Mastering Your Craft: Beyond Experience to True Expertise

“Expertise is the wisdom that comes not from age, but from learning and refining your craft.” This insightful saying underscores a fundamental truth in the professional world: true expertise transcends the mere passage of time. It’s about a deep, unwavering commitment to excellence, a journey characterized by deliberate focus and the continuous refinement of one’s skills.

Understanding the Depth of Expertise vs. Experience

Expertise is not a function of time but the depth of understanding and skill in a specific area. It involves a process of continual learning, innovation, and a commitment to pushing boundaries. This contrasts with mere experience, which is often quantified in years but may lack the depth and quality that signify true expertise.

The Plateau of Experience: A Hidden Trap

Professionals across various sectors can unwittingly hit a plateau where routine disguises itself as competence. This phase can hinder growth, as it often conceals the necessity for ongoing learning and skill development. Recognizing and overcoming this plateau is crucial for anyone aspiring to reach the pinnacle of their profession.

Debunking the Experience Equals Skill Myth

In the dynamic landscape of today’s industries, equating experience with skill is a common but flawed perception. Experience, while foundational, does not automatically confer expertise. The hallmark of true expertise lies not in the years spent in a field but in the quality of work and depth of understanding.

The Invaluable Journey to Developing Expertise

The path to expertise is invaluable and open to all. It involves a cycle of learning, unlearning, and relearning, constantly challenging oneself, and embracing the unknown. This journey is a testament to dedication and passion, where each step forward brings you closer to mastering your craft.

For those starting their journey, feeling overshadowed by a lack of experience, remember: every expert was once a beginner. Do not be deterred by a perceived lack of experience. Instead, seize every opportunity to learn and grow, knowing that the path to expertise is open to those who choose to walk it.

The Ultimate Measure of Expertise: Tangible Outcomes

Expertise is ultimately measured by the ability to apply knowledge effectively, bringing about meaningful change and solving complex problems. It’s about what you can achieve with your knowledge, how you can transform it into tangible, impactful outcomes.

The pursuit of expertise is a journey of continuous improvement, where the focus is on cultivating depth and embracing learning at every step. It’s about measuring growth not in years but in the quality and impact of your work. Let this pursuit be your guiding light, encouraging you to strive for progress, not perfection.

This journey to expertise is open to everyone, inviting you to step beyond the confines of experience and embark on a path of true mastery in your field.

Unlocking Singapore’s Business Appeal

In recent years, Singapore has emerged as a thriving business hub, drawing entrepreneurs and corporations from around the world. Here, we briefly explore what makes Singapore an attractive destination for company incorporation, why more individuals and businesses are choosing the “Lion City” for their entrepreneurial endeavors.

Top 10 Reasons:

  1. Strategic Location: Singapore is strategically located in Southeast Asia, making it a gateway to the rapidly growing Asian markets. Its proximity to countries like China and India has made it a hub for businesses looking to tap into these markets.
  2. Ease of Doing Business: Singapore is known for its business-friendly environment. It has a streamlined regulatory framework, efficient bureaucracy, and a strong legal system. Starting and running a business is relatively straightforward.
  3. Tax Benefits: The city-state offers attractive tax incentives for businesses, including low corporate tax rates and double taxation treaties with many countries. There’s also no capital gains tax.
  4. Political Stability: Singapore is known for its political stability and strong rule of law. This provides a secure environment for businesses to operate in.
  5. Financial Hub: Singapore is a global financial hub with a well-developed banking and financial sector. Access to finance and capital is relatively easy for businesses.
  6. Talented Workforce: The country has a highly skilled and diverse workforce. English is widely spoken, which makes it easier for international businesses to operate.
  7. Infrastructure: Singapore boasts excellent infrastructure, including world-class ports, airports, and connectivity. This is crucial for businesses involved in trade and logistics.
  8. Innovation and Technology: The government of Singapore actively promotes innovation and technology adoption. There are numerous programs and incentives for companies involved in these sectors.
  9. Quality of Life: Singapore offers a high quality of life, which is attractive for both businesses and their employees. It’s a safe and clean city with good healthcare and education systems.
  10. Global Connectivity: Singapore has a well-connected airport and seaport, making it easy to travel and transport goods internationally.

    Singapore’s appeal as a destination for company incorporation goes beyond its geographical location. From a legal standpoint, it offers a secure, transparent, and supportive business environment that empowers entrepreneurs and businesses to thrive. With its strategic advantages and legal foundations, it’s no wonder that more individuals and enterprises are choosing Singapore to realize their business aspirations.

