Metro Manila (CNN Philippines, March 22) — President Rodrigo Duterte has signed the law amending the 85-year-old Public Service Act, allowing full foreign ownership in various sectors.
Republic Act 11659 allows 100 foreign ownership in telecommunications, railways, subways and airlines. It also retains the 40 percent cap for public utilities such as the distribution and transmission of electricity, petroleum products, pipeline transmission systems, water pipeline distribution systems, wastewater pipeline systems, seaports, and public utility vehicles.
During the ceremonial signing of R.A. 11659 on Monday, Duterte said the law is expected to generate more jobs, improve basic services and allow exchange of skills and technology with the country’s foreign partners.
“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 said.
“Indeed, the enactment of this amended law, as well as the amended Foreign Investments Act, shall help stimulate the economy, especially for local businesses,” he added.
Duterte also thanked Congress for the timely ratification of the amendments, which is among his administration’s legislative priorities.
“By easing foreign equity restrictions in key industries, the law will spur critical investments to fast-track inclusive recovery and development that will leave no Filipino behind,” said Senator Grace Poe, main author and sponsor of the measure.
House Ways and Means Committee Chairman Joey Salceda, sponsor of the measure in the lower house, has estimated that Foreign Direct Investments are expected to increase by ₱299 billion over the next five years following PSA amendments
