Philippine President Rodrigo Duterte has approved a law allowing foreign investment in additional business sectors, his office said on Friday, in a bid to spice up jobs and economic growth in Southeast Asia.
The act, which changes thirty-year-old foreign investment regulations, allows for the primary time international players to determine and own small and medium-sized enterprises and own 100% of shares in firms from sectors through which they might have already got operated.
Previously, foreign investors could only put money into small businesses in the event that they had a minimum of 50 Filipino employees. “Foreign investment in enterprises that significantly enhance the living and employment opportunities of Filipinos should be encouraged,” in line with the brand new law, which was released to the media.
The law halves the minimum capital required to begin an organization to $100,000, provided foreign investors hire a minimum of 15 local staff and introduce advanced technology.
China’s promised billions in infrastructure have yet to reach within the Philippines
China’s promised billions in infrastructure have yet to reach within the Philippines
The Philippines has long struggled to draw foreign money as a result of bureaucracy, poor infrastructure and political uncertainty, causing it to lose business to neighboring countries that provide higher tax breaks and lower operating costs.
However, the federal government has recently made efforts to buck this trend. Last 12 months, Duterte lowered the minimum capital requirement for foreign retailers who need to arrange shop within the Philippines.
Another bill that may allow full foreign ownership of Philippine public services corresponding to telecommunications, airlines and domestic shipping firms is awaiting Duterte’s approval.
In 2021, it was revealed that Duterte was still scheduled to implement many “Build, Build, Build” infrastructure projects that he claimed had China’s support. Much of the Chinese funding appeared to have didn’t materialize, with some critics suggesting that the Philippine leader had exaggerated support for his projects.
He claimed China would lend him 83 billion pesos ($1.64 billion) to construct the primary phase of a railway on the island of Mindanao – to meet pre-election guarantees – but that quantity has yet to materialize.
Additional reporting via SCMP