Incorporation Process

The process of company incorporation in Singapore begins with a preliminary assessment to understand the specific business objectives and requirements. This is followed by selecting an appropriate legal structure, such as a private limited company or subsidiary, considering factors like liability and ownership. The incorporation mainly involves:

  1. Reserving and registering a business name in line with Singapore’s regulatory requirements.
  2. Preparing essential legal documents, including the Memorandum and Articles of Association, alongside ensuring compliance with corporate governance requirements, such as appointing directors and shareholders.
  3. Singapore law also mandates setting up a registered office address and appointing a local agent for foreign companies.

All necessary documents are submitted to the Accounting and Corporate Regulatory Authority and other relevant authorities, including applications for permits and licenses. Tax planning and compliance, including the application for tax identification numbers, and intellectual property protection are also major considerations.

Renewal of ACR I-Card

Renewal of ACR I-Card for Foreign Nationals: Quick Guide


Renewing your ACR (Alien Certificate of Registration) I-Card as a foreign national in the Philippines?Staying compliant with immigration regulations is vital for a smooth and hassle-free stay in the country. Renewing your ACR I-Card is a necessary step for various reasons:


  1. Expiration of Card Validity: As a foreign national, you must be aware of the one-year validity of your ACR I-Card. Renewing it in a timely manner is essential to maintain your legal status in the Philippines.

  2. Re-registration for Minors: If you initially registered as a minor and have since reached the age of 14, it is mandatory to renew your ACR I-Card to update your status accurately.

  3. Change of Visa Status: Any change in your visa status during your stay requires you to renew your ACR I-Card to reflect these changes accurately in your documentation.

  4. Replacement Requirements: The Alien Registration Act of 1950, as amended, outlines specific situations that may necessitate the replacement of your ACR I-Card. Familiarize yourself with these requirements to ensure you are prepared for any such circumstances.


Where to Apply?

Renewing your ACR I-Card can be done at the Bureau of Immigration (BI) Main Office (in Intramuros Manila) or at any other authorized Immigration Office. For your convenience, we have provided a list of authorized offices where you can process your renewal.


What to Bring?

To ensure a smooth renewal process, gather the following essential documents and items:

  1. Checklist with Complete Documentation: Stay organized by using a comprehensive checklist of all the required documents, making sure you have everything in order. Also make sure to copy every page of your passport (in color).

  2. Application Form: Obtain the prescribed application form and meticulously fill it out, providing accurate and up-to-date information.

  3. Bring a few extra copies of your documents, legal folders, and a black ballpoint pen. Make sure to dress smart (at least closed shoes, long over-knee shorts, and no sleeveless shirt).


How to Apply?

Follow these step-by-step instructions to successfully renew your ACR I-Card:

  1. Complete Your Application: Obtain the appropriate application form and attach all the required supporting documents as per the checklist.

  2. Document Submission: Present your application along with the complete set of required documents to the designated immigration office.

  3. Database Check: Your submitted information will be cross-checked against the immigration database to ensure there are no derogatory records associated with your profile.

  4. Payment Process: Upon review, you will receive an Order of Payment Slip (OPS) detailing the fees required for the renewal process. Ensure timely payment of these fees.

  5. Receipt Submission: Submit a copy of the Official Receipt as proof of payment.

  6. Approval and Card Printing: Once your application is thoroughly evaluated and approved, the Bureau of Immigration will proceed to print your renewed ACR I-Card.

  7. Claim Your Card: To receive your renewed ACR I-Card, simply present the claim stub and your identification (ID) card.


Cost Breakdown

Understanding the financial aspects of renewing your ACR I-Card is essential. Here’s a breakdown of the fees involved:

  • I-Card Fee: US$50.00 (can be paid in PHP)

  • Express Lane Fee: PHP 500.00

Staying compliant with these renewal guidelines ensures your continued legal residency in the Philippines. The ACR I-Card is a crucial document that certifies your adherence to immigration regulations during your stay.


It’s not necessary for you to appear in person for the renewal. If you’re busy or too far away from your next BI office, we can help you.


If you have any questions or need further assistance with ACR I card or 13a visa, feel free to write us.

Get in touch today.

Title photo by © Vyacheslav Argenberg / http://www.vascoplanet.com/, CC BY 4.0 https://creativecommons.org/licenses/by/4.0, via Wikimedia Commons

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Government Right of Way Acquisition and Compensation (Quick Facts)

What is the law applicable on right-of-way acquisition and compensation in the Philippines?

