President Duterte Inks Law Amending Public Service Act

On Monday, President Rodrigo Duterte signed Republic Act 11659 which amended the 85-year-old Public Service Act. This entails allowing full foreign ownership in various sectors including telecommunications, railways, subways, and airlines, while a 40% cap is set for public utilities such as electricity distribution and transmission as well as water pipeline distribution systems, among others.

This law was signed in an effort to generate more jobs, improve basic services, and allow the exchange of skills and technology with foreign partners, according to the President. “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.”

“Indeed, the enactment of this amended law, as well as the amended Foreign Investments Act, shall help stimulate the economy, especially for local businesses,” added Duterte. Senator Grace Poe, who sponsored the bill, noted that “by easing foreign equity restrictions in key industries, the law will spur critical investments to fast-track inclusive recovery and development that will leave no Filipino behind.”

“As main author and sponsor of the measure, I look forward to finally having an enabling environment that provides better and more affordable services, creates more jobs, and ultimately improves the quality of life of every Filipino,” Poe expressed. She further emphasized, however, that their “vigilance is crucial in ensuring that the safeguards we placed in the law remain sacrosanct.” This includes “giving authority to the president to suspend or prohibit any proposed merger or acquisition in the interest of national security.”

“After 85 years, we’ve accomplished the most crucial task of amending the antiquated law,” asserted Poe. “Henceforth, our agencies must be equally determined to allow our people to truly benefit from it.” Joey Salceda, House Ways and Means Committee Chairman and a sponsor of the bill in the lower house, projects that the PSA amendments could drive a ₱299 billion rise in Foreign Direct Investments over the next five years.

Sources: CNN PH, Inquirer