Oligopolies stall Philippines development; more FDI needed – Salceda

 

Oligopolies stall Philippines development; more FDI needed – Salceda

Delon Porcalla 

(The Philippine Star )

- June 14, 2021 - 12:00am

MANILA, Philippines — The Philippines remains a laggard among its Asian neighbors, partly because of the influence oligopolies have over practically all administrations and, as such, local tycoons’ businesses thrive and deprive the country of much-needed foreign direct investments.

This was the assessment made recently by Albay Rep. Joey Salceda on the state of economic affairs in the country, in a recent digital forum sponsored by the Department of the Interior and Local Government (DILG).

“Operating as monopolies and oligopolies, the corporate conglomerates find it convenient to restrict production and investment below the competitive level,” the economist lawmaker who chairs the House ways and means committee said.

An oligopoly exists when a market or industry is dominated by a small group of large producers and sellers.

Citing the country’s few FDI, Salceda explained that foreign investors’ “willingness to invest” is “inhibited by their concentrated ownership structure and their uncertainties about the stability and duration of government favoritism.”

The DILG-led webinar sessions are held in support of Resolution of Both Houses 2 (RBH 2), authored by Speaker Lord Allan Velasco, which seeks to open up the country to more foreign investors by amending restrictive economic provisions in the Constitution.

Asked about the impact of opening the economy on the micro, small and medium enterprises (MSMEs), Salceda said more FDI should benefit market competition.

“FDI restrictions lead to lack of competition in the country which increases oligopolistic power and reduces the need to invest. As a result, oligopolies are the ones benefitting from profits, influence law, and prevent foreign competitions to enter the Philippines,” he said.

Salceda lamented that while the country’s post-Marcos Constitution made sure dictatorships will never see the light of day again, its very rigid protectionist economic policies allowed domestic industries to be controlled by oligopolies.

“In trying to be nationalistic with our Constitution, we have ironically fattened our domestic oligopolies, at the expense of the people. Shamefully, and once again, we are the most oligopolistic market in the region,” he said.

Seeking to correct this is what moved the House to approve RBH 2 on third and final reading last June 1. It is now pending before the Senate.

Ako Bicol party-list Rep. Alfredo Garbin Jr., who heads the House committee on constitutional amendments, remarked on Independence Day last Saturday that Filipinos should be “free” from the “economic chains” in the 1987 Constitution.

“Twenty (20) years of the 21st Century have passed and we are realizing now that we cannot prosper in the remaining decades of this 21st Century if we keep ourselves chained to these restrictive economic provisions,” said Garbin as he urged the Senate to act on RBH 2.

https://www.philstar.com/headlines/2021/06/14/2105309/oligopolies-stall-philippines-development-more-fdi-needed-salceda?fbclid=IwAR28X0gIZ1b6NnwJbrv0u1lVii2gdWYVcT4AxylF5amRtGNE6gRPd4H79vQ

Easing of foreign ownership restrictions to break ‘vicious cycle’ of oligopolies —Salceda

   Albay Representative Joey Salceda

Easing of foreign ownership restrictions to break ‘vicious cycle’ of oligopolies —Salceda

By TED CORDERO, GMA News

Published June 11, 2021 2:51pm

Albay Representative Joey Salceda said Friday that easing foreign ownership restrictions in the 1987 Constitution will open the country for more foreign direct investments (FDIs) which will force local large enterprises to invest more and be competitive.

Salceda, an economist, is one of the key proponents of the Resolution of Both Houses No. 2, which seeks to amend the economic provisions of the Constitution.

The measure has been adopted by the House of Representatives on third and final reading on June 1.

RBH No. 2 is seeking to insert the phrase "unless otherwise provided by law" to the constitutional provisions on national economy and patrimony; education, science and technology, arts, culture, and sports; and on general provisions to give Congress flexibility to enact laws that would free up the economy to foreign investors.

Salceda said the measure will open the economy to more FDIs, noting that the Philippines is among the most restrictive to FDIs across various sectors.

“FDI restrictions also resulted in the presence of oligopolies, making the Philippines the most oligopolistic in the region,” the lawmaker said, citing data from the World Economic Forum.

