Foreign Investments Act amendment signed into law
President Rodrigo Duterte on Wednesday signed into law Republic Act 11647 which seeks to amend the Foreign Investments Act to ease foreign equity restrictions in some sectors and further open up the Philippine economy.
Under the new version of the law, foreigners exporters can now have 100% ownership in areas outside the foreign investment negative list and shell out capital to hold as much as 100% equity in domestic enterprises.
Direct hires are also eased from 50 to at least 15 Filipino employees, allowing the small and medium-sized enterprises (SMEs) to invest more in the local market.
RA 11647 requires the creation of the Inter-Agency Investment Promotion Coordination Committee (IIPCC) which will facilitate efforts to attract more foreign investments in the country. The Department of Trade and Industry will lead the IIPCC.
The IIPCC will also be given a ₱50 million budget and will be required to create a Foreign Investment Promotion and Marketing Plan that will focus on the “competitive advantages, natural resources, skill and educational development, traditional linkages, and international market potential” of the local economy.
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