Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno underscored the importance of implementing game-changing legislative reforms that seek to open the economy to foreign investments in order to sustain the post-pandemic recovery.
In the 25th membership meeting of the Rotary Club of Manila, the Governor expressed his support for amendments to the Retail Trade Liberalization Act, Public Service Act, and Foreign Investments Act, which are all on the cusp of approval.
“With or without crisis, we should continue to pursue structural reforms that would put the Philippines not just on the road to pre-crisis growth but on a sustainable path of development,” according to Governor Diokno.
The Retail Trade Liberalization Act or Republic Act (RA) No. 11595 was approved by President Rodrigo Duterte last December 2021. It aims to further open the country’s retail sector to foreign players by lowering the minimum paid-up capital from around P125 million to P25 million.
Diokno also backs amendments to the 80-year-old Public Service Act (PSA), which will allow foreign ownership of key economic sectors, and amendments to the Foreign Investments Act (FIA), which will encourage foreign professionals to bring their practice, know-how, and technical expertise to the Philippines.
Both bills are currently pending in Congress, with the revisions to the PSA still needing to go through bicameral proceedings. The amendments to the FIA, on the other hand, is awaiting approval from the President.
“I am confident that with these game-changing reforms, we can achieve real change in the lives of ordinary Filipinos through more and better jobs and a more competitive economy,” the Governor concluded.