Government eyes reforms to open sectors to foreign investors

MANILA, Philippines — President Duterte is expected to give marching orders to state agencies to push for legislative reforms that would further open up some sectors to foreign investors, the National Economic and Development Authority (NEDA) said.

In an interview last Friday, NEDA Undersecretary Rosemarie Edillon said the executive order to be signed by Duterte on foreign restrictions would have two parts – the foreign investment negative list (FINL) and the reform agenda for sectors that would require legislative amendments.

“We’re coming up with a negative list. In addition, an EO that is essentially an agenda for reform. It gives the marching orders for all government agencies to work towards opening up some sectors that will require legislation,” Edillon said.

Amendments to the FINL are made once every two years, promulgated through executive orders from the President. It was last updated in 2015.

The FINL is undergoing revisions. The latest draft is expected to be taken up during the next meeting of the NEDA Board.

The negative list determines areas or sectors where foreign participation is prohibited or limited. Several prohibitions on foreign ownership need legislative action and cannot be lifted administratively.

According to Edillon, the EO will direct concerned government agencies to conduct consultations and submit to Congress draft bills that support the liberalization of some industries to foreign investors.

“We have a list of sectors; these are the game changers. We have to open this up, this is where we lack the technology and therefore, we need the infusion of new technology. They (agencies) need to work on those,” she said.

Edillon said if President Duterte signs the EO, it would send a strong signal to state agencies that these agendas are priority for the President and the government.

Earlier, NEDA Secretary Ernesto Pernia said the government is pushing for the “highest possible or approvable easing of foreign control in industries, such as retail, trade, practice of professions, public utilities and contractors.

Pernia also said steps are being taken to ease restrictions on foreign contractors and allow them to fully participate in big-ticket infrastructure projects under the government’s Build Build Build program.

The economic planning chief is also intent on lifting restrictions on highly-skilled academic workers to improve the competitiveness of local universities.