  • Republic Act No. 10752 and its implementing rules and regulations, among others.

Where should I file my claim for right-of-way compensation?

  • First, determine which government agency or local government unit is implementing the project and then reach out to that office to check which division is in charge of the right-of-way claim processing.

How much should I get paid for my property?

  • You get compensated for the affected portion, which does not necessarily mean the entire property. The price offer for negotiated sale is based on the sum of the following:

    • the current market value of the land

    • the replacement cost for structures and improvements

    • the current market value of the crops and trees

When is the time of taking and why is it important?

  • Time of taking is at the time of filing of expropriation complaint by the government or at the time of actual taking/possession of the property by the government, whichever comes first. It is important because the amount of just compensation is based on the price computation at the time of taking.

Can I stop the government infrastructure project?

  • No. Republic Act No. 8975 prohibits this to ensure the expeditious and efficient implementation and completion of government infrastructure projects thus avoiding unnecessary increase in construction, maintenance and/or repair costs. No court, except the Supreme Court, shall issue any temporary restraining order, preliminary injunction or preliminary mandatory injunction against the government, or any of its subdivisions, officials or any person or entity, whether public or private, acting under the government’s direction, to restrain, prohibit or compel the following acts:

    • Acquisition, clearance and development of the right-of-way and/or site or location of any national government project;

    • Bidding or awarding of contract/project of the national government as defined under Section 2 hereof;

    • Commencement, prosecution, execution, implementation, operation of any such contract or project;

    • Termination or rescission of any such contract/project; and

    • The undertaking or authorization of any other lawful activity necessary for such contract/project

Can the government take my property without compensation?

  • No private property shall be taken for public use without just compensation as provided in the Philippine Constitution, unless duly agreed to by the owner.

Why was I offered the BIR zonal value in the letter offer instead of the market value of the affected property?

  • In the previous right-of-way law, price offer in cases of negotiated sale is based on BIR zonal value and not on market value. Take note that as a general rule, the effective law at the time of government taking is applicable.

Why an expropriation case has been filed against me without letter offer?

  • Although a letter offer is usually required before filing an expropriation case, the government may immediately resort to expropriation in the following cases:

    • Failure to provide proof of ownership or submit any requirement

    • Property owners are unknown, unidentifiable or cannot be located

    • Two or more opposing parties are claiming compensation

    • Such other instances when negotiated sale is impracticable

What shall I do when the government has filed an expropriation case for my property?

  • If there are no opposing claimants, you can go to court for the release of the amount deposited by the government agency and/or proceed with the determination of just compensation by the court.

The project has already been completed but I was not compensated. Can I file a case in court?

  • For completed projects, an inverse or reverse expropriation case in court may be instituted. However, as a general rule, demand for payment from the government agency concerned is required under the principle of exhaustion of administrative remedies.

I have submitted all the requirements for my right of way claim but the government is unable to settle immediately.

  • Lack of government funding is one of the reasons why property owners are not paid on time. Also, belated submission of requirements may require a different budgeting procedure, especially when the funds have already expired and are not utilized within the period set by law. Congressional approval of the budget may still be necessary. Also, note that proper verification and validation of claims must be conducted by concerned government units.

 

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How to Claim Road Right of Way or Just Compensation from the Government (Without Going to Court)

When the government acquires private property to be used as right of way for infrastructure projects, it is required under the Philippine Constitution that property owners be paid just compensation.

 

However, some property owners find it hard to claim compensation from the government, and worse, few owners end up not receiving compensation due to lack of legal guidance.

 

Republic Act No. 10752 requires offer to pay based on market value.

Property owners should know that the new law on right of way or Republic Act No. 10752 was enacted to make it easier for them to be compensated. A court proceeding is not always necessary. In fact, it is required under the new law that concerned government agencies submit an offer to the property owner and informing him of the amount of compensation that will be paid. This compensation offered shall be based on market value.

 

 

Negotiated sale is the preferred mode of right of way acquisition over expropriation as this would avoid filing a case in court.

If donation is not feasible, negotiated sale for the acquisition of the property shall be pursued based on the provisions of RA 10752 and its implementing rules.

