Investment cap not helpful to renewable energy investments

Constitutional provision limiting foreign ownership to 40% in Philippine companies complicates investments.

British Ambassador to the Philippines Stephen Lillie said this cap will not help motivate British firms to invest in the Philippines, especially in its renewable energy sector.

The “60-40” rule in the Philippine Constitution limits foreign ownership of major industries in the country to 40%.

Lillie noted the many opportunities in renewable energy such as wind and biomass in the Philippines and British expertise in the sector.

“Unfortunately, there are limitations in Philippine law that complicate investments here such as the 40 percent equity cap, which is unhelpful,” Lillie said.

He noted the business sector has made many submissions to the government to make clear its view that that is one of the regulations that needs to be tackled to create a better business environment in the Philippines.

Lillie said British renewable energy firms see potential in investing in the Philippines because of the country's considerable renewable energy potential.

“The Philippines has a huge demand for all kinds of energy sources,” he said. “And British companies are interested in contributing to that.”