The Securities and Exchange Commission (SEC) has drafted new guidelines that considered voting shares in determining compliance with the 30 to 40-percent limit on foreign ownership in utilities, media, advertising and natural resources. A study by state-run Philippine Institute of Development Studies (PIDS) underscored the need for the country to pursue a comprehensive review of the constitutional limitations on foreign equity particularly the 60-40 equity ruling. "The Philippines is already considered relatively open vis-a-vis its ASEAN (Association of Southeast Asian Nations) neighbors. Foreign entry remains restricted in a substantial number of important economic sectors," said PIDS research fellow Rafaelita Aldaba. While limitations on foreign equity in these sectors cannot still be directly addressed, Aldaba said the government needs to continue implementing measures to promote competition and strength institutional and regulatory framework particularly in public utilities. She said undertaking market reforms, setting up good infrastructure and efficient institutions will enable the local companies take advantage of the opportunities offered by the regional economic integration by 2015.
