The Joint Foreign Chamber of the Philippines (JFC) expects only modest gains from the latest foreign investment negative list (FINL), noting that meaningful change could be done only through Congress.
In a statement on Monday, the JFC welcomed the 11th FINL, the first under the Duterte administration, despite saying that most of its changes from the previous list were “minor.”
The FINL, which is reviewed every two years, lists sectors where foreign investors have limited or no participation. The 10th FINL was issued under the Aquino administration in 2015.
The Duterte administration released the latest FINL on Oct. 31, months later than expected. It allowed for some businesses to now have a 100-percent foreign participation, such as internet businesses.
Despite the efforts of the National Economic Development Authority (Neda), the JFC said the agency could only do so much.
Reforms
“They are not minor for lack of trying by Neda. For the first time, the Neda actively sought with other government agencies to initiate reforms in the FINL through administrative changes. But their output was constrained by the many laws, some over 80 years old, which cannot be changed by the Executive Branch,” the statement read.
The JFC is a coalition of the American, Australian-New Zealand, Canadian, European, Japanese and Korean chambers and Pamuri, the industry group for regional operating headquarters.
Most restrictive
“Meaningful reforms in the FINL require Congress to pass relevant laws, including amendments to the restrictions on foreign ownership in the Philippine Constitution,” the statement added.
The coalition, which represents more than 3,000 member-companies, urged Congress to pass at least four bills in the next few months.
The most important of these, the groups said, were amendments to the Public Service Act and the Telecommunications Act.
The group also cited the need for amendments to the Foreign Investment Act and the Retail Trade Act.
Without reforms in Congress, the country will still be the most restrictive of 67 countries in terms of foreign direct investments, as rated by the Organization for Economic Cooperation and Development, according to JFC.
JFC’s member-companies are engaged in more than $100 billion worth of trade and some $30 billion worth of investments in the Philippines.