The Department of Trade and Industry (DTI) on Monday said it will fully support a proposal in Congress to amend the Constitution to ease restrictions on economic sectors that are still limiting foreign
participation.
“Such a move will make our country more competitive in attracting foreign investments needed for creating high-quality jobs for our people,” said Trade Secretary Alfredo Pascual.
House Speaker Martin Romualdez announced the proposal during an economic briefing on Monday,
By easing restrictions on foreign ownership, the Philippines can become a more attractive destination for international investors. This can lead to an influx of capital, which can be used to invest in infrastructure, technology, and job creation, the DTI noted in a
statement.
Bills that pushed for ease of doing business, as well as the lifting of restrictions, include the Public Service Act (PSA), the Retail Trade Liberalization Act amendments signed into law last year, and the amendments to the Foreign Investments Act that was ratified by
Congress also in 2022.
The DTI is optimistic that foreign direct investments (FDIs) generated by the country’s investment promotion agencies (IPAs) will match, if
not surpass the record-high FDI of $10.5 billion in 2021.
Pascual said the country is on track to attract P1.5 trillion investments in 2023.
Among the sectors attracting big investments is the renewable energy sector, particularly solar and wind energy projects. There was an influx of investments in renewable energy projects when the restrictions on foreign ownership were lifted, the BOI explained.
Pascual also expressed keen optimism on the Chinese appetite to invest in the Philippines adding that the Philippines is quite eager for a follow-through on the committed investments in integrated nickel ore
processing that will add value to Philippine nickel production, instead of shipping them overseas as plain nickel ore.
He added the Philippines is also keen on Chinese enterprise companies that are diversifying their locations and the DTI will try to patch some of them to preferred locations in the Philippines.
The Philippines is also seeking similar cooperation with Australians in terms of adding value to Philippine minerals, as well as initiatives on renewable energy projects, Pascual added.
With the US, the Philippines is looking to further collaborate on electronics, electric vehicles, logistics, and in several projects from various US sectors and industries.
The DTI is keen on encouraging the expansion of existing US companies in the Philippines particularly the “hyperscalers,” and to assist US
companies in relocating to the Philippines.