Cap may go on foreign equity in RP

The country’s chief economist told reporters that the upcoming presidential order will complement the moves to liberalise the foreign investment negative list (FINL), which is also pending the president’s approval.
Pernia, who also heads the state planning agency National Economic and Development Authority, said sectors to be removed from the FINL include the following professions (teaching of foreign professors from foreign universities); public utilities such as telecommunications (except water, sewerage and electricity distribution); and construction, specifically contractors, among others.
Last month, Pernia said mass media and almost every sector except land will be further opened up to foreign equity two years from now through an amendment of the Constitution seen pushing through next year.
Once the government’s plan to liberalise nearly all industries by 2019 happens, foreign direct investment inflows could “easily double”, Pernia had said.
The Neda chief had said economic managers were asking the president to certify as urgent the proposed amendments to the economic provisions of the 1987 Constitution, especially as Duterte had sought charter change through an appointed constitutional commission.
Under the constitution, no foreign equity is allowed in mass media except recording; the practice of professions, especially law; utilisation of marine resources in archipelagic waters, territorial sea and exclusive economic zones as well as small-scale utilisation of natural resources in rivers, lakes, bays and lagoons; as well as manufacture, repair, stockpiling and/or distribution of nuclear weapons.
Also under the Constitution, only up to 30 per cent foreign equity can be allowed in advertising firms.