MANILA, Philippines — Senate Minority Leader Franklin Drilon has filed twin measures seeking to amend the 83-year-old Public Service Law and the Retail Trade Liberalization Act of 2000, with the end view of attracting foreign investments and improving the quality of consumer goods and services in the country.
He said he filed the measures as part of his efforts to pass legislation that can foster economic growth as the restrictive requirements of both laws impede foreign investments in the country
Drilon also urged the Legislative Executive Development Advisory Council to include in the common legislative agenda of the 18th Congress the proposed amendments to the two laws “to help stimulate the economy, promote competition in business and generate more jobs.”
The senator expressed optimism that the 18th Congress, which opens on July 22, will prioritize the passage of the measures.
Senate Bill 13 proposes to limit the definition of public utility, while opening up other public services to the market.
Drilon explained that the proposed amendments to the Public Service Law, which was enacted in 1936, will provide a clear definition of public utilities, as he pointed out how the interchangeable use of “public utility” and “public service” has barred foreign entry into the market.
“Congress’ failure to amend the law has effectively resulted in holding the Filipino hostage to poor and inadequate services, such as inefficient public transportation, slow yet expensive telecommunication and internet services, unreliable power and water supply, among others,” Drilon said.
“Opening up these public services to competition will provide our people with better choices and compel the current players to shape up,” he said.
Meanwhile, Senate Bill 14 seeks to further relax foreign restrictions by removing investment categories and setting an across the board minimum paid up capital investment equivalent of $200,000 in pesos.
Under the current Retail Trade Liberalization Act, enterprises with a paid-up capital below $2.5 million are reserved exclusively for Filipino citizens and corporations wholly owned by Filipino citizens.
The measure requires reciprocity wherein only nationals or entities from countries allowing the entry of Filipino retailers shall be allowed to engage in retail trade in the Philippines.
The bill also promotes locally manufactured products as it mandates at least 10 percent of the aggregate cost of stock inventory of foreign retailers be made in the Philippines.
“These proposed amendments will no doubt result in a greater variety of products, more choices of goods for consumers, inflow of new technology and the employment of more Filipinos,” Drilon said.