Neda: PH to allow up to 100% foreign ownership in internet business

The Philippines will allow up to 100 percent foreign ownership in internet businesses as soon as President Rodrigo Duterte signs the proposed 11th Foreign Investment Negative List, the country’s chief economist said Tuesday.

During the Senate finance committee’s hearing on the proposed 2019 budget of the state planning agency National Economic and Development Authority (Neda), Socioeconomic Planning Secretary Ernesto Pernia said that based on feedback from the Palace Tuesday morning, the draft 11th FINL is “now up for signature” as it was already “under full review.”

Pernia, who is also Neda chief, said the proposed 11th FINL will “exclude internet business from mass media.”

Committee chair Sen. Loren Legarda as well as Sen. Risa Hontiveros noted that mass media is considered as public utility, hence restricted from foreign ownership under the Constitution.

But since the crafting of the Charter in 1987, mass media is no longer restricted to print and broadcast, the senators noted.

Every two years, the government releases the FINL, which lists down sectors where foreign investors have only limited participation.

The 10th FINL was issued by former President Benigno Aquino III in 2015 under EO No. 184, which had practically kept intact the list of activities and sectors restricted to foreign equity and participation as provided for in the ninth FINL.

The 11th FINL, contained in a draft executive order submitted to the Office of the President four months ago, reportedly removed restrictions in the following sectors: private recruitment for local and overseas employment; practice of some professions; contracts for the construction and repair of locally funded public works projects; culture, production, milling, processing and trading (except retailing) of rice and corn and their by-products; teaching in the higher education levels; as well as retail trade.  /muf