The amended Foreign Investments Act is likely to support the economic recovery after the coronavirus disease 2019 (COVID-19) pandemic because of the resulting increase in foreign investment, the Department of Trade and Industry (DTI) said.
Trade Secretary Ramon M. Lopez said in a statement Friday that Republic Act No. 11647, which amended the Foreign Investments Act of 1991, will encourage more foreign investment after loosening the restrictions on foreign entrants.
The law was signed by President Rodrigo R. Duterte on March 2 and was released to the media Friday.
“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 law which aims to lessen barriers for foreign entry and is expected to hasten the country’s economic growth through foreign investment,” Mr. Lopez said.
Under the amended law, foreign investors are allowed to own up to 100% of some enterprises “unless participation of non-Philippine nationals in the enterprise is prohibited or limited to a smaller percentage by existing law and/or under the provisions of this act.”
The amendments also created the Inter-Agency Investment Promotion Coordination Committee, led by the DTI, which will promote and facilitate efforts to attract more foreign investment.
According to Mr. Lopez, “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,” Mr. Lopez said.
The amended Foreign Investments Act is one of three economic reform measures expected to drive the economic recovery, all of which hope to attract more foreign investment.
The other measures are amendments to the Retail Trade Liberalization Act, which were signed in December, and the amendments to the Public Service Act, which has yet to be signed. – Revin Mikhael D. Ochave
