UPD University Council warns of risks in raising limits on foreign ownership

THE highest policy-making body of the University of the Philippines (UP) Diliman has warned against the risks posed by priority legislation that would open up vital industries to more foreign ownership.

In a statement, the UP Diliman University Council said Senate Bills (SB) 2094, 1156, and 1840 “present clear long-term risks for the country” in the wake of the damage done by the pandemic.

The UPD University Council is the highest policy-making body of the UP Diliman, composed of its Chancellor, Vice Chancellor and all assistant professors, associate professors and professors of the university.

SB 2094 seeks to amend the Public Service Act to reclassify “public utilities” such as telecommunications and transportation to “public services” and allow 100% foreign ownership in these industries.

SB 1156 seeks to amend the Foreign Investments Act of 1991 to liberalize the so-called “negative list,” or the industries from which foreign investment is either banned or restricted.

SB 1840 is a proposed amendment to the Retail Trade Liberalization Act of 2000, seeking to ease foreign entry by lowering the minimum investment threshold to engage in retail.

The council urged legislators to “use this moment to stand with and invest in the economic capabilities of the Filipino people.”

It specifically highlighted the need to develop domestic capacity in telecommunications.

“Instead of building the Philippine government’s capacity to secure the country’s digital and physical connectivity especially in the time of national and global emergencies, SB 2094 would pass on this responsibility to foreign corporations,” it said.

Last month, the Senate ratified the bicameral report that lowered the minimum paid-up capital requirement for foreign retailers to P25 million (or $500,000) from the current P125 million (or $2.5 million), thus opening up micro, small, and medium enterprises in the retail industry to foreign competition.

Also in September, the Senate approved on third and final reading a bill allowing foreigners to invest 100% in enterprises not covered by the negative list. 

Debate on the bill redefining public utilities will resume on Nov. 6. — Alyssa Nicole O. Tan