By Raymond Carl Dela Cruz | Philippine News Agency
MANILA – The new law allowing 100% foreign ownership of some public services includes provisions to protect the country from “security risks,” an official of the Department of Information and Communications Technology (DICT) said on Thursday (March 24).
In a Laging Handa briefing, DICT Officer-In-Charge Secretary Emmanuel “Manny” Caintic said the recently signed Republic Act (RA) 11659 or Public Service Act includes provisions such as allowing the President to veto any investments related to a state-owned enterprise.
“Kinikilala ng batas mismo ang risk na ito, iyong security risk ng pagkaroon ng 100% ownership kung kaya may mga probisyon na nagsisiguradong talagang ligtas tayo sa mga ito (The law recognizes the risks related to allowing 100 percent foreign ownership that’s why we have provisions ensuring security),” Caintic said.
Other provisions, he said, include the requirement of an International Organization for Standardization (ISO) and cyber-security audits for enterprises entering the country and having a reciprocity clause that limits foreign nationals to 50% ownership of capital in critical infrastructures unless they are from a country with a mutual reciprocity agreement.
He said the law also mandates an “independent evaluation” to monitor and ensure the quality of services of companies under its scope.
Under the law, Caintic said the Philippines will become a “destination” for foreign investments.
“Para mas mapadali ang pagpasok ng mga investments mula sa iba’t-ibang bansa, niluwagan na ang mga foreign equity restrictions (To ease the entry of investments from various countries, we have reduced foreign equity restrictions),” Caintic said.
RA 11659, he said, works in conjunction with the amended Retail Trade Liberalization Act that lowers the paid-up capital requirement for foreign retail enterprises.
“Bukod sa dagdag trabaho, pagtaas ng kalidad ng serbisyo at pagbaba ng presyo sa mga produkto, magkakaroon tayo ng mas madaling pagpapalitan ng mga teknolohiya at kaalaman ng mga magiging kasosyo ng Pilipinas (Aside from more jobs, improved quality of service, and lower prices, we will have the opportunity to more easily exchange technology and knowledge with the country’s partners),” Caintic said.
President Rodrigo Roa Duterte signed the Public Service Act on March 21.
Under the amended PSA, the telecommunications, railways, expressways, airports, and shipping sectors are considered public services that may have up to 100% foreign ownership. (PNA)
-ag
