Public Service Act amendments

MANILA, Philippines — The new law opening key sectors to greater foreign ownership is seen boosting the country’s full recovery from the impact of the COVID-19 pandemic, according to the Philippine Competition Commission.

PCC chairperson Arsenio Balisacan said the signing of Republic Act 11659 or the amendments to the Public Service Act (PSA) by President Duterte last March 22 allows the country to gain new investment and market opportunities, helping the economy bounce back from the impact of the global health crisis.

“The enactment of these amendments, which encourage investments, promote job growth, and accelerate technology transfer, at this time and after more than 80 years, became more urgent as a post-pandemic response to hasten our economic recovery,” Balisacan said.

The amendments allows full foreign equity in telecommunications, domestic shipping, railways, subways, airlines, airports, expressways, and tollways.

The former socioeconomic planning secretary said there has been a need for robust competition in various sectors to benefit consumers.

“With the proper implementation of the PSA, opening up industries that were once heavily characterized by limited players and equity limitations will improve our public services and enhance the prospects for the Philippines to join the ranks of dynamic and prosperous economies in Asia,” Balisacan said.

The PCC has been supportive of reforms that seek to encourage the entry of new players and increase competition in the market.

This, as more competition would benefit consumers in terms of lower prices, better quality of services, and having more choices.

The Department of Trade and Industry (DTI) and business groups earlier lauded the enactment of the PSA as the measure would entice more investors and help generate employment in the country.

For one, Trade Secretary Ramon Lopez has expects over $60 billion initial investments to enter the country in the telecom, transportation, logistics and railway sectors.

“This is still understated as other leads have not indicated investment amount,” Lopez said.

The DTI chief  said the investments expected in those sectors could even reach over $100 billion in more than two years.