The National Economic and Development Authority (NEDA) has
released the implementing rules and regulations (IRR) of the amended Public
Service Act (PSA) that allows full foreign ownership of some Philippine
businesses.

Upon its effectivity, the amendments to the PSA shall enable
the liberalization of key public services by allowing full foreign ownership of
businesses in select industries such as airports, railways, expressways, and
telecommunications.

Prior to the approval of the amendments, foreign ownership
in the aforementioned industries was limited to 40 percent.

Meanwhile, public service utilities such as electricity
transmission and distribution, water and wastewater pipeline distribution
system including sewerage, petroleum and petroleum products pipeline
transmission systems, seaports, and public utility vehicles remain subject to
the 60:40 foreign equity limitation.

In a statement Monday, March 20, NEDA Secretary Arsenio M.
Balisacan assured that the IRR has undergone extensive review and consultations
with the public, legislators, relevant administrative agencies, and other key
stakeholders.

Balisacan also said all 21 government agencies, including
NEDA, approved the IRR of the amended PSA, which will become effective on April
4, 2023.

“With the IRR already in place, we see this as a landmark
reform that will further improve the country’s position as an ideal investment
hub, which will help enhance employment opportunities and allow more Filipinos
to benefit from more improved goods and services,” Balisacan said.

Accordingly, the amendments also provide safeguard
provisions to protect the country against national security concerns that may
arise through any proposed merger or acquisition, or any investment in a public
service.

“The PSA amendments form a critical part of our endeavor to
attract foreign investments to the country to boost market competitiveness,
foster innovation, and create high-quality jobs,” Balisacan said.

Further, relevant administrative agencies may issue
guidelines and circulars for the effective implementation of RA No. 11659 and
its IRR, provided that these remain consistent with Commonwealth Act No. 146 as
amended, as well as with RA No. 11659 and its IRR.

“Together with complementary policies and measures… we are
confident that the Philippines will be able to attract much-needed capital and
technology, sustain its high-growth trajectory, and generate high-quality jobs
enabling rapid poverty reduction in the next six years,” Balisacan said.