Philippines eases foreign investment curbs in bid to boost economy

By Riyaz ul Khaliq

ISTANBUL (AA) – The Philippines has introduced a law to allow foreign investment in more sectors, part of measures to boost a struggling economy hit hard by the pandemic.

President Rodrigo Duterte gave his nod after parliament approved the law that “removes several restrictions on foreign investments,” the president’s office said on Friday.

The new law, an amendment to a three-decade-old legislation, “aims to make the Philippines a more attractive destination for foreign investments, after it has been deemed one of the most restrictive in Southeast Asia and the world,” read a report by news website Rappler.

It allows foreigners to fully own “startups or startup enablers, enterprises involving advanced technology, enterprises where a majority of direct employees are Filipinos and there must be at least 15 such employees,” the report added.

Sectors where only Filipinos can invest have been reduced to just two, including defense-related businesses.

Along with securing foreign capital, the government is banking on the new rules to boost jobs and transfer of skills and technology in industries where the Philippines is lagging behind, the Rappler report said.

The Philippines’ economy contracted by a record 9.5% in 2020 as COVID-19 curbs wrecked the retail and tourism sectors, while a series of natural disasters battered the agricultural sector.

The figure, according to government data, was the worst since records began in 1946 and marked the first time the economy shrunk after a 0.5% contraction in 1998. ​​​​​​​