Duterte's economic team cites Drilon's vital contribution in passage of game changing economic reforms

The country's economic managers lauded and thanked Senate Minority Leader Franklin M. Drilon for his outstanding work in the passage of game changing economic liberalization laws that could hasten the country's economic recovery from the COVID-19 pandemic and boost foreign direct investments (FDIs).

"Thank you for your valuable contributions that led to the passage of the three economic liberalization bills, namely, the Amendments to the Retail Trade Liberalization Act, Amendments to the Foreign Investment Act, and Amendments to the Public Service Act," the economic managers told Drilon in a letter. The letter was signed by Finance Secretary Carlos G. Dominguez, Trade Secretary Ramon M. Lopez, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno, National Economic and Development Authority Secretary Karl Kendrick T. Chua, and Acting Budget Secretary Tina Rose Marie L. Canda.

Even if he is part of the opposition, Drilon led the chamber in pushing for the economic measures included in the Duterte administration's legislative agenda, namely the amendments to the Public Service Act and amendments to the Retail Trade Liberalization Law.

Drilon is the principal author and co-sponsor of Republic Act 11659 or the Amendments to the Public Service Act and principal author of Republic Act 11595 or the Amendments to the Retail Trade Liberalization Act.

"I am proud of shepherding the passage of these two economic reform laws. These laws will pave the way for a more vibrant economy, more investments and more jobs for our people," Drilon said in response.

"It is my view that with these economic laws, the country is in a better position to tackle the economic slump due to the COVID-19 pandemic," he said.

Drilon explained that the Amended Public Service Act, which was enacted in 1936, provides a clearer definition of public utilities, as he pointed out how the interchangeable use of "public utility" and "public service" has effectively barred foreign entry into the market.

On the other hand, RA 11595 lowers the paid-up capital requirement in retail trade to P25 million from its previous limit of $2.5 million or roughly P125 million. The law also relaxes the restrictions in foreign investments by removing investment categories and setting an across-the-board minimum paid up capital investment equivalent to P25 million.

Meanwhile, the Amendments to the Foreign Investment Act will encourage more foreign investment after loosening the restrictions on foreign entrants. ?

"The passage of these game changing reforms reflect our shared commitment to fast-tracking our recovery from the COVID-19 pandemic and solidifying our economic growth prospects," the economic managers said.

"These amendments will bring dynamism to our progressing economy by reeling the constraints that have long hindered the flow of foreign capital into the country," they added.