Five European telecommunication companies are expected to invest in the Philippines once Malacanang finally signed the amended Public Services Act (PSA), according to Trade and Industry Secretary Ramon M. Lopez.
Lopez said the telcos are from Germany, United Kingdom and Denmark but did not give further details.
In a radio interview, Lopez revealed that “easily” four to five foreign telco firms in the technology sector are just awaiting President Duterte’s signature of the amended law after it was ratified by the Senate. He expects the PSA to become a law within 30 days.
The amended PSA opens public services to majority foreign ownership, including telecommunications.
“More players, more competitive,” the trade chief said as he noted complaints of poor Internet service and high cost.
Already, the German-Philippine Chamber of Commerce and Industry (GPCCI – AHK Philippinen) expects vast amount of foreign business opportunities as soon as the Amendments to the PSA is signed into law.
“Aside from locally introducing international public service standards, we would also like to present sustainable business practices in the liberalized sectors,” said GPCCI Executive Director Christopher Zimmer. “We certainly welcome the positive developments as we look forward on the establishment of much-needed reforms to enable foreign investors to participate in critical and fundamental areas of local public services.”
“Companies not only from Germany, but also all over Europe, already see immense opportunities once this reform is signed into law,” said GPCCI President Stefan Schmitz. "Moreover, effectively utilizing the advantages from this major economic reform shall provide certainty among investors and shall also encourage job creation that would not only help stimulate the recovery of the Philippine economy, but also exceed the growth rates of the country from pre-pandemic times."
The amendments to the PSA seeks to ease or lift restrictions on foreign investments in Philippine public utilities by amending or repealing provisions that limit foreign participation in certain economic activities. The bill also seeks to distinguish between the definitions of “public utilities” and “public services.”
Moreover, the proposed law entails that any industry not classified under public services – such as air carriers, domestic shipping, expressways, railways, subways, and telecommunications – will be liberalized and/or be open to 100 percent foreign ownership.
GPCCI belongs to the international network of German Chambers of Commerce Abroad (AHKs) that is represented by 140 offices in 92 countries. GPCCI is the official representation of German businesses in the Philippines; a bilateral membership organization with around 300 members; and a service provider to companies in their market entry and expansion.
Together with the Amended Retail Trade Liberalization Act and Foreign Investments Act, Lopez expects more foreign companies investing in the country.
Lopez noted that the Philippines is now number four from number six in Southeast Asia in terms of FDI inflows. FDI inflows in the country now hover around $9 billion under the Duterte administration from only $3 billion previously.
In recent courtesy call, UK Prime Minister’s Trade Envoy Richard Graham also informed Lopez of British interest in further developing the two countries’ partnerships in infrastructure, renewable energy, creative industry, and digitalization.
British firms also indicated interested in logistics and telco in the country.