BOTH Houses of Congress have ratified the bicameral conference committee report harmonizing a measure amending the Foreign Investments Act of 1991, which would open up more industries to foreign direct investment.
Senator Maria Imelda Josefa R. Marcos, the primary sponsor of the bill and chair of the Senate committee on Economic Affairs, said that the bicameral conference had used the Senate bill as the basis for the measure’s final version.
The report reconciled the differences between Senate Bill 1156 and House Bill 300.
“I am grateful to the House panel for their generosity and openness in accepting our thoroughgoing changes and their significant introduction of many amendments improving the law that we see now,” she said at the plenary session late Tuesday.
If approved, foreigners will be allowed to own 100% of more domestic market enterprises, with the exception of industries on the foreign investment negative list.
The required number of local direct hires for foreign companies will be reduced to 15 from the current 50.
The reconciled version also called for the establishment of an online portal for foreign investors.
The language on labor requirements was rationalized for employment in firms with lower paid-up capital of $100,000.
Ms. Marcos said that the language was strengthened to recognize the rights of employees and to institutionalize the requirement of understudy programs for alien employment permits.
Under the harmonized bill, a national security review is now limited to foreign investment involving military-related industries, cyberinfrastructure, pipelines, or other activities which may threaten the territorial integrity and safety, security, and well-being of Filipino citizens.
The measure will not cover financial institutions regulated by the Bangko Sentral ng Pilipinas and occupations under the jurisdiction of professional regulatory boards.
The anti-graft provision on the list of penalties was simplified. Any public official or employee involved in foreign investment promotion who commits violations is liable for fines of between P2 million and P5 million.
An Inter-Agency Investment Promotion Coordination Committee will also be created under the proposed law, which will be led by the Department of Trade and Industry.
The measure will now be sent to the Palace for the signature of President Rodrigo R. Duterte.
The Philippines was found to be the third most restrictive out of 83 economies on the Foreign Direct Investments Regulatory Restrictiveness Index compiled by the Organization for Economic Cooperation and Development in rankings released last year. — Alyssa Nicole O. Tan