Duterte eases foreign ownership restrictions

MANILA, Philippines — President Duterte has signed Republic Act 11647, easing restrictions and requirements on foreign ownership in businesses in the country.

RA 11647, signed by the President on March 2, amended RA 7042 or the Foreign Investments Act of 1991.

The new law aims to attract foreign investments “that significantly expand livelihood and employment opportunities for Filipinos; enhance economic value of agricultural products; promote the welfare of Filipino consumers; expand the scope, quality and volume of exports and their access to foreign markets; and/or transfer relevant technologies in agriculture, industry and support services.”

It allows qualified non-Philippine nationals to do business or invest in domestic enterprises.

Under the law, foreign investors are allowed to set up and have 100 percent ownership of all small and medium-sized enterprises.

The law creates an Inter-Agency Investment Promotion Coordination Committee or IIPCC “to integrate all promotion and facilitation efforts to encourage foreign investments in the country.”

The secretary of the Department of Trade and Industry (DTI) shall serve as the chair of the IIPCC.

The DTI’s Board of Investment is designated as the secretariat of the IIPCC that would implement its policies and resolutions.

The IIPCC shall also develop the Foreign Investment Promotion and Marketing Plan for the medium term of five years and for the long term of 10 years. An online portal shall be created, containing the IIPCC’s procedure, contacts, schedules, among others.