IRR for amended Public Service Act released paving the way for 'full foreign ownership' in select businesses

The National Economic and Development Authority (NEDA) on Monday released the implementing rules and regulations (IRR) of the amendments to the Public Service Act (PSA) "allowing full foreign ownership of businesses in select industries such as airports, railways, expressways, and telecommunications."

"With the IRR already in place, we see this as a landmark reform that will further improve the country’s position as an ideal investment hub, which will help enhance employment opportunities and allow more Filipinos to benefit from more improved goods and services,” said NEDA Secretary Arsenio Balisacan.

Prior to the approval of the amendments, foreign ownership in the aforementioned industries was limited to 40%.

Balisacan, however, emphasized that public service utilities such as electricity transmission and distribution, water and wastewater pipeline distribution system including sewerage, petroleum and petroleum products pipeline transmission systems, seaports, and public utility vehicles remain subject to the 60 to 40% foreign equity limitation.

"All 21 agencies, including NEDA, approved the Implementing Rules and Regulations of the amended Public Service Act," Balisacan added.

Balisacan also added that the enforcement of policies on competition and regulatory efficiency "necessitates comprehensive and transparent consultations with key stakeholders and legislators to ensure that these remain faithful to public interest."

The Public Service Act, signed on March 21, 2022, by then-President Rodrigo Duterte, amends the 85-year-old Commonwealth Act No. 146 by relaxing restrictions on foreigners to completely own businesses in the country, but with clear safeguards.

Balisacan said PSA amendments form a critical part of the endeavor to attract foreign investments to the country to boost market competitiveness, foster innovation, and create high-quality jobs. —VAL, GMA Integrated News