NEDA lauds Duterte's signing of FINL
Published Nov 2, 2018 12:00 am
By Chino S. Leyco
The National Economic and Development Authority (NEDA) lauded President Rodrigo Duterte’s signing of the executive order that promulgated the long-delayed 11th Regular Foreign Investment Negative List (RFINL).
Ernesto M. Pernia
In a statement, Socioeconomic Planning Secretary Ernesto M. Pernia said that “We are very happy to see the 11th RFINL finally approved and signed.”
Last Monday, President Duterte signed Executive Order No. 65, promulgating the latest RFINL.
“This will help raise the country’s competitiveness, and allow us to be closer to parity with other ASEAN member-states by opening up more areas for foreign investment into the country, particularly those that will introduce new technology and stimulate innovation,” Pernia said.
The NEDA chief had noted that the Philippines is one of the most restrictive countries in ASEAN in terms of foreign direct investments. He added, however, that this is about to change with the recently signed Executive Order.
The 11th RFINL reflects amendments in existing laws (e.g., reciprocity provisions in certain laws on professions, such as pharmacy and forestry), and limitations on foreign participation in investment areas/activities provided in new laws (e.g., RA 10635 for marine deck/engine officers).
With the issuance of Executive Order No. 65, five investment areas and activities will now allow up to 100 percent foreign participation.
These include Internet businesses, teaching at higher education levels, training centers, adjustment companies, lending companies, financing companies and investment houses as well as wellness center.
These five areas may be amended by executive power, and do not require legislative action, the NEDA said.
Moreover, E.O. No. 65 also allows up to 40 percent foreign participation in contracts for the construction and repair of locally-funded public works, subject to applicable regulatory frameworks, and private radio communications network.
The 10th RFINL allowed only up to 25 percent and 20 percent foreign participation, respectively, in these areas.
Ernesto M. Pernia
In a statement, Socioeconomic Planning Secretary Ernesto M. Pernia said that “We are very happy to see the 11th RFINL finally approved and signed.”
Last Monday, President Duterte signed Executive Order No. 65, promulgating the latest RFINL.
“This will help raise the country’s competitiveness, and allow us to be closer to parity with other ASEAN member-states by opening up more areas for foreign investment into the country, particularly those that will introduce new technology and stimulate innovation,” Pernia said.
The NEDA chief had noted that the Philippines is one of the most restrictive countries in ASEAN in terms of foreign direct investments. He added, however, that this is about to change with the recently signed Executive Order.
The 11th RFINL reflects amendments in existing laws (e.g., reciprocity provisions in certain laws on professions, such as pharmacy and forestry), and limitations on foreign participation in investment areas/activities provided in new laws (e.g., RA 10635 for marine deck/engine officers).
With the issuance of Executive Order No. 65, five investment areas and activities will now allow up to 100 percent foreign participation.
These include Internet businesses, teaching at higher education levels, training centers, adjustment companies, lending companies, financing companies and investment houses as well as wellness center.
These five areas may be amended by executive power, and do not require legislative action, the NEDA said.
Moreover, E.O. No. 65 also allows up to 40 percent foreign participation in contracts for the construction and repair of locally-funded public works, subject to applicable regulatory frameworks, and private radio communications network.
The 10th RFINL allowed only up to 25 percent and 20 percent foreign participation, respectively, in these areas.