MANILA, Philippines - The Philippines is among the 11 countries that have adopted policy measures to ease the entry of foreign investors, according to the United Nations Conference on Trade and Development (UNCTAD).
In a report released yesterday, the UN agency said the Philippines has amended its Rural Bank Act to allow foreign money into the once-protected rural banking sector.
“The Philippines has amended its Rural Bank Act to allow foreign individuals or entities to have equity of up to 60 percent in rural banks in the country. Prior to amendment, foreign banks were allowed to acquire equity in rural banks, but not foreign individuals or foreign entities,†the report pointed out.
However, UNCTAD said it was the only investment policy measure that was implemented to make it easier for foreign capital to enter the Philippine market.
The UNCTAD report said the Philippines was also one of 25 economies that put in place measures to attract foreign direct investments (FDIs) through selective investment liberalization and promotion.
These countries pursued efforts to attract FDIs through improved entry conditions, the treatment of established investors, and investment promotion and facilitation.
The economies that adopted new policy measures relating to the entry of foreign investors relaxed restrictions on foreign ownership or opened up new business opportunities.
“Insofar as new investment restrictions were adopted, they related to various industries, such as mining and maritime auxiliary services,†the report stated.
For example, China launched the China (Shanghai) Pilot Free Trade Zone, introducing various new policy measures in the areas of trade, investment and finance. It opened to foreign investors the sectors of finance, transport, commerce and trade, professional services, cultural services and public services.
In India, regulations were liberalized governing investments in the defense, multi-brand retailing and telecommunications.
Other economies focused on retaining the existing FDIs.