MANILA, Philippines – The Joint Foreign Chambers (JFC) in the Philippines has called for the amendment of a law seen hampering the  entry of foreign direct investments to the country, particularly in the infrastructure space.

The JFC cited the Public Services Act of 1938 as having an antiquated definition of “public services” and no clear definition of “public utility.”

The group is proposing that the law be amended and the definition of public utility be limited in the present context.

According to the JFC, the concept of public utility should separate the physical infrastructure from the services, as only the latter should be considered as public utility imbued with public interest.

 “This way, foreign investment can come in for much needed infrastructure,” the JFC said.

The JFC has expressed its support to the administration’s economic agenda of opening up the economy and amending the relevant Constitutional provisions.

Among the leading challenges for the country which the group has identified in its Arangkada Philippines forum last year are the weakness of the country’s agribusiness and mining sectors, as well as congestion in which demand for infrastructure exceeds available supply.

The JFC said telecommunications is a critical infrastructure area for the Philippines as the poor quality of broadband service disadvantages the consuming public.

In line with this, the JFC continued to air its support to the Philippine Competition Commission (PCC) in its ongoing battle with industry giants PLDT and Globe regarding their P70-billion acquisition of San Miguel Corp.’s telecommunications assets.

The JFC earlier expressed its concern over the preliminary injunction issued by the Court of Appeals enjoining the PCC from reviewing the SMC-PLDT-Globe transaction in May 2016.

“Sen. (Sherwin) Gatchalian is keen on filing a resolution to investigate the acquisition of the San Miguel Corp.’s telecoms assets by Philippine Long Distance Company and Globe Telecoms, specifically the purchase of the 700 MHz band. The JFC committed to provide materials on this subject,” the JFC said.

Source: www.philstar.com/business