Local business groups and foreign chambers of commerce in the Philippines have urged lawmakers and the administration to ensure amendments affecting public services that form critical infrastructure do not endanger national security.
The groups said safeguards should be incorporated in the law and should be actively enforced.
The groups lauded the approval on second reading of House Bill 78, the bill amending the Public Services Act, which lifts restrictions to foreign investment.
“We commend the House committee for including a provision for reciprocity to give our businesses the same opportunity to invest in public services of countries that invest in ours,” they said, as they urged the Senate to pass their version.
The groups said the new law, when enacted, finally will provide a concise definition of public utilities, institute a rate-setting methodology that is fair to both investors and consumers, and facilitate greater competition in the public services sector.
“This legislation is long overdue and especially timely as it should help the Philippines recover from declining foreign direct investment (FDI),” they said.
The bill strongly considers the protection of national security by adopting the same framework and measures for scrutinizing FDI for security risks used by countries such the United States and Australia and the European Union.
The business groups said an increase in FDI will create more business opportunities and jobs to improve the quality of life of Filipinos.
“By enabling the entry of more operators, the bill will improve the quality of public services, such as transportation and communication. These services are crucial inputs in domestic micro, small and medium enterprises,” they said.
