The bicameral conference committee report on revisions to the Foreign Investment Act to make the…
NEDA welcomes foreign direct investment
The 12th Regular Foreign Investment Negative List was promulgated by Executive Order (EO) No. 175, which is welcomed by the National Economic and Development Authority (NEDA) (RFINL).
Through Executive Order No. 175 on Monday, President Rodrigo R. Duterte released the 12th RFINL, which sets restrictions on foreign ownership for significant regions or activities.
“We applaud the publication of the 12th RFINL. The updated list is consistent with recently authorized revisions to the Foreign Investments Act, Retail Trade Liberalization Act, and Public Service Act (PSA) (FIA). The policy to loosen limits on foreign participation is also consistent with it, according to Karl Kendrick Chua, secretary of socioeconomic planning, in a statement released on Tuesday.
According to the PSA revisions, the 12th RFINL symbolizes the full liberalization of foreign ownership for telecommunications, domestic shipping, railways and subways, and air transportation.
The updated list takes into account RTLA revisions that mandate non-luxury international merchants to maintain a standard minimum paid-up capital of USD500,000 (PHP25 million), ranging from USD2.5 to 7.5 million.
It also takes into account the FIA amendments, which permit non-Philippine nationals to have a lower minimum paid-up capital of $100,000 if their business uses advanced technology as determined by the Department of Science and Technology, and is recognized as a startup by the lead host agencies under the Innovative Startup Act, or employs at least 15 Filipino workers.
In the future, Chua continued, “we also want to liberalize more sectors like renewable and non-depletable energy sources like wind, tidal, and solar to assist address the impending power issue and worries about climate change.”
You can get a copy of EO No. 175 in the Official Gazette.