The National Economic and Development Authority (NEDA) expressed hope that important recent laws will attract more investment and create more jobs in the manufacturing sector.
NEDA Deputy Minister for Policy and Planning Rosemary Edillon said at a recent webinar that new laws amending the Retail Liberalization Act (RTLL), the Foreign Investment Act (FIA) and the Public Service Act (PSA) are expected to provide positive impact on the manufacturing sector. .
The amended RTLL, or Republic Act (RA) 11595, was signed into law in December. March 10, 2021, and the Rules and Regulations for its implementation were published on March 9 this year.
The measure lowers the minimum paid-in capital requirement for foreign retailers from 30 million to 25 million pesos, removes the requirement to provide a prequalification certificate to the Philippine Board of Investment, and lowers the investment requirement for every foreign-owned store. company.
Meanwhile, the amended FIA, also known as RA 11647, was signed on March 2, 2022 and aims to encourage and attract foreign investment by allowing international investors to set up and wholly own domestic businesses (including micro and small businesses) in the Philippines.
Edillon noted that the FIA will also help small producers by providing Philippine goods and services with access to shops and markets around the world.
In addition, under the FIA, foreign businesses employing foreign nationals are required to develop an understudy or skills development program that will benefit Filipino workers and this ensures that local workers receive relevant knowledge and skills from their foreign counterparts.
Meanwhile, the amended PSA (RA 11659), which was signed on March 21 last year, will allow up to 100 percent foreigners to own government services in the country. Under it, telecommunications, railways, highways, airports and shipping will be considered public services.
“Even [with] just the threat of a competitor, the quality of some of our utilities has improved over the past year, and we hope that this will continue,” Edillon explained.
She also provided an update on the National Innovation Program, saying that it has just been approved by the National Innovation Council.
“The framework will define a 10-year roadmap for the country to manage innovation in 10 priority sectors to create a smart and innovative society that is inclusive, productive, resilient and sustainable,” she added. ED PAOLO SOLTING