Last Monday, Philippine President Rodrigo Duterte has signed a new law that would amend the 85-year-old Commonwealth Act No. 146 also known as the Public Service Act.
This means that the restrictions have now been toned-down on foreigners who want to completely own a business in the Philippines.
Particularly, the law would allow full foreign ownership of businesses in industries that appear to be needing a lot of improvements to benefit the people: telecommunications, railways, and airlines.
Still, businesses from select sectors will still be restricted to full foreign ownership. Those industries are electricity, water, public utility vehicles, seaports, and petroleum pipelines.
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In a statement, President Duterte said that the new law will support the Philippines in “leading the path towards economic recovery amidst the COVID-19 pandemic.”
“I believe that through this law, the easing out of foreign equity restrictions will attract more global investors, modernize several sectors of public service and improve the delivery of essential services,” he added.
The president said that the amended law, as well as the amended Foreign Investment Act, “shall help stimulate the economy, especially for local businesses,”