FINL likely OKd next week

MANILA, Philippines — The 11th Foreign Investment Negative List (FINL), touted as the most liberalized so far, is likely to be approved in the next meeting of the National Economic and Development Authority (NEDA) Board on March 6, Socioeconomic Planning Secretary Ernesto Pernia said.

Among the FINL amendments introduced include allowing 100 percent ownership for foreign funded construction projects while raising to above 40 percent the allowed foreign participation for locally-funded projects.

Another amendment allows foreign academic professionals to practice in the country provided they do not provide instruction in courses that require licensure examinations.

Foreign participation is expected to be eased in eight to 10 industries through the 11th FINL, among which are construction, practice of professions, retail and trade, utilities and education.

Earlier, Pernia said the Malacañang favors the imposition of a 70 percent ownership cap in public utilities like telecommunications and water.

Raising the foreign ownership limit for public utilities, however, would require the amendment of the Public Service Act which prohibits majority ownership by foreign entities in public utilities.

On the practice of professions, NEDA is particularly keen on lifting restrictions on highly-skilled academic workers such as university professors, noting that high caliber faculty is needed in higher educational institutions especially those specializing in science and technology.

The negative list determines investment areas where foreign participation is prohibited or limited. The FINL was last updated in 2015.