Salceda said this is the case since the market is dominated by a small group of large conglomerates.

“Oligopolies further reduce the investment appetite. Operating as monopolies and oligopolies, the corporate conglomerates find it convenient to restrict production - and investment - below the competitive level,” he said.

“Also, their willingness to invest is inhibited by their concentrated ownership structure, and their uncertainties about the stability and duration of government favoritism,” he added.

To break the “vicious cycle” of undisturbed oligopolies, easing restrictions on FDIs will force local conglomerates to be “reasonably competitive” and “invest more” in the country.

“We are not really after the money, we are after the technology and knowledge transfer which foreign investments can provide,” Salceda said.

Citing data from the World Bank and Department of Finance estimates, the lawmaker said the Philippines’ share of FDIs in Southeast Asia declined from 5.1% in 1996 to 4.4% in 2019 due to restrictive and protectionist provisions in the Constitution.

Salceda said if the Philippines opens its doors further to foreign investors through easing of foreign ownership restrictions, the country can dramatically grow the same way as Vietnam when its gross domestic product grew five times from $6.472 billion in 1990 to $31.173 billion in 2000 when it passed its Foreign Investment law in 1987.

This is also favorable for the country as it moves to recover from a pandemic-induced recession.

The Makabayan bloc earlier said that the measure would not address the pandemic's adverse effects on the lives of Filipinos.

Other lawmakers also feared that this would only pave the way for the introduction of political amendments in the present Constitution such as term extension for some elected officials or lifting their term limits.

But Speaker Lord Allan Velasco has insisted that the intention is purely to help the Philippines rise from the pandemic and to make the country fully-competitive with Asian neighbors.—AOL, GMA News

https://www.gmanetwork.com/news/news/nation/791146/easing-of-foreign-ownership-restrictions-to-break-vicious-cycle-of-oligopolies-salceda/story/

Filipino last?

 Filipino last?

DEMAND AND SUPPLY - Boo Chanco 

(The Philippine Star) - June 7, 2021 - 12:00am

The Filipino First policy, a legacy from our post WW2 politicians, resulted in the Philippines being relegated from second only to Japan, to last in our region of tiger economies. It was a policy that was used by our economic elite for rent-seeking privileges.

With Filipino First, we developed a feeling of economic insecurity that made us afraid of foreign investors. This kind of economic nationalism is not useful in today’s world.

It enabled the economic elite to keep prices high to the disadvantage of Filipino consumers while delivering mostly substandard products and services. Puede na yan means Pinoys must live with less quality.

In the telecom industry, I still remember how my parents waited over 10 years to get a telephone line from PLDT.

Then the industry was liberalized by FVR, but investors were limited to Filipinos. There were six or seven groups that got franchises to compete with PLDT. Soon, they all sold out to PLDT or Globe. Rent-seeking at its best.

Telecoms is an industry that requires big investments. Only the international players can be expected to compete with our telecoms duopoly.

And if we really think about it, even the current prohibition for foreign ownership in telecoms looks silly, with Globe and PLDT effectively controlled by foreign entities. The largest shareholder of Globe is Singapore Telecom, not Ayala. PLDT is Indonesia’s First Pacific.

Now, you might say, if foreigners can do what they did in Globe and PLDT under current rules, is there still a need to amend the Public Service Act to liberalize foreign ownership?

Yes, because many foreign investors want straightforward rules and policies that allow them majority ownership. If they have to go to a local law firm to help them go around the Constitution, that makes them susceptible to corruption from local regulators and the courts.

The proposal to exclude telecommunications from the definition of public utility subject to the 60/40 rule had been passed by the House and is now pending in the Senate.

But some senators are using national security as an excuse to stop the measure. It is easy to suspect they are just trying to keep out competitors of the existing players.

The issue however, is beyond the telecoms industry. We simply need more foreign investors to come in and create jobs. But because they sense a lack of hospitality for foreign capital through our Filipino First policies, they go elsewhere, like Vietnam.

