Lacson: MSMEs should benefit from amended Foreign Investments Act (Sabong News)
Author
Mario Casayuran
Date
MARCH 08 2022
Partido Reporma standard-bearer Senator Panfilo Lacson on Tuesday, March 8 expressed hopes that stakeholders from the micro, small, and medium enterprises (MSME) sector could find potential business partners among external investors following the recent ratification of the amended Foreign Investments Act (FIA).
With safeguards attached to the modified rules on the entry of foreign investments, Lacson said small business owners looking for sponsors who are willing to infuse some capital funding into their fledgling enterprises might capitalize on this opportunity.
The presidential candidate, however, underscored that terms and conditions still apply to any foreigner who wants to do business in the country, emphasizing that the interests of Filipino small business owners and MSME stakeholders must be protected by the state.
‘’We opened up to foreigners the opportunity to invest here but it has safeguards. As long as the starting capital is $200,000 and below, that is protected, no foreign investors can get involved in. This covers the micro and small (enterprises),’’ Lacson said of the measure recently signed into law by President Duterte.
Duterte signed last Wednesday Republic Act (RA) 11647, which amended FIA, and declared it a policy of the state to welcome foreign investments “as a supplement to Filipino capital and technology in those enterprises serving mainly the domestic market”.
The Department of Trade and Industry (DTI) lauded this development as it provides less stringent requirements for potential foreign investors to do business in the Philippines, which would hopefully accelerate our economic recovery amid the Covid-19 pandemic.
The new law allows foreign investors to invest in a domestic enterprise unless participation of foreigners is limited or prohibited to a smaller percentage. It is expected to make the country more investment-friendly and lead to more businesses opening up, creating more jobs in the process.
Lacson recognized that the MSME sector was badly hit during the height of the coronavirus pandemic and so it could use some investment boost, as stipulated under the amended legislation, on top of easing public health restrictions and reopening the economy.
‘’The MSMEs comprise 99.5 percent of enterprises in the Philippines… Its labor force, I think, covers about 63 percent. Imagine if the MSMEs are hit with a 63-percent labor force? The impact would be extreme… So, we should encourage our MSMEs (to rise again),’’ he stressed.
Lacson brought up the possibility of the MSME sector taking advantage of the amended FIA during his recent visit to Cavite where he checked on thriving small businesses in the province such as the Café Amadeo Development Cooperative and the kangkong chips enterprise owned by Josh Mojica.
The presidential candidate expressed optimism the law would encourage more Filipinos to venture into MSMEs aside from making credit facilities from financial institutions more accessible for them to ensure their adaptability and survival amid an ever-growing and changing business environment.
