In photo: Chris Nelson, British Chamber of Commerce Philippines Executive Director Executive and Trustee and staunch advocate of economic reforms in the Philippines expressed confidence that the signing of Foreign Investment Act will bring in more foreign investors in the Philippines (Photo collage from THEPHILBIZNEWS)
By THEPHILBIZNEWS STAFF
The long wait is over and \the newly amended Foreign Investment Act (FIA) was signed by President Rodrigo Duterte today, Friday 4th March 2022.
In the statement sent to THEPHILBIZNEWS by Chris Nelson, British Chamber of Commerce Philippines Executive Director Executive and Trustee, he said, “This development would pave the way to liberalize the Philippine economy by easing foreign entry barriers. This is a welcome development in time for the country to move to the next level of post-pandemic recovery. Apart from this, we hope that with the amendments of the Retail Trade Liberalization Act and Public Service Act, the Philippines can compete with its ASEAN neighbors.”
Now known as Republic Act No. 11647, the amendments to the FIA will now permit qualified foreigners to do business in the Philippines and invest in a domestic enterprise up to 100 percent of its capital. It also allows foreign investors to set up small- and medium-sized enterprises with 100 percent ownership.
The law also reduces the requirement of local employment for foreign companies. Originally requiring fifty (50) direct hires, the new foreign investments law now only requires fifteen (15) direct hires for foreign companies.
The Chamber would like to commend the Congress for their work in prioritizing the economic bills that were certified as urgent by President Duterte. As the Chamber actively promotes the new changes brought by the amendments to the Philippines’ retail trade laws, the Chamber will now carry alongside its promotions the changes that will be brought by RA 11647. The Chamber is confident that the country’s continued efforts in opening up its economy will eventually lead to a healthier and more welcoming environment for foreign investors, thus boosting the Chamber’s efforts in promoting doing business in the Philippines.
Furthermore, the Chamber eagerly awaits the passage of the amendments to the Public Service Act. The Chamber believes that it would be vital for the PSA amendments to be passed urgently, as the three key economic bills complement each other and will prove to be more effective once they are enacted and implemented in harmony with one another.