The latest preliminary data from the Philippine Statistics Authority (PSA) showed that foreign investments in 1Q21 fell by 32.9 percent YoY to P19.6 billion from P29.1 billion, marking the fifth consecutive quarter with a YoY decline and the lowest level since the P15.5 billion logged in 2Q20.

Foreign capital goes where it is welcome, and countries in our region are more hospitable to foreign capital than we are.

But why should we be afraid of foreign investments?

I received this e-mail from a senior Korean business executive who was reacting to a column I wrote on Vietnam and how it overtook us in economic growth.

“Your column on Feb 12, was quite instructive for me. I’ve been thinking over and I suggest you write another column on ‘Why Samsung Electronics went to Vietnam’.

“In 2008, the big boss of Samsung was here in the Philippines to evaluate the business conditions on which country is the best for them. But finally, Samsung chose Vietnam. Not the Philippines.

“This is quite an interesting story because the Philippines still has the same way of thinking as in 2008. There are many restrictions and limitations on foreign investors here in the Philippines. Under these restrictions, I am sure no big Korean investments will come.

“None of the other countries in the region have such restrictions on foreign investors. Every country is willing to give special incentives and benefits for foreign investors. Please study why Samsung went to Vietnam in 2008.

“Now, the biggest investors in Vietnam are Korean. More than 9000 Korean companies are located in Vietnam. (Here only a few hundred). Whenever I talk to officials of the government, I think they don’t know this story.”

Unfortunately, the Senate may continue to be a hindrance to foreign investments.

Senator Recto is opposing the PSA bill because he is afraid the Chinese may take over our telecom industry. Precisely why we need the PSA bill to pass… The industry grapevine tells me that two Japanese telcos (KDDI and Softbank) are eager to come in, but only if they will be legally allowed to invest in majority ownership.

To safeguard national security, three provisions were included: vetting by the National Security Council and approval by the President of all investments in critical infrastructure; prohibition of SOEs (State-Owned Enterprises) from investing in telecommunications or increasing their share; cybersecurity ISO certification for critical infrastructure.

The ban on investment of SOEs (State-owned Enterprises) in telecom and other critical infrastructure effectively bans all Chinese telecom companies because they are all SOEs. But China Telecom is already invested in Dito Telecommunity.

The danger to national security is not so much who owns the telecom companies, but who manufactures the equipment they use. All existing telecom companies here use China’s Huawei equipment.

By allowing Japanese, Korean and other foreign players in, we may be able to diversify our sources of equipment as well. This is important because eventually under the US CLEAN program, our telcos won’t be allowed into the US financial system using Huawei equipment. That cuts us from the US banking system.

In the proposed PSA, a blanket ban on all foreign ownership of telcos being contemplated by some senators will leave us with three telcos dependent on Huawei equipment. We run the risk of our telcos‘ technology getting obsolete as Huawei is denied advanced US technology.

Passing the PSA bill is the first step to create a favorable investment environment here for foreign investors.

We have to stop being afraid of foreign capital. We just have to properly regulate their activities. Letting them own their business here should not matter. They bring competition that benefits consumers, and we need the jobs they will create.

Our Filipino First policy only made Filipinos last. That’s the awful truth.

https://www.philstar.com/business/2021/06/07/2103544/filipino-last?fbclid=IwAR3cyQHpe1XI85-TlJJ_ANw7EO3r15S9jtUgZBZ8P-lRJSv7ZV4VyR9zw2c

Draft Bill to Accelerate the Development of Mindanao

 

Republic of the Philippines

SENATE OF THE PHILIPPINES

Pasay City

 

 

EIGHTEENTH CONGRESS Second Regular Session     SENATE BILL No. ____       Introduced by HON. JUAN MAKABAYAN _______________________________________________________________________     AN ACT TO ACCELERATE THE DEVELOPMENT OF MINDANAO, PROVIDING FOR FULL AND OPEN COMPETITION IN THE ECONOMY, COLLEGIAL RULE, IMMEDIATE ACCOUNTABILITY AND EQUAL OPPORTUNITY IN LOCAL GOVERNANCE, AND REGIONAL EMPOWERMENT WITH REGIONAL BUDGETING IN NATIONAL GOVERNANCE

EXPLANATORY NOTE

 

 

This bill seeks to accelerate the development of Mindanao by providing for policy reforms related to capital formation and business competition, structural reforms concerning the election, organization and accountability of local government units, and administrative reforms involving the devolution of major decision-making powers to an integrated regional office coupled with regional budgeting in the national government.

