Senate ratifies bill amending Foreign Investment Act

The Senate on Tuesday ratified the bicameral conference committee report on the bill that seeks to amend the Foreign Investments Act of 1991.

Senate Economic Affairs committee chairperson Imee Marcos sponsored the reconciled version of Senate Bill 1156 and House Bill 300.

“From a single-line, single provision bill simply lowering the investment minimum, I think we have far more comprehensive and pragmatic law,” Marcos said.

Marcos said the bicameral conference committee considered the following in the reconciled version of the bill:

• Clarified the definition of investments in the practice of professions, adopting the Professional Regulatory Commission’s definition of profession.
• Changes in the composition of the Inter- Agency Investment Promotion Coordinating Committee, designating the Finance Secretary as vice chairman of the panel. The bill also added a representative from the National Capital Region to the list of representatives from Luzon, Visayas and, Mindanao.
• Establishment of an online portal for foreign investors.
• Clarification of language in the provision regarding the compliance with export requirements under CREATE or Title 13 of the National Internal Revenue Code.

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• Rationalization of language on labor requirements for employments in firms with lower paid-up capital of $100,000.
• Strengthening of language for the recognition of the rights of employees and institutionalization of the requirement of understudy programs for alien employment permits.
• Clarification on industries reviewed related to national security. It is now limited to foreign investment involving military-related industries, cyber infrastructure, pipeline transportation, or such other activities which may threaten territorial integrity and safety, security, and well-being of Filipino citizens.
• Adoption of anti-graft provision which simplified the list of penalties. Any public official or employee involved in investment promotion shall commit any of the acts of Section 3 of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

Marcos thanked their counterparts in the House of Representatives as well as the business groups, ecozones, and foreign chambers for their cooperation.

“I also enjoin our colleagues’ to support the further efforts to open up the economy and invite foreign investors in these difficult times,” Marcos said.

In September, the Senate approved SB 1156 on third and final reading.

This bill is one of the three economic bills which were certified as urgent by President Rodrigo Duterte. — DVM, GMA News