President Duterte signs amended act to allow full foreign ownership on telcos, other sectors

Philippine President Duterte earlier signed the amended law that will allow foreigners to fully own or invest in different sectors.

File photo of a cell tower

100 percent foreign ownership in telcos and more!

In particular, the Republic Act (RA) No. 11659 or "An Act Amending Commonwealth Act No. 146 also known as Public Service Act" will now allow 100 percent foreign ownerships in industries such as telecommunications, railways, expressways, airports, and shipping industries as they will be considered as public services.

This is the outgoing administration's latest attempt to improve those industries and attract foreign investors.

Duterte said that he believes 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.

The President also said that the amended PSA and Foreign Investment Act will help stimulate the economy, especially for local businesses.

Philstar reported that there are still some sectors that are restricted to foreign equity such as public utility vehicles, power, water, seaports, and petroleum pipelines. The 1987 Constitution notes that only corporations that are at least 60 percent owned by Filipinos shall be given the franchise, certificate, and authorization to operate as a public utility.

Back in February, it was reported that the Norwegian telco Telenor, Austria-based Mobiltel, and UK’s Vodafone are interested to enter the local market.

What do you guys think?

Sources: PNA, The Philippine Star