The newly signed Amended Foreign Investments Act (FIA) has created an Inter Agency Investment Promotion Coordination Committee (IIPCC), which will establish a comprehensive marketing plan in the promotion of investments into the country as the law opens up economic sectors to 100 percent foreign ownership.
Under the law, the IIPCC shall be composed of the Department of Trade and Industry (DTI) as chairperson and the Department of Finance as vice-chair. Others members of IIPC include the Board of Investments, Philippine Economic Zone Authority, Department of Foreign Affairs, Office of the Undersecretary for Multilateral Affairs and International Economic Relations, National Economic and Development Authority, Department of Information and Communications Technology, Commission on Higher Education, Technical Education and Skills Development Authority, and four representatives each from the National Capital Region, Luzon, Visayas, and Mindanao to be chosen from a list of nominees prepared and submitted by nationally recognized leading industry or business chambers,
The role of IIPCC is to establish both medium and long term Foreign Investment and Marketing Plan (FIPMP) that will coordinate all existing investment development plans and programs and under the BOI, PEZA and various investment promotion agencies, local government units, and other agencies.
The FIPMP is a medium five-year plan and longer ten-year plan to be developed by the IIPCC based on competitive advantages, natural resources, skills, educational development, traditional linkages, and international market potential and should be fully consistent with the strategic investment priorities plan under the National Internal Revenue Code. The FIPMP shall be uploaded in an online portal.
The IIPCC shall coordinate and when necessary partner with existing investment promotion agencies (IPAs) and special economic zones such as the Bases Conversion and Development Authority, Authority of the Freeport Area of Bataan, Clark Development Corp., Subic Bay Metropolitan Authority, Cagayan Economic Zone Authority, John Hay Management Corp., Poro Point Management Corp., Zamboanga City Special Economic Zone Authority, Phividec Industrial Authority, Aurora Pacific Economic Zone and Freeport Authority, Tourism Infrastructure and Enterprise Zone Authority.
The inter-agency body is also task to design a comprehensive marketing strategy and campaign, promoting the country as a desirable investment area. It will also support inbound and outbound foreign direct trade missions, and encourage and support research and development in priority areas indicated by the FIPMP.
It is also required to submit annual evaluation and reports to the President of the Philippines and the Congress regarding the activities of the IIPCC. It is also tasked to support local government efforts to promote foreign direct investments, expedite compliance with national requirements and address other safeguards and services requested by foreign investments.
Meantime, Francis Chua, founder of the International Chamber of Commerce
Philippines (ICCP), lauded the creation of the IIPCC under the DTI. “Our President signed Republic Act 11647 to ease foreign ownership restrictions. We believe that IIPCC under the leadership of Secretary Ramon Lopez can come up with a win win solution for local and foreign investors. Our economy will surely prosper under the leadership of Sec Lopez,” said Chua.
DTI Secretary Ramon M. Lopez said the Republic Act No. (RA) 11647, amending the Foreign Investments Act will help accelerate economy recovery as it will improve foreign investments inflow into the country.
“The amended Foreign Investment Law is positioned to attract more foreign investments amid the COVID-19 pandemic as it provides less stringent requirements for potential foreign investors to enter the Philippine market,” said Lopez.
Lopez said the new law will encompass more sectors to encourage more investments.
"We in the economic team have always been in favor of reasonably opening up the economy and liberalizing as many restrictions that hinder the continuous and fast growth of the economy,” he said.
“Indeed, we cannot overemphasize the importance of a major shift in mindset and economic policy direction. For the country to lead a path to recovery amid COVID-19, we have been a consistent advocate for the amendment of this passage which aims to lessen barriers for foreign entry and is expected to hasten the country’s economic growth through foreign investment,” he added.
The FIA of 1991 was a consolidation of Senate Bill No. 1156 and House Bill No. 300 and was eventually certified as urgent by President Duterte along with amendments for the Public Service Act and Retail Trade Liberalization Act last year.
“This is an opportune time for foreign investors, as the Philippines develops the necessary investment landscape through significant economic and regulatory reforms, complementing as well the recent full reopening of the economy as major cities in the country were de-escalated to Alert level 1,” said Lopez.