Senators signaled on Tuesday that they are open to address concerns raised by foreign businessmen that it will take more than presidential edict to liberalize the economy, indicating readiness to do their part in relaxing foreign ownership restrictions, among other remedial legislations, to attract more investors to do business in the Philippines.

This is expected to include an upcoming review of the 82-year-old Public Service Act, the Telecommunications Act, the Foreign Investments Act and the Retail Trade Liberalization Act.

On Monday, the Joint Foreign Chambers said a lot remains to be done to liberalize the Philippine economy, even after President Duterte issued in October the 11th Foreign Investment Negative List (FINL). “The JFC welcome the 11th FINL promulgated in Executive Order 65 by President Rodrigo R. Duterte on October 31. However, we expect only modest gains in foreign direct investment [FDI] to result from the changes made in the new FINL,” the statement read.

Asked if senators would consider remedial legislation relaxing existing foreign ownership restrictions, Senate President Vicente C. Sotto III, however, clarified this will require Congress passage of an enabling law leading to “a Constitutional amendment.”

Senate Majority Leader Juan Miguel F. Zubiri, in a text message to the BusinessMirror, confirmed that senators have already agreed to frontload passage of the Public Service Act, adding, “it is a priority agenda everyday for floor deliberations, with Sen. Grace Poe as main sponsor.”

Senate Minority Leader Franklin M. Drilon, in a separate text message to the BusinessMirror, also assured he will not stand in the way and will, in fact, help facilitate its early approval.

“I support any move or legislative action that will bring improvements to our overall economic policies and increase the country’s foreign direct investments,” Drilon said.

He recalled that during his term as Senate president, “I led the Senate in shepherding various economic measures, one of which is Republic Act 10641 or the Full Entry of Foreign Banks in the country.”

Drilon added: “It was also during my time where senators amended the 50-year-old Cabotage law to allow foreign-flagged vessels to call at multiple ports and enable importers and exporters to co-load cargoes in foreign ships going in and out of the Philippines.”

The senate  minority leader asserted that “there is a need for these policy shifts in order to make the country more competitive.”

Sen. Emmanuel Joel J. Villanueva also assured support for legislation relaxing entry of foreign investors. “Yes. There are sectors that can be liberalized through legislation,” Villanueva told the BusinessMirror. “We need to bring in foreign investments to create competition in the economy.”

Villanueva voiced confidence this will “create more jobs,” as well as “better and cheaper services.” At the same time, the senator suggested that public utilities also need to be “redefined.”

“The technology when the Constitution was framed is different now,” Villanueva noted, citing telecoms as an example. “At that time, we have a single provider. Now, we can have many players.”

Villanueva acknowledged that telecoms will still require huge capitalization. “Opening it up to foreign investment will allow better competition,” he said. “Bidding and development of infrastructure should also be included so that we can subject the construction sector to more competition.”

According to Villanueva, this will also boost the Duterte administration’s ‘Build, Build, Build’ program “if we will engage the private sector more through the PPP [public-private partnership].”

Moreover, the senator stressed the need to review and update existing rules, citing for instance that ice plants are included as public utilities and limits foreign ownership. “As we can see, in this day and age, it does not make sense anymore to be protectionist about ice plants.”

This developed as Poe, chairman of the Senate Committee on Public Services,  moved to endorse remedial legislation amending the 82-year-old Public Service Act to relax existing restrictions in the economic environment in order to “provide more jobs and ensure reasonable rates of services.”

Source: https://businessmirror.com.ph/senators-keen-on-legislation-to-lure-investors-raise-fdi/