 

          The economic policy reforms intend to maximize the formation of capital, by making use of all available capital, including foreign capital in addition to local capital. This is implemented through the liberalization or lifting of restrictions on foreign investments. The additional capital is seen to create new jobs from new or expanded enterprises, to reduce consumer prices from increased supply of goods and services, and to generate taxes from new or expanded business activities.

 

          The lifting of restrictions on foreign investments also promotes free and open competition in the economy. The entry of new independent foreign players reduces the risk of cartelization by local players, who heretofore had been legally protected from legitimate competition by foreign players. The restriction of competition imposed by the law itself has ironically enabled the proliferation of local monopolies and oligopolies.

 

Nonetheless, under this bill, the liberalization of foreign investments will be subject to safeguards to protect the basic securities of the State. These basic securities include the external national security, internal national security, food security, water security, energy security, environment security, resource security (natural, human, industrial) and cyber security. The bill authorizes the President to establish a Foreign Investment Council vested with authority to review, investigate, mitigate risks, suspend or prohibit foreign investment transactions.

 

Furthermore, the lifting of restrictions on foreign investments will be subject to the national interest. The bill also authorizes the President to require reciprocity in foreign investment transactions.

 

          The political structural reforms intend to diffuse political power over a group of elected officials, instead of concentrating such power in one individual. This is implemented by adopting the “council type LGU” characterized by collegial rule, in lieu of the “mayor type LGU” characterized by one-man rule. This is seen to provide for continuity of plans and programs, systematically integrate law making with law implementation, and exact immediate accountability on local chief executives through the expediency of a “vote of no confidence.”

 

          The restructuring of local government units also promotes equal opportunity for rich and poor candidates. This is implemented by shifting from “voting at large” in one big district, to “voting by district” in multiple small sub-districts.

 

By reducing the size of voting districts, with one councilor for every sub-district, the relatively unknown and underfunded candidates are given a reasonable chance against the “rich and famous” candidates.

 

By apportioning the seats of councilors among several sub-districts, more communities are assured of representation in the council.

 

          The political administrative reforms intend to bring the national government closer to the people of the regions. This is implemented by devolving major decision-making powers to an integrated regional office headed by a cabinet rank secretary.

 

This is further implemented by regional budgeting, where the personnel, resources and budgets of existing regional administrative offices of selected line departments are consolidated under the said office.

 

          In this regard, the bill authorizes the President to create by Executive Order a super region to cover the Mindanao area, excluding the Bangsamoro region. The Mindanao regional office assumes jurisdiction over the existing administrative offices of Region 9, Region 10, Region 11, Region 12 and Region 13.

 

 

 

 

 

 

 

 

 

Republic of the Philippines

SENATE OF THE PHILIPPINES

Pasay City

 

 

EIGHTEENTH CONGRESS Second Regular Session     SENATE BILL No. ____       Introduced by HON. JUAN MAKABAYAN _______________________________________________________________________     AN ACT TO ACCELERATE THE DEVELOPMENT OF MINDANAO, PROVIDING FOR FULL AND OPEN COMPETITION IN THE ECONOMY, COLLEGIAL RULE, IMMEDIATE ACCOUNTABILITY AND EQUAL OPPORTUNITY IN LOCAL GOVERNANCE, AND REGIONAL EMPOWERMENT WITH REGIONAL BUDGETING IN NATIONAL GOVERNANCE

 

          Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

 

Section 1. Title.- This Act shall be known as the “Mindanao Accelerated Development Act of 2021.”

 

Section 2.  Declaration of Policy.- It is the policy of the State to promote the accelerated development of Mindanao. To this end, the State shall promote the formation of capital to include foreign investments in addition to local investments; ensure full and open competition in the economy; provide for collegial governance in local government units; exact immediate accountability of local chief executives; ensure equal opportunity among candidates in local elections; and devolve major decision-making powers to an integrated regional office.

