HE may be bowing out in June from decades of work in government service, but Minority Leader Franklin Drilon has gotten highest praise from the Duterte administration’s economic team for helping make possible key liberalization reforms with his well-studied critiques and finetuning.
In a letter, the economic managers credited the opposition leader for “outstanding work” in the speedy passage of game-changing economic liberalization laws intended to fast-track the country’s recovery from the Covid-19 pandemic by, among others, enticing foreign direct investments (FDI).
They conveyed their appreciation for Drilon’s key role in crafting the long-awaited reforms, which he did not block but thoroughly vetted, introducing crucial provisions to clarify the intent of the law and provide safeguards: “Thank you for your valuable contributions that led to the passage of the three economic liberalization bills, namely, the Amendments to the Retail Trade Liberalization Act, Amendments to the Foreign Investment Act, and Amendments to the Public Service Act.”
Apart from Finance Secretary Carlos Dominguez III, other signatories included Trade Secretary Ramon M. Lopez, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno, National Economic and Development Authority Secretary Karl Kendrick T. Chua, and Acting Budget Secretary Tina Rose Marie L. Canda.
Even as he is a known opposition stalwart, Minority Leader played a key role in pushing timely passage of economic measures endorsed in the Duterte administration’s legislative agenda, including amendments to the Public Service Act and amendments to the Retail Trade Liberalization Law.
Drilon also stood as principal author and co-sponsor of Republic Act 11659 or the Amendments to the Public Service Act and principal author of Republic Act 11595 or the Amendments to the Retail Trade Liberalization Act.
“I am proud of shepherding the passage of the two economic reform laws. These laws will pave the way for a more vibrant economy, more investments and more jobs for our people,” says Drilon. “It is my view that with these economic laws, the country is in a better position to tackle the economic slump due to the Covid-19 pandemic.”
At the same time, the minority leader clarified that the Amended Public Service Act, which was enacted in 1936, provides a clearer definition of public utilities, pointing out how the interchangeable use of “public utility” and “public service” has effectively barred foreign entry into the market.
He noted that RA 11595 lowers the paid-up capital requirement in retail trade to P25 million from its previous limit of $2.5 million or roughly P125 million, adding that the law also relaxes restrictions in foreign investments by removing investment categories and setting across-the-board minimum paid-up capital investment equivalent to P25 million.
Drilon expects the amendments to the Foreign Investment Act to encourage more foreign investment after loosening the restrictions on foreign entrants, banking on economic managers saying that “passage of these game changing reforms reflect our shared commitment to fast-tracking our recovery from the Covid-19 pandemic and solidifying our economic growth prospects.”
The economic managers also assured senators that “these amendments will bring dynamism to our progressing economy by reeling the constraints that have long hindered the flow of foreign capital into the country.”