THIS refers to Mr. Rigoberto Tiglao’s recent article, “NEDA chief Pernia should read the Constitution,” published July 17, 2012, in the Manila Times.
Please be assured that the Secretary knows about the relevant constitutional provisions and other laws, rules, and regulations affecting the country’s competitiveness and quality of services.
The Secretary and the rest of the economic team are exploring ways to address inefficiencies in the country’s telecommunications sector, among others. As part of the executive, they are resolved to act administratively on what could be appropriately remedied. This includes a review of the Foreign Investment Negative List (FINL).
The NEDA is currently consolidating inputs from different agencies. The draft will undergo legal review before it is submitted to the NEDA board for consideration and approval.
Meanwhile, the possibility of raising the maximum ownership that could be held by foreign firms from 40 percent to 70 percent was mentioned by the President during the campaign and after assuming office, as explained by the Secretary. It would necessarily require amendments to existing legislation or new legislation with the support of Congress.
Identified in the legislative agenda in Chapter 19 of the Philippine Development Plan 2017-2022 is the amendment of the Public Service Act to redefine what constitutes “public utilities.” A redefinition of which will allow the government to adjust the FINL.
Ultimately, the goal of increasing foreign ownership is to attract more investors who will stimulate competition, thereby improving public services.
Should you have other concerns, you may get in touch with our Public Relations Division through email@example.com or (02) 6313282. Thank you.
Nerissa T. Esguerra
Development Information Staff
National Economic and Development Authority