JFC renews call for change to Public Service Act

MANILA, Philippines — Foreign business groups in the country have renewed their call to Congress for the passage of amendments to the Public Service Act (PSA), emphasizing the importance of the measure inattracting more foreign direct investments.

In a statement yesterday, the Joint Foreign Chambers (JFC) composed of the American, Australian-New Zealand, Canadian, European, Japanese and South Korean chambers in the country and the Philippine Association of Multinational Companies Regional Headquarters Inc. said while several bills on investment liberalization certified as urgent have made progress in the 18th Congress such as the amendments to the Retail Trade Liberalization (RTL) Act, which is up for the President’s approval, and the Foreign Investments Act (FIA), which was recently ratified and would be sent to the President soon, the proposed amendments to the PSA remain pending in the Senate, after being approved by the House of Representatives in March last year.

With less than 30 session days left before the end of the 18th Congress, JFC emphasized the importance of getting the reform passed.

“Not to approve this bill will deny the recovering economy many billions of US dollars,” the JFC said.

For the JFC, the PSA is the most important and game-changing reform.

The proposed amendments to the PSA seek to limit the definition of public utilities to natural monopolies and make a distinction from public services.

Under the Constitution, public utilities should be 60 percent Filipino-owned.

“By opening up key economic sectors, particularly telecommunications and transportation, and limiting the definition of public utilities largely to natural monopolies, the PSA amendments bill could maximize opportunities to attract new foreign investment that create jobs, build infrastructure, and support economic recovery and growth as the country recovers from the effects of the pandemic,” the JFC said.

During the Arangkada Forum held earlier this month, the JFC also pushed for the liberalization of restrictions on foreign ownership of three categories of renewable energy: solar, water and wind. The JFC noted that current restrictions in government regulations are preventing the Philippines from getting investments that could help transition to cleaner energy.

Earlier, the JFC with over 40  foreign chambers and business groups issued a joint statement to express support for amendments to the PSA, RTL and FIA.

The groups also expressed concern over any additional changes to the PSA amendments bill that will apply the 60-40 rule to any public service not currently classified as a public utility.