THE Senate and the House of Representatives on Tuesday separately ratified the bicameral committee report on the bill amending the Foreign Investment Act of 1991.
The bill, which seeks to further open up the economy, is one of the priority liberalization measures of the Duterte administration.
The House first ratified the bicameral report earlier in the day. Sen. Imee Marcos then read it aloud in the Senate, where it was unanimously adopted. Once ratified, the bill will be immediately transmitted to the President for signature.
Among the salient features of the bill is the creation of the Inter-Agency Investment Promotions Coordination Committee (IIPCC), the body that will integrate all promotion and facilitation efforts to encourage foreign investments in the country.
Under the bill, the Department of Trade and Industry (DTI) shall act as the IIPCC lead agency.
The measure said the IIPCC shall be composed of DTI, Department of Finance, Board of Investments, Philippine Economic Zone Authority, Department of Foreign Affairs, National Economic and Development Authority, Department of Information and Communications Technology, Commission on Higher Education, Technical Education and Skills Development Authority.
The measure also mandates the IIPCC to establish both a medium- and long-term foreign investment promotion and marketing plan.
As part of the drive to liberalize and attract more investors, the bill reduces the number of direct hires that foreign firms are required to have, from 50 to just 15 workers. Then a minimum paid-in capital of US$100,000 shall be allowed to non-Philippine nationals.
Registered foreign enterprises employing foreign nationals and enjoying fiscal incentives are mandated to implement an understudy or skills development program to ensure the transfer of technology or skills to Filipinos. Compliance with this requirement shall be regularly monitored by the Department of Labor and Employment.
The alien firms are also allowed by the measure to set up, and have 100-percent ownership, of small and medium enterprises as long as their products and services do not fall within Lists A and B of the Foreign Investment Negative List provided under this proposal.