Government lifts foreign restrictions on finance, investment houses

MANILA, Philippines - The 2017 Foreign Investment Negative List (FINL), slated to be approved by the National Economic and Development Authority (NEDA) board next month, will provide for the lifting of foreign restrictions on investment houses and practice of several professions in the country, NEDA officials said.

NEDA Undersecretary for policy and planning Rosemarie Edillon said foreign participation in investment houses and other financial activities were among those that would be removed from the FINL.

“What was removed (from the negative list) for sure were investment houses and financial investors,” she said in a recent interview, noting this is among the investment areas in which foreign investment restriction can be removed administratively as it does not require legislation and is in line with strengthening the country’s financial sector.

“There is no constitutional restriction,” she Edillon. “We have already liberalized the banking sector so other (financial) activities will not be restricted.”

The government, she said, is also considering to lift foreign equity limitations on internet marketing and advertising.

“We are seeking legal opinion in that, actually,” Edillon said.

On education, the easing of foreign restriction on the practice of professions for highly-skilled academic workers such as university professors are being looked at.

Socioeconomic Planning Secretary Ernesto Pernia said high caliber faculty is needed in higher educational institutions especially those specializing in science and technology. Other countries like China, Singapore and Thailand are already allowing this, he said.

Ownership of educational institutions, however, remains an area that needs legislation to be opened up, Edillon said.

“On education, only to the extent of practice of professions. Educational institutions are covered by constitutional restriction that limits foreign ownership to 40 percent,” she said.

Practice of other professions, she said, are still governed by the reciprocity rule that allows foreigners to practice their profession in the Philippines, provided their countries of origin also allow Filipino professionals to practice such professions there.