Amended Foreign Investment Law

Summary

The transcript discusses Republic Act 11659 passed in March 2022, which addresses foreign ownership in the Philippines. It highlights changes to the 1987 constitution, particularly regarding foreign investment in public utilities, limiting foreign ownership to 40% under Article 12 Section 11. The video outlines restrictions on foreign investment in key sectors like mass media and mining due to national security concerns. It also mentions the public's reactions, including perspectives from politicians and labor leaders, on whether increased foreign ownership will benefit the country's economy and infrastructure.

Takeaways

• 📜 Republic Act 11659 was enacted in March 2022, discussing foreign ownership.
• 🌍 The law impacts foreign ownership, especially in public utilities, allowing up to 100% foreign investment.
• ⚖️ Article 12, Section 11 of the 1987 Constitution limits foreign ownership to 40% in public utilities.
• 🛑 Certain industries like mass media, small-scale mining, and security agencies remain off-limits to foreign investors.
• 🏛️ There is a distinction between public utilities and public services, influencing foreign investment policies.
• 📉 National security concerns arise from foreign ownership, particularly with countries that may have ulterior motives.
• 🔍 There are ongoing discussions about ensuring that foreign investors are properly scrutinized for the country's benefit.
• 🇵🇭 Filipino-first policies and concerns about foreign influence on critical infrastructure are prevalent in political discussions.
• 🛠️ Some politicians advocate for protecting local industries and resources from full foreign ownership.
• 📊 The new law is part of the administration's efforts to increase investments and economic output by allowing more foreign involvement in key sectors.

Q & A

What is Republic Act 11659 and when was it passed?

Republic Act 11659 was passed in March 2022 and focuses on allowing 100% foreign ownership in certain industries, especially public services.

What does Article 12, Section 11 of the 1987 Philippine Constitution state about foreign ownership?

Article 12, Section 11 of the 1987 Philippine Constitution limits foreign ownership in public utilities to 40%.

What is the Foreign Investment Negative List in the Philippines?

The Foreign Investment Negative List outlines industries in the Philippines where foreign ownership is either prohibited or restricted, such as mass media, small-scale mining, and security or law enforcement agencies.

How does Republic Act 11659 impact public utilities in the Philippines?

Republic Act 11659 allows foreign investors to fully own public services, but public utilities remain restricted, with foreign ownership capped at 40%.

What concerns are raised regarding foreign ownership of critical infrastructure?

There are concerns that foreign ownership of critical infrastructure may pose national security risks if investors from certain countries use their capital to gain control or influence over these sectors.

What is the difference between public utilities and public services in the context of Republic Act 11659?

Public utilities refer to essential services such as water and electricity, which are restricted to 40% foreign ownership, while public services include broader categories like telecommunications and transportation, where 100% foreign ownership is now allowed.

Why is national security a concern in the discussion about foreign ownership in the Philippines?

National security is a concern because foreign investors from certain countries might have ulterior motives, potentially using their investments to gain control over critical infrastructure or influence domestic affairs.

How does Republic Act 11659 affect the Filipino economy?

Republic Act 11659 is expected to attract more foreign investment, potentially boosting the economy by opening up sectors like public services to 100% foreign ownership, although concerns about national security and the impact on local industries remain.

What are the views of different political figures on foreign ownership in the Philippines?

Political figures like presidential candidate Isko Moreno and labor leader Leody De Guzman have expressed concerns about foreign ownership, advocating for a 'Filipino first' approach to protect national resources and local workers.

How does Republic Act 11659 align with the Philippine government's broader economic goals?

Republic Act 11659 aligns with the government's goal of increasing foreign investment and modernizing infrastructure, but it aims to balance this with safeguarding national security and protecting strategic industries.