The National Economic and Development Authority (NEDA) on Monday released the implementing rules and regulations (IRR) of the amendments to the Public Service Act (PSA), which allows full foreign ownership of key public services.
NEDA Secretary Arsenio M. Balisacan said the IRR of the amended PSA, or Republic Act 11659, takes effect on April 4, 2023.
“With the IRR already in place, we see this as a landmark reform that will further improve the country’s position as an ideal investment hub, which will help enhance employment opportunities and allow more Filipinos to benefit from more improved goods and services,” Balisacan said.
Upon its effectivity, the amendments to the PSA enables the liberalization of key public services by allowing full foreign ownership of businesses in select industries such as airports, railways, expressways, and telecommunications.
Prior to the amendments, foreign ownership in the cited industries was limited to 40 percent.
Meanwhile, public service utilities such as electricity transmission and distribution, water and wastewater pipeline distribution systems including sewerage, petroleum and petroleum products pipeline transmission systems, seaports, and public utility vehicles remain subject to the 60-40 percent foreign equity limitation.
Accordingly, the amendments also provide safeguard provisions to protect the country against national security concerns that may arise through any proposed merger or acquisition, or any investment in a public service.
“The PSA amendments form a critical part of our endeavor to attract foreign investments to the country to boost market competitiveness, foster innovation, and create high-quality jobs,” Balisacan said.
Further, relevant administrative agencies may issue guidelines and circulars for the effective implementation of RA 11659 and its IRR, provided that these remain consistent with Commonwealth Act 146 as amended, as well as with RA 11659 and its IRR.
