MANILA, Philippines — The Joint Foreign Chambers (JFC) of the Philippines wants the National Economic and Development Authority (NEDA) to recommend to President Duterte to certify as urgent amendments to the Foreign Investment Act, Public Services Act and Retail Trade Act, as well as the passage of the Open Access in Data Transmission bill to show the government is serious in encouraging investors to come to the country.
“We respectfully suggest that you recommend certification by President Duterte of these four measures as priority legislation and their inclusion in the legislative agenda he will discuss in his forthcoming State of the Nation Address (SONA) on July 26,” JFC said in a letter to Acting NEDA Secretary Karl Kendrick Chua.
JFC said the SONA would provide an opportunity to highlight reforms to prove the country is serious in positioning itself as one of the most attractive destinations for foreign investment in Southeast Asia.
Amendments to the Foreign Investments Act would lower capital requirements for foreign investments subject to certain conditions on technology and employment.
Meanwhile, amendments to the Public Service Act would allow full foreign ownership in the public service sector such as transportation and communication.
For the Retail Trade Liberalization Act, its proposed amendment would reduce the minimum paid-up capital requirement for foreign retail investors to entice new foreign investments in the retail sector.
The Open Access in Data Transmission bill seeks to have better access, more affordable, as well as quality data transmission services, by allowing entry of more players and promoting the sharing of infrastructure and resources among service providers.
“In the absence of amendments to the foreign equity restrictions in the Constitution, the above reforms would substantially demonstrate to the foreign investment community a Philippine commitment to structural reform in the country’s foreign investment regime,” JFC said.
This, as JFC noted the Philippines is the most restrictive out of 69 countries in the Organization for Economic Cooperation and Development Foreign Direct Investment Regulatory Restrictiveness Index.
“With the world economy in depression this year, enactment of these reforms and passage of the CREATE (Corporate Recovery and Tax Incentives for Enterprises) bill (with some amendments we have suggested to the Senate) will assuredly reinforce our efforts to revive foreign investor interest in the Philippines,” the JFC said.
While the four measures failed to pass during the 17th Congress, JFC said there is ample time in the second regular session of the 18th Congress to approve the awaited reforms.
JFC is composed of the American, Australian-New Zealand, Canadian, European, Japanese, Korean chambers and Philippine Association of Multinational Companies Regional Headquarters Inc.
The coalition represents over 3,000 companies engaged in over $230 billion worth of trade and some $30 billion worth of investments in the Philippines.