THE private sector on Tuesday lauded the signing of the amended Public Service Act (PSA) that allows full foreign ownership of companies in telecommunications, airlines, shipping, railways and toll roads.
The Management Association of the Philippines (MAP) said the revised PSA would encourage the flow of more foreign investments into the country and “foster strong competition that will benefit consumers, create more jobs, expand our economy, and boost our recovery from the disruptions caused by COVID-19.”
“A more open Philippine economy will enable us to catch up with our more progressive neighbors in Asean (Association of Southeast Asian Nations),” MAP president Alfredo Pascual said in a statement.
The German-Philippine Chamber of Commerce and Industry (GPCCI) said the signing of the law would lure global players that will help modernize essential public services such as telecommunications and shipping.
The amended PSA limited the definition of public service to the distribution and transmission of electricity, petroleum and water, seaports and public utility vehicles. Public service sectors not covered by this definition are thus no longer covered by the 40-percent foreign ownership cap set under the 1987 Constitution.
“This game-changing law shall break major economic barriers in the country and will be beneficial for the economic recovery,” said GPCCI executive director Christopher Zimmer.
The American Chamber of Commerce of the Philippines (AmCham) also noted that the signing of the investment liberalization bills “will significantly help the Philippines compete with its regional neighbors in bringing in investments to the Philippines. It will also be extremely helpful to the long-run recovery of the economy after the pandemic.” (©Philippine Daily Inquirer 2022/Ben O. de Vera)
