MANILA, Philippines — Lawmakers should act first on the legislation of the P1.57-trillion stimulus package over bills that will lift foreign ownership restrictions to improve the government’s response to the resurgence in COVID-19 cases, a research group said.
According to IBON Foundation, legislators must focus on passing a measure that will inject cash in the most vulnerable sectors at a time some areas were reverted to lockdown due to a recent spike in COVID-19 infections.
“Containing the pandemic, helping the sick and helping millions of Filipinos badly affected by job losses and falling income need immediate attention,” IBON said in a statement.
It has called on Congress to set aside for the meantime deliberations on the amendments to the 85-year old Public Services Act (PSA), Foreign Investments Act (FIA) of 1991 and the Retail Trade Liberalization Act (RTLA) of 2000. These measures were certified as urgent by President Duterte last week.
Revising the PSA will define the coverage of public utilities, which foreigners are barred to own under the Constitution. As such, foreign investors can soon operate in industries that fall outside the list, such as telecommunications.
Further, amending the FIA will remove the practice of professions from the negative list to attract workers and multinationals overseas to move here, while updating the RTLA will trim the capital requirements for foreign retailers to $200,000, from $2.5 million.
For IBON, government attention must be diverted to the passage of either House Bill (HB) 7620 filed by the Makabayan bloc, or HB 8628 sponsored by House Speaker Lord Allan Velasco and Marikina Rep. Stella Luz Quimbo.
HB 7620 allocates P1.57 trillion for programs that will intensify the testing, tracing and treatment efforts of the government and extend cash assistance to most affected sectors.
Meanwhile, HB 8628, or the Bayanihan to Arise as One Act, directs P420 billion in subsidies to be distributed to small businesses, poor families and farm producers. It also provides additional funding to the cash-for-work program dedicated for the unemployed.
About 4.9 million poor families in Metro Manila and its nearby provinces are exposed to income losses as they lack the savings to survive interruptions in livelihood, IBON reported. It added as many as 189,000 small enterprises nationwide may have closed for good as of February.
Both HB 7620 and HB 8628 are awaiting deliberations with the Committee on Economic Affairs.
IBON pointed out the passage of a third stimulus package will accelerate the country’s recovery from the pandemic while the approval of liberalization measures will only benefit the investment interests of foreign firms.