Makati, the main business district of the Philippines, Metro Manila Philippine President Rodrigo Duterte approved a law allowing foreign investment in more business sectors, Reuters quoted his office as saying on March 4. The move is widely seen as a measure to boost job creation and growth in the country’s economy, which has been hit hard. COVID-19 pandemic. The law amends a three-year-old foreign investment rule to allow, for the first time, international players to set up and fully own small and medium-sized enterprises and hold 100% of the company’s…
Philippine President Rodrigo Duterte approved a law allowing foreign investment in more business sectors, Reuters To quote his office on March 4. The move is widely seen as a measure to boost job creation and growth in the country’s economy, which has been hit hard by the Covid-19 pandemic.
The law amends a three-year-old foreign investment rule to allow, for the first time, international players to set up and fully own small and medium-sized enterprises and hold 100% stakes in companies in their industries already allowed to run.
Previously, foreign investors could only invest in small businesses if they employed at least 50 Filipino workers.
“Foreign-invested enterprises should be encouraged to significantly expand livelihoods and employment opportunities for Filipinos,” the new law states.
It will halve the minimum capital required to start a business to $100,000 as long as the foreign investor employs at least 15 local workers and brings in “advanced technology.”
against competition from neighboring countries
Due to deterrent issues such as red tape, weak infrastructure and policy uncertainty, the Philippines has long struggled to attract foreign money and is increasingly losing business to neighbors that used to offer better tax breaks and lower operating costs.
But the government has recently made efforts to reverse that trend. Last year, Duterte lowered the minimum capital requirements for foreign retailers to set up shop in the Philippines.
another billwhich would allow for full foreign ownership of Philippine public services such as telecommunications, railways, airlines and domestic shipping companies, pending Duterte’s approval.
