President Rodrigo Duterte has signed the law amending the Public Service Act paving the way for 100% foreign ownership of telecommunications, railways among others.
The new law reclassifies telecommunications, railways, airlines, and logistical facilities as public services rather than public utilities.
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Under the 1987 Constitution, foreigners can only own 40% of services considered as public utilities.
“I believe that through this law, the easing out of foreign equity restrictions will attract more global investors, modernize several sectors of public service and improve the delivery of essential services,” Duterte said in a speech.
“Indeed, the enactment of this amended law, as well as the amended Foreign Investments Act, will help stimulate the economy, especially for local businesses,” he added.
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“It is also expected to generate more jobs for Filipinos, improve basic services for Filipino consumers and allow for the exchange of skills and technology with the country’s foreign partners,” the president added.
Foreign ownership on the distribution and transmission of electricity; petroleum and petroleum products, pipeline transmission systems; water pipeline distribution systems and wastewater pipeline systems, including sewerage pipeline systems; seaports; and public utility vehicles is still limited.