 

CAPITAL FORMATION /

FULL AND OPEN COMPETITION

 

Section 3. Omnibus Lifting of Nationality Requirements.- Except as otherwise provided in this Act, and subject to the provisions of the Constitution, all local and foreign investors shall be subject to the equal protection of the laws.

 

Unless otherwise provided in this Act, all statutory laws and implementing rules and regulations that impose nationality requirements on the ownership and management of property, including the ownership of shares of stock of a corporation, to exercise a right or to avail of a privilege, shall not be applicable in the Mindanao area covered by the geographic areas and territorial jurisdiction of Administrative Regions 9, 10, 11, 12 and 13,[i] but shall continue to be applicable in the geographic areas and territorial jurisdiction of the Bangsamoro Autonomous Region for Muslim Mindanao (BARMM).

 

The exclusion from the application of foreign investment restrictions shall cover only the areas covered by the stated administrative regions. It shall not cover the areas covered by the BARMM.

 

The exclusion of restrictions under this Act shall not cover the exercise of a profession, which are governed by special laws, and may be subject to reciprocity requirements.

 

The exclusion of restrictions provided by this Act shall not cover the properties and activities subject to nationality limitations under the Constitution.

 

The provisions of Article XII of the 1987 Constitution, and of Rep. Act. No. 8179, regarding the ownership of private lands by foreign nationals, shall remain valid, unless otherwise provided by law.

 

Section 4. Limitation of Scope.- Except as otherwise provided in this Act, the omnibus lifting of nationality requirements or foreign investment limitations shall not apply to Micro Enterprises under Republic Act No. 9501, Small-Scale Mining under Republic Act No. 7076, and Public Lands under Commonwealth Act No. 141. The ownership of private lands shall be limited to Filipino citizens and to legal entities at least sixty per centum of the capital is owned by them, unless otherwise provided by the Constitution and the applicable law.

 

Section 5. Foreign Investment Council.- The President may in the national interest establish by executive order a Foreign Investment Council[ii] to protect the basic securities of the State, which may be affected by foreign investment transactions in the Mindanao area covered by this Act, excluding the areas under BARMM.

 

The basic securities of the State include the external national security, internal national security, food security, water security, energy security, environment security, resource security (natural, human, industrial) and cyber security.

 

The Council may be vested with authority to review, investigate, mitigate risks, suspend or prohibit foreign investment transactions, to protect the basic securities of the State.

 

Section 6. Organization and Operation of the Council.- Unless the President provides otherwise, the Council shall be established, organized, mandated, empowered and tasked as provided in this Section.

 

The Council shall be composed of the following members or the designee of any such member:

(a) The Secretary of the Department of Justice;

(b) The Secretary of the Department of National Defense;

(c) The Secretary of the Department of Interior and Local Government;

(d) The Secretary of the Department of Agriculture;

(e) The Secretary of the Department of Environment and Natural Resources;

(f) The Secretary of the Department of Energy;

(g) The Secretary of the Department of Labor and Employment;

(h) The Secretary of the Department of Trade and Industry;

(i) The Secretary of the Department of Information and Communications Technology;

(j) The Director-General of the National Economic Development Authority;

(k) The Governor of the Bangko Sentral ng Pilipinas;

(l) The Chairman of the Securities and Exchange Commission;

(m) The Solicitor-General;

(n) The heads of any other executive department, agency, or office, as the President determines appropriate, generally or on a case-by-case basis.

 

The Secretary of the Department of Justice shall be the Chairman of the Council. The Chairman of the Council shall have the authority, exclusive of the heads of departments or agencies, to act, or authorize others to act, on behalf of the Council, and to communicate on behalf of the Council with the legislative branch of government and the public.

 

The resolutions of the Council shall be approved by a majority vote of all its members.

 

The lead agency or agencies (lead agency) shall have primary responsibility, on behalf of the Council, for the review and investigation of a specific covered transaction.

