments Act, and Retail Trade Liberalization Act. pic.twitter.com/n03wMeYgGt

— Ted Cordero (@Ted_Cordero) April 13, 2021

In a letter addressed to Senate President Vicente Sotto III dated April 12, a copy of which was furnished to House Speaker Lord Allan Velasco, Duterte told  Congress that he certifies the immediate enactment of the following bills:

• An Act Amending the 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 the 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

The said measures are aimed to “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,” the President said in his letter.

The proposed amendments to the Public Service Act are seen to foster a healthier competition in the Philippine market as it eases foreign ownership restrictions in several industries, according to the National Economic and Development Authority (NEDA). 

Proposed amendments to the law seek to limit the definition of public utilities to electricity distribution and transmission, water and sewerage pipelines, air transportation, ports and airports, thereby removing the 40% constitutional limit to foreign ownership.

The measure was approved by the House of Representatives in May last year. 

Amendments to Foreign Investments Act, meanwhile, seek to allow foreigners 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.

Finance Secretary Carlos Dominguez, though supportive of amending the Foreign Investments Act, said that foreign ownership of land should be exempted. 

The proposed amendments to the Retail Trade Liberalization Act lowers the minimum paid-up capital requirement for foreigners to enter the retail sector.

Currently, under the Retail Trade Liberalization Act, enterprises with a paid-up capital below $2.5 million in peso equivalent are reserved exclusively for Filipino citizens and corporations wholly owned by Filipino citizens.

Senate Minority Leader Franklin Drilon’s bill seeks to remove the investment categories and set a minimum paid up capital investment equivalent of $300,000 in Philippine peso for foreign retailers. — RSJ, GMA News