Allows 100 per cent foreign ownership of public services
15 Dec 2021
On 15 December 2021, the Philippines Senate passed Senate Bill (SB) 2094, which amends the Public Service Act by enabling the 100 percent foreign ownership of public services, such as telecommunications, airlines, shipping, and railways.
SB 2094 makes a clear distinction between the definition of public services and public utilities since under the 1987 Constitution, only firms that are at least 60 per cent owned by Filipinos are given the authorization, certificate, and franchise to operate as a public utility.
SB 2094 narrows public utilities to just the following: Electricity distribution; Electricity transmission; Airports; Seaports; Water pipeline distribution and sewerage; Tollways and expressways; and Public utility vehicles.
This means that there will be no restriction on foreign ownership for industrial undertakings not classified as public utilities. However, to protect national security, SB 2094 contains safeguards that prohibit foreign state-owned enterprises from owning capital in a public service classified as critical infrastructure. The government’s National Security Council will be undertaking a review of such foreign investments.
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Type:
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Entry and establishment (Ownership and control)
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Industry:
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Manufacturing (Manufacture of transport equipment, Other manufacturing)
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Services (Telecommunications)
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