 

The following shall be the lead agency for the review and investigation of the particular transaction indicated:

 

(a) The Department of National Defense for any covered transaction that poses a risk to defense or external security;

 

(b) The Department of National Defense for any covered transaction that poses a risk to internal security; the Department of Interior and Local Government as co-lead agency for any covered transaction that poses a risk to internal security;

 

(c) The Department of Agriculture for any covered transaction that poses a risk to food security;

 

(d) The Department of Environment and Natural Resources for any covered transaction that poses a risk to water security;

 

(e) The Department of Environment and Natural Resources for any covered transaction that poses a risk to natural resource security;

 

(f) The Department of Environment and Natural Resources for any covered transaction that poses a risk to environment security;

 

(g) The Department of Energy for any covered transaction that poses a risk to energy security;

 

(h) The Department of Labor and Employment for any covered transaction that poses a risk to human resource security;

 

(i) The Department of Trade and Industry for any covered transaction that poses a risk to industrial resource security;

 

(j) The Department of Information and Communications Technology for any covered transaction that poses a risk to cyber security.

 

The Chairman of the Council shall designate the lead agency or agencies whenever a covered transaction poses a risk to two or more basic securities.

 

The Council, by a majority vote of all its members, may suspend or prohibit a covered transaction if in the reasonable exercise of its discretion it determines that such action is necessary to address the risk.

 

Any covered transaction report, relevant documentary material or information, shall be confidential and exempt from disclosure. No such report, material or information may be made public, except as may be relevant to any administrative or judicial action or proceeding. Nothing in this section shall be construed to prevent disclosure to the legislative branch of government.

 

Section 7. International Reciprocity.- The President may in the national interest require by executive order international reciprocity with respect to foreign investment transactions in the Mindanao area covered by this Act, excluding the areas under BARMM. Reciprocity may be imposed on a specific industry, or two or more but not all industries, or across all industries, at the discretion of the President. Reciprocity may be applied to one foreign state, or two or more but not all foreign states, or across all foreign states, at the discretion of the President.

 

COLLEGIAL GOVERNANCE/

IMMEDIATE ACCOUNTABILITY/

EQUAL OPPORTUNITY

 

Section 8. Collegial Governance; Immediate Accountability; Equal Opportunity.- The formation and organization of provinces, cities, municipalities and barangays located in the Mindanao are under this Act, excluding the areas under BARMM, shall be as follows:

 

(a) The national and local government functions shall be delineated. In case of conflict between the national interest and the local interest, the national interest shall prevail.

 

(b) Local government powers shall be consolidated in cities and municipalities. The city and municipality shall be the basic local government units.

 

(c) The members of the city council and municipal council shall be elected by district, with one councilor for every local legislative district. They may be subject to recall upon petition of at least twenty-five percent of the total number of registered voters in the district, or by resolution of a majority of all the members of a preparatory recall assembly comprised of all the barangay councilors of the district.

 

(d) The city mayor and municipal mayor shall be elected by majority vote of all the members of the local council from among themselves. The mayors of cities and municipalities within the territory of a province shall be the ex-officio members of the provincial council. The provincial governor shall be elected by majority vote of all the members of the provincial council from among themselves.

 

(e) The council members of barangays within the territory of a city or municipality shall be appointed by the mayor of the city or municipality, from a list of at least three nominees for every vacancy prepared by homeowners' associations, residential condominium corporations, and community associations, based in the barangay. The Department of Interior and Local Government may by implementing rules and regulations provide for the registration and grant of legal personality to community associations of barangay residents to promote local interest. The punong barangay shall be elected by majority vote of all the members of the barangay council from among themselves.

 

(f) The city mayor, municipal mayor, provincial governor and punong barangay shall serve based on the trust and confidence of the local council. They may be removed at any time for loss of confidence upon the vote of least two-thirds of all the members of the local council. 

 

(g) The term of office of the members of local councils shall be five years. No member of any local council shall serve for more than three consecutive terms.

