BusinesslVlirnDr Wednesday, August 28, 2Ol9

House panel OKs bill allowing

aliens ?ractice of professions'
HE House Committee on
Economic Affairs and the
House Committee on Trade
and Industry on Tuesday jointlY
endorsed for plenary approval a
Duterte administration PrioritY
measure amending the RepublicAct
7042, or the Foreign Investments
Act of 1991 to exclude the "Prac-
tice of professions" in the Foreigri
Investment Negative List (FINL).
In a joint hearing, Economic Af-
fairs committee chief Sharon Garin
of AAM BIS - OWA and the Trade and
Industry Chairman Weslie Gatchal-
ian invoked-in approving the bill
House Rule 10, Section4S or
-the
the one-day hearing only, which
covers all bills that have been ap-
proved oh third reading during the
previous congress.
"The exclusion of the practice
of professions from the coverage
of the Foreign Investment Act is
noteworthy, because it will enhance
the competitiveness of Filipino
professionals both in the domestic
and international labor markets.
There is, likewise, an advantage
for allowing foreigners to practice
in the countrybecause itwould en-
able closer cooperation and spread
of innovation for ouY own pool of
professionals," Gatchalian said.
The measure was authored by
Albay Rep. Joey Salceda, Deputy
Speaker Raymund Viilafuerte and
Tarlac Rep. Victor Yap.
According to Yap, Republic Act
7042 or the Foreign Investments
Act (FIA) of 1991 was enacted. to
attract productive foreign invest-
ments to facilitate transfer of tech-
nology, enhance skills of FiliPino
workers, promote the welfare of
Filipino consumers, and to generate
more employment for the economy.
However, he said two Provisions
in thelaware deemedtobe inconsis-
tent with the objectives of tl : FIA.
SEE "HousE," Az

ment requirement to 15 direct local

House...
Cor.ItrNuPo rnou A8
"First is the inclusion of 'practice of
professions'in the items listed in the
Foreign lnvestment Negative List, and
second,the high numberof direct local
hiresi he said.
ln his explanatory note, Villafuerte
said these amendments to the FIA:!how
the euntfu'soPenness to change and
willingness to live up to the economic
potential by reeling in more foreign
investments. i

hires required." " Meanwhile, Gatchalian exPressed

Yap said the bill aims to exclude
the "practice of professions" from the
coverage of the negative list so as to
attract foreign professionals to come
to the country.
"By allowing foreign Profession-
als to practice in the Philippines, they
would be able to bring in technology
and (noy-how from abroad,4nd'hEl'p , "-
.reaici.;obsfof locals byattra*lve''husi-'
nesse$ thatre<i u i re hig h ly skitted Bro-
fessionals in the countryi'he added.
Yap said this measure also reduces
the number of direct local hires.
"While FIA allows foreign investors
to establish small- and medium-sized
enterprises with a minimum paid-in
capital of 5100,00, they are required
to employ at least 50 direct local hires.
However, operationallY sPeaking, a
small-.and medium-sized enterprise
cannot immediately sustain a labor
force of 50 employees.Thus, there is a
need to lower the threshold of employ-
'amount
reservation over the of the
investment of 5100,000 in view of the
impact it may create on local industries.
ln its position paper, Professional
Regulation Commission Chariman
Teofilo Pilando Jr. said the PRC main-
tains its initial position not to exclude
the practice of profession from cover-
age gfthe,RePublic Act7042.
"While we understand the intent of
, .1Jte proposed amendment, the PRC is
of the view that practice of profession
is still a partially nationalized activity
given that under the Constitution, the
same falls under National Economy and
Patrimony a I beit with exceptionsi said
Pilando.
"To remove it absolutely in the nega-
tive list may not be transparent on the
limitation to professional practice by
foreigners, and maY engenQer an im-
pression that there exists no restriction
af}!irrr*
at all to their Practice;" he

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