Philippine telcos, airlines, shipping now open to full foreign ownership

The American Chamber of Commerce of the Philippines says the law allowing the full foreign ownership of local industries, like airlines, telecommunications, and tollways, will lead to more investments and jobs. - Philippine Daily Inquirer

MANILA (Philippine Daily Inquirer/Asia News Network): Telecommunications, airlines, expressways and tollways, railways, and shipping in the country will now be open to full foreign ownership after President Rodrigo Duterte on Monday signed into law Republic Act No. 11659 amending the 85-year-old Public Service Act (PSA).

The amendment excluded these economic sectors from the definition of public utility in the PSA and are thus no longer subject to the 40-per cent foreign ownership cap on public utilities under the 1987 Constitution.

The amended PSA limits public utilities to the distribution and transmission of electricity, petroleum and petroleum products pipeline transmission systems, water pipeline distribution and wastewater pipeline systems, seaports, and public utility vehicles.

The president thanked Congress for approving the measure that he said would help lead the country toward economic recovery amid the pandemic.

“I believe that through this law, the easing of foreign equity restrictions, we will attract more global investors, modernize several sectors of public service, and improve the delivery of essential services,