Measures seen boosting economic growth and consumer protection, including one allowing the entry of more foreign banks, have been signed into law by President Benigno S. C. Aquino III, Malacanang yesterday said.
Communications Secretary Herminio B. Coloma, Jr. said Mr. Aquino, on July 15, inked five bills forwarded by the Senate and the House of Representatives:
• Republic Act (RA) 10641, or An Act Allowing the Full Entry of Foreign Banks in the Philippines;
• RA 10642, An Act Strengthening Consumer Protection in the Purchase of Brand New Motor Vehicles;
• RA 10643, An Act to Effectively Instill Health Consciousness through Graphic Health Warnings on Tobacco Products;
• RA 10644, An Act Promoting Job Generation and Inclusive Growth Through the Development of Micro, Small, and Medium Enterprises; and
• RA 10640, which amends the Comprehensive Dangerous Drugs Act of 2002.
The new law that further opens up the banking sector amends RA 7721, which was enacted in 1994 and sanctioned the entry of a limited number of foreign banks.
Mr. Coloma said RA 10641 would address “the realities the country has to face with the integration of regional economies in 2015,” where the banking sector would play a crucial role.
The Bangko Sentral ng Pilipinas has expressed support for the law and last Friday, central bank Governor Amando M. Tetangco, Jr. urged domestic banks to become more competitive given the changing environment.
Deputy Governor Nestor A. Espenilla, Jr. yesterday said the new law would help “draw in more foreign direct investments that will generate more jobs. It will also make available more loans. Competition is likewise expected to improve quality of banking services, promote greater efficiency, and introduce more innovations.”
Henry J. Schumacher, executive vice-president of the European Chamber of Commerce of the Philippines said: “ECCP welcomes this liberalization of the financial sector for three reasons: more competition is good for everybody; it comes in time for the establishment of the Association of Southeast Asian Nations economic community; and this opening will hopefully challenge those banks that have been reluctant to finance the farming community and the millions of Filipinos who have not been bankable so far.”
Under RA 10642, meanwhile, car buyers will be allowed to secure refunds or vehicle replacements if an automaker is unable to address defects within a 12-month warranty period.
Not covered by the so-called lemon law are defects arising from consumer non-compliance with warranty obligations; unauthorized modifications; abuse or neglect of the vehicle; and damage due to an accident or force majeure.
Rommel R. Gutierrez, president of the Chamber of Automotive Manufacturers of the Philippines, Inc., yesterday said: “We welcome the passage of RA 10642. This is good for the consumers and the automotive industry.”
“With this law, the interests of both the consumers and car manufacturers/assemblers and distributors are protected. Consumers’ knowledge of their rights and limitations ... will also enable the automotive industry players to better serve their customers,” he added.
The Graphic Health Warning law, meanwhile, mandates that half the space of cigarette packaging be devoted to advisories on the dangers of smoking. In 2012, Mr. Aquino approved higher taxes on so-called sin products made from tobacco and alcohol, also citing the need to improve Filipinos’ health.
RA 10640, which introduces amendments to the Comprehensive Dangerous Drugs Act of 2002, allows apprehending teams to have initial custody and control of the drugs and instruments seized, while RA 10644 is expected to help promote the administration’s stated aim of inclusive growth.
Source: Business World, 21 July 2014
In close partnership with government, businesses, civil society, and academia, ECCP passionately works to enhance the business environment for both European and Filipino companies.