Amendments to the country’s Public Service Act (PSA) is a game changer for the Philippines as it would open up more industries to foreign capital, according to the Board of Investments (BOI)
At the virtual “Breaking Economic Barriers” organized by the British Chamber of Commerce of the Philippines, Trade Undersecretary and BOI Managing Head Ceferino Rodolfo emphasized the importance of the amendments to the said measure.
The BOI, the government's premier investment generating agency, echoed the sentiment of many advocates that the proposed amendments to the PSA are a “game changer” for the Philippines to make investments opportunities happen in the country.
Rodolfo stressed that PSA will open up greater competition in various industries, as he pointed out that a blanket prohibition was not the best way to prevent the entry of malicious foreign investors into the country, as a dominant number of investors have an aim to only boost their business interests.
“Investors are waiting for the passage of the PSA,” he said, but noted that the success of the amendments is now in the hands of the lawmakers. The bill is still being discussed on the 2nd reading by the Senate.
The BOI managing head expressed hopes for the positive conclusion of the process to pass the amendments to the said measure for many investors are monitoring the developments.
The PSA seeks to modify an 85-year-old act to change the legal definition of “public services” and those that are blanketed by the category of the “public utilities” industry.
Once passed, Rodolfo said, the amended law will allow droves of foreign ownership on some crucial public services such as telecommunications and transportation.
In the same event, Trade Secretary Ramon Lopez shared that strong fundamentals of the economy would be an impetus for the Philippine economy’s eventual recovery, as the world is still reeling in the pandemic, especially now with the emergence of the Omicron variant of COVID-19. The PSA, he said, can foster greater competition in various industries such as the telecommunications industry.
Meanwhile, Representative Sharon Garin, Chairperson of the House Committee on Economic Affairs, backed the idea that the PSA will truly be a game changer for the Philippine economy. “It should open up for more foreign investors,” she said, emphasizing that the passage of the amendments to the said bill is a declaration that “we are open for foreign investors.”
Susan Bulan, of the Foundation for Economic Freedom, pointed out that PSA’s impact affects everyone, as it will open more investment opportunities for the transportation and logistics sector, and will benefit small farmers and even consumers with the decreased prices of basic goods.
Bulan, who is also the team leader of the Advocacy for the Enactment of Law Amending the Public Service Act, pointed out that the amendment to the PSA would improve the country’s telecommunications field, as it will reduce costs and promote further innovation.
Based on the Organization for Economic Cooperation and Development (OECD) ranking last year, the Philippines is at the third spot for most restrictive out of 83 economies on the Foreign Direct Investments (FDI) Regulatory Restrictiveness Index, following Palestine and Libya.