Duterte signs law allowing full foreign ownership of telcos, airlines, railways

[Mike J]

It will be interesting to see what impact this will have on future infrastructure projects.  Hopefully it will raise the bar in terms of quality and reliability at reasonable prices.  The final comment by Duterte of changes "just around the corner" leads me think there are companies already lined up?

 

https://newsinfo.inquirer.net/1571507/duterte-signs-law-allowing-full-foreign-ownership-of-telcos-airlines-railways

MANILA, Philippines — President Rodrigo Duterte on Monday signed the law amending the 85-year-old Commonwealth Act No. 146, or the Public Service Act, relaxing restrictions on foreigners to completely own businesses in the country.

Specifically, the law would allow full foreign ownership of businesses in select industries such as telecommunications, airlines, and railways.

Some sectors, however, will remain restricted to full foreign equity such as public utility vehicles, water, electricity, petroleum pipelines, and seaports.

According to Duterte, the amendments will support the country in “leading the path towards economic recovery amidst the COVID-19 pandemic.”

“I believe that through this law, the easing out of foreign equity restrictions will attract more global investors, modernize several sectors of public service and improve the delivery of essential services,” he said.

“Indeed, the enactment of this amended law, as well as the amended Foreign Investments Act, shall help stimulate the economy, especially for local businesses,” he added.

Apart from this, Duterte said the amendments are expected to generate more jobs for Filipinos, improve basic services, and allow for the exchange of skills and technology with the country’s foreign partners.

Meanwhile, other laws were also presented during the ceremonial signing. These include Republic Act 11647 or the “Foreign Investments Act”; Republic Act 11650 or the “Instituting a Policy of Inclusion and Services for Learners with Disabilities in Support of Inclusive Education Act”; as well as Republic Act 11648, which increased the age for statutory rape from 12 to 16 years old.

“The Administration hopes that these laws will aid and contribute to the country’s development, benefitting both the present and future generations. Just around the corner actually,” Duterte said.

 

Edited March 21, 2022 by Mike J

[Old55]

Could it be this law would break up those few ruling families monopoly on essential services and create competition lowering costs and increasing quality?

Or is it a way for China to simply take over? If so there will be many new luxury SUV's on the roads in Manila. 

Edited March 21, 2022 by Old55

[scott h]

16 minutes ago, Mike J said:

there are companies already lined up?

I believe so, not a month goes by with out an article in the business section of the paper where the international chamber of congress or a foreign ambassador does not call for such a change....

[graham59]

15 minutes ago, Old55 said:

Or is it a way for China to simply take over?

That's how I see it. Welcome China...and all THEIR nationals being employed wherever they can get away with it ? 

[Clermont]

18 minutes ago, Old55 said:

Or is it a way for China to simply take over?

You hit the nail on the head

[Dave Hounddriver]

I am on the China bandwagon too. DITO comes to mind. But will the law be enacted after the next election?  Will it have teeth with the next prez?

[Old55]

3 minutes ago, Dave Hounddriver said:

I am on the China bandwagon too. DITO comes to mind. But will the law be enacted after the next election?  Will it have teeth with the next prez?

That's a good question Dave. Philippines has a history to move the goal posts or change laws at their whim. $$$$$$$$

[Dave Hounddriver]

44 minutes ago, Old55 said:

Philippines has a history

Not just Philippines.  I am sure POTUS 45 made laws that 46 changed immediately upon election.  It happens.  Laws made just prior to an election are usually fluff.

[Jack Peterson]

57 minutes ago, Old55 said:

That's a good question Dave. Philippines has a history to move the goal posts or change laws at their whim. $$$$$$$$

 I would have thought that this type of issue would require an amendment at least, to the constitution  

[Old55]

1 minute ago, Jack Peterson said:

 I would have thought that this type of issue would require an amendment at least, to the constitution  

Good point and you could be right Jack.

We have seen changes to "deals" made in past administrations by newer ones. I think corruption or the like was used as the reason. I can't provide any examples.

Likely you have a better understanding of the situation there than I do.