         

Elections for city and municipal councilors shall be by party voting. Ballots shall indicate not only the party's candidate for councilor, but also the party's nominee for mayor. The voters shall vote for the candidate and the nominee together. However, the party may change its nominee if the party does not win a majority of the seats and joins a coalition government, or the nominee does not win a seat in the council.

 

These provisions shall apply to local government officials elected on the second Monday of May of 2025 and thereafter.

 

Section 9. Hybrid Elections.- All votes cast for local government officials in the Mindanao area covered by this Act, excluding the areas under BARMM, shall be counted or audited manually in public at the polling place immediately after voting is finished, even if the election process is automated.

 

These provisions shall apply to local government officials in the Mindanao area covered by this Act, excluding the areas under BARMM, who are elected on the second Monday of May of 2022 and thereafter.

 

DEVOLUTION OF MAJOR

DECISION-MAKING POWERS

 

Section 10. Mindanao Regional Office.- The President may in the national interest create by executive order a Mindanao Regional Office (MRO) to implement the devolution of major decision-making powers. The MRO shall be vested with jurisdiction over the Mindanao area covering by the geographic areas and territorial jurisdiction of Administrative Regions 9, 10, 11, 12 and 13, excluding the areas under BARMM.

 

The MRO shall be headed by a secretary of cabinet rank. The President shall have control and supervision over the MRO as an agency of the national government.

 

The creation of the MRO by the President shall not be deemed to include the appropriation of public money or property, which is the sole prerogative of Congress.

 

Unless otherwise provided or limited by the President, the regional offices of the covered line departments and their attached agencies in Administrative Regions 9, 10, 11, 12 and 13, excluding the areas under BARMM, shall be transferred to and placed under the control and supervision of the MRO, which shall integrate their functions and consolidate their resources.

 

Unless otherwise directed by the President, the line departments and their attached agencies covered by the transfer shall include all existing departments and agencies, except those under the Department of National Defense, Department of Interior and Local Government, Department of Foreign Affairs, Department of Justice, Department of Finance, Department of Budget and Management, National Economic Development Authority, and the Bangko Sentral ng Pilipinas.

 

GENERAL PROVISIONS

 

Section 11. Interpretation.- Nothing herein shall be construed to modify the requirements or otherwise liberalize the issuance of working visas or investor's visas under the immigration and investment laws, or of alien employment permits under the labor laws.

 

Section 12. Rules and Regulations.- The National Economic Development Authority (NEDA), in consultation with the Securities and Exchange Commission (SEC), the Board of Investments (BOI), the Philippine Economic Zone Authority (PEZA) and other government agencies concerned, shall prepare and promulgate the rules and regulations to implement the provisions related to foreign investments, within ninety (90) days after the approval of this Act.

 

The respective government agencies vested with authority to issue the implementing rules and regulations of the various statutory laws governing foreign investments, shall within ninety (90) days after the approval of this Act, prepare and promulgate the appropriate implementing rules and regulations.

 

Section 13. Repeal.- All laws, presidential decrees, executive orders, letters of instruction, proclamations, rules and regulations, and other issuances, or any part thereof, which are inconsistent with or contrary to the provisions of this Act, are hereby repealed, amended or modified accordingly.

 

Section 14. Separability.- If, for any reason or reasons, any part or parts of this Act shall be declared unconstitutional or invalid by any competent court, other parts of this Act shall be thereby shall continue to be in full force and effect.

 

Section 15. Effectivity.- This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette, or in at least two (2) national newspapers of general circulation.

 

 

Approved:

 

 

HON. JUAN MAKABAYAN

Senator

---

[i] See Rep. Act No. 7903, known as the Zamboanga City Special Economic Zone Act of 1995, Sec. 4(c) & (i). See Rep. Act No. 7922, known as the Cagayan Special Economic Zone Act of 1995, Sec. 6(c). See Rep. Act No. 9490, known as the Aurora Special Economic Zone Act of 2007, Sec. 4(d).

 

[ii] See US Defense Production Act of 1950, as amended by FINSA, Section 721 (50 U.S.C. App. 2170). Executive Order No. 11858 (as amended by Executive Order No. 13456), re Foreign Investment in the United States.