Justice Secretary Menardo Guevarra (File photo) MANILA - The new law amending the Public Service Act (PSA) recently signed by President Rodrigo Duterte now clearly defines which businesses are considered as public utilities that will remain covered by the restrictions on foreign capital enshrined in the Constitution, the Department of Justice (DOJ) said on Wednesday. "The new law now clearly defines what public utilities are: electricity transmission and distribution, petroleum pipeline transmission, water and sewerage pipeline distribution, seaports, and PUVs (public utility vehicles). Their foreign ownership will continue to be limited by the Constitution (maximum of 40 percent of capital). All other public service industries will be liberalized, allowing foreign capital to the extent of 100 percent," DOJ Secretary Menardo Guevarra said in a message to reporters. Under the amended PSA, telecommunications, railways, expressways, airports, and shipping industries will be cons
MANILA - Members of the House of Representatives on Tuesday lauded the enactment of a law amending the 85-year-old Public Service Act (PSA), which could be a game-changer that would open up the Philippine economy to more foreign investors. House Committee on Economic Affairs chair Sharon Garin said the passage of the law will increase the Philippines' foreign direct investments (FDI) by around PHP299 billion over the next five years. Garin said it is also expected to increase the gross domestic product (GDP) growth rate by 0.47 percentage points above the baseline. She said the new Public Service Act, along with the Foreign Investment Act, will be "game changers" designed to boost foreign investments of capital for many ailing businesses amid the coronavirus pandemic. "After decades of meetings, discussions and debate, we now have updated the relevant laws that fit the needs of our country, as we try to move forward after the effects of the pandemic on our economy,&q
President Rodrigo Roa Duterte (File photo) MANILA - President Rodrigo Roa Duterte on Monday signed into law a measure amending the Public Service Act (PSA), allowing up to 100 percent foreign ownership of public services in the country. Republic Act (RA) No. 11659 or "An Act Amending Commonwealth Act No. 146 otherwise known as the Public Service Act" as amended was signed by Duterte in a ceremony at the Rizal Hall, Malacanan Palace in the presence of lawmakers and other officials. Under the amended PSA, the telecommunications, railways, expressways, airports, and shipping industries will be considered public services, allowing up to 100 percent foreign ownership in these sectors. Duterte also led the ceremonial presentation of newly enacted laws namely RA 11647 which amends the Foreign Investments Act; RA 11650, which ensures inclusive education for learners with disabilities; and RA 11648, which increases the age for determining statutory rape from 12 to 16-years-old. In his