The National Economic and Development Authority (NEDA) has released the official implementing rules and regulations (IRR) of the amended Public Service Act (RA11659).
Arsenio Balisacan, NEDA secretary, said with the IRR in place, this landmark reform will further improve the country’s position as an ideal investment hub, which will help enhance employment opportunities and allow more Filipinos to benefit from more improved goods and services.
NEDA said allowing full foreign ownership of businesses in select industries such as airports, railways, expressways, and telecommunications under RA11659 takes effect on April 4, 2023, bypassing constitutional constraint of 40 percent foreign ownership.
Public service utilities such as electricity transmission and distribution, water and wastewater pipeline distribution system including sewerage, petroleum and petroleum products pipeline transmission systems, seaports, and public utility vehicles remain subject to the 60-40 percent foreign equity limitation, Balisacan said.
NEDA said the amendments also provide safeguard provisions to protect the country against national security concerns that may arise through any proposed merger or acquisition, or any investment in a public service.
“Together with complementary policies and measures such as the amendments to the Foreign Investments Act, the Retail Trade Liberalization Act , the passage of the Corporate Recovery and Tax Incentives for Enterprises Act, the Regional Comprehensive Economic Partnership ratification, amendments to the IRR of the Build-Operate-Transfer Law, approval of the NEDA Joint Venture Guidelines, as well as the Marcos administration’s continuous efforts to raise investor interest in the country, we are confident that the Philippines will be able to attract much-needed capital and technology, sustain its high-growth trajectory, and generate high-quality jobs enabling rapid poverty reduction in the next six years,” Balisacan said.
