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After several months of delay, Malacañang finally released the latest foreign investment negative list (FINL), giving clarity to the foreign currency.
The 11th FINL, which was issued on Wednesday, drew a mixed reaction from foreign and local business groups interviewed by the Inquirer.
The FINL, which is reviewed every two years, lists down to which foreign investors have limited participation. The 10th FINL was issued under the Aquino Administration in 2015.
The FINL, however, could only do so much, given that it could not change a few foreign countries.
"Overall, it falls short of the 'aggressive' changes pursued by Neda (National Economic Development Authority)," said Guenter Taus, president of the European Chamber of Commerce of the Philippines.
He said the latest negative list had only modest gains, such as the liberalization in insurance and the expansion of practice of professions.
John Forbes, senior adviser of the American Chamber of Commerce of the Philippines, had a different opinion.
"The new FINL reflects the first time any administration has seriously sought to shorten the list. Appearances can be deceptive because the new document, but he said.
What kind of business can we have at 100-percent foreign participation?
In accordance with the above, the following are the following topics: companies, financing companies, investment companies and investment houses, and more.
The list, as released under the Executive Order No. 65, also increased to 40 percent of the participation of foreigners in the construction and repair of private and private radio communications networks from 25 percent and 20 percent, respectively, previously.
Barrier to entry in the local retail market is still the same, a "victory" for small local players, despite an initial plan by economic managers to do so.
Prior to the release of the FINL, Socioeconomic Planning Secretary Ernesto Pernia said that the government was planning to lower the capital-size requirement for $ 200,000 from $ 2.5 million at present.
Trade and Industry Secretary Ramon Lopez, who said that it was not included in the FINL because it would require amending the law.
Nevertheless, Roberto Claudio, vice chair of the Philippine Retailers Association, called this "victory for the small Filipino retailers."
Pernia, for his part, also said that restrictive laws needed to be amended. Nevertheless, he said that the latest FINL would help make the country more competitive.
However, these measures are still considered "marginal improvements in our efforts to attract foreign direct investment (FDI)."
Under the new FINL, President Duterte foreign foreign foreign foreign foreign foreign foreign foreign in in in in in in in in in in in in in in in in in in in in in in in in in He also updated the list of professions in the Philippines.
The new list keeps the 40 percent foreign equity cap on public utilities but adds a new exception that covers "power generation and the supply of electricity to the contestable market." -WITH A REPORT FROM LEILA B. SALAVERRIA
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