 

Here are the relevant steps that must be undertaken by the government in acquiring titled private properties via negotiated sale:

 

  1. Prepare and send the notice of taking to each property owner, which shall state the following:

 

    • The property will be acquired for a government infrastructure project

    • The property may be acquired through negotiated sale

    • No government agency or local government unit shall allow any development or construction within the right of way within two years from the date of the notice of taking

 

    • If the owner refuses or fails to submit proofs of ownership i.e. property title and two (2)valid identification cards, the implementing office shall initiate expropriation proceedings

2. Once the owner submits proof of ownership, the implementing office shall formally send a letter offer of compensation price based on the sum of the following:

 

    • the current market value of the land

    • the replacement cost for structures and improvements

    • the current market value of the crops and trees

3. To determine the appropriate price offer for the right of way via negotiated sale, the implementing office may engage Landbank or Development Bank of the Philippines, or independent property appraisers accredited by the Bangko Sentral ng Pilipinas

 

4. If the owner does not accept the price in the letter offer within thirty (30) days, the implementing office will initiate expropriation proceedings with the appropriate court.

 

5. If the owner accepts the price in the letter offer within thirty (30) days, the implementing office shall secure from the owner all appropriate documentary requirements for the right of way claim.

 

6. After verification, Deed of Absolute Sale will be executed and first payment shall be made.

 

7. Second and final payment will be made at the time of the transfer of the title in the name of the Republic of the Philippines, in case the land is wholly affected, or at the time of the annotation of this Deed on the title, in case the land is partially affected, provided that the land is certified to be completely cleared of structures, improvements, crops and trees.

 

Complete documentary requirements shall be submitted by the property owner. The following are the usual documentary requirements for just compensation or right of way claims:

 

    • Owner’s duplicate of the Original/Transfer Certificate of Title

    • Tax Declaration of the parcel of land

    • Tax Declaration of the improvements (except for informal settler-owners)

    • Subdivision Plan of the parcel of land

    • Tax Clearance or, if the landowner requests the implementing office to advance the payment of Real Property Taxes to be deducted from the payment, a Statement of Tax Account from the Treasurer of the LGU concerned

    • Copies of two (2) valid identification cards

    • Owner’s Taxpayer Identification Number (TIN)

    • If applicable, where the improvement owner is different from lot owner and is authorized to build on the land, a certification from the lot owner that the improvement built therein is owned by the improvement owner

    • If applicable, where the improvement owner is an informal settler, any document showing that he is a Filipino citizen; a certification from the Land Registration Authority that there is no property registered under his name, whether in an urban or rural area; a certification from the Local Inter-Agency Committee (LIAC) that he is not a professional squatter or a member of a squatting syndicate, as defined in Republic Act No. 7279, otherwise known as the “Urban Development and Housing Act of 1992” and does not occupy an existing government right of way.

    • If applicable, Special Power of Attorney

    • Other documents that may be found necessary by the implementing office to ensure transfer of the property to the Republic of the Philippines

 

 

Note that prior to payment, right of way claims shall be screened, fully verified and validated. There are also instances when the government is constrained to resort to expropriation despite owner’s acceptance of the price offer due to incomplete documentary requirements or fraudulent submissions.

It is also important to understand that the above process applies to right of way claims with ongoing right of way activities and pertains to titled or registered properties. Moreover, if the government is already in possession of the property, a court proceeding may be more appropriate.

 

Source: RA 10752 & DPWH Right of Way Manual

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9 Things Every Investor in the Philippines Should Know

While it has faced economic difficulties recently, the Philippines is receiving growing attention in the international investment community. The country was recently named a Next Eleven (N-11) economy by Goldman Sachs – a group of countries with the economic potential to rival current G7 nations. And the recent surge in foreign direct investments (FDI) within the Philippines, which rose from PHP36.49 billion in 2020 to PHP133.4 billion in 2021, is indicative of that potential. 


Consequently, amid the renewed investment attention in the Philippines, it’s worth noting important considerations foreign investors should bear in mind as they explore opportunities within the country.


1. Investment regulatory and promotion bodies 

The Philippines has several regulatory agencies responsible for regulating and promoting foreign investments within the country. Therefore, knowing these bodies and their sphere of operation will be vital to understanding the investment process in the country and the appropriate steps to take. Regulatory bodies in the Philippines include the Bangko Sentral ng Pilipinas (BSP), the country’s Central Bank, and the Bureau of Internal Revenue, tasked with taxing the proceeds of investment activity within the country. 

The country also has several investment promotion authorities, whose responsibility includes designing and executing measures to attract and enable foreign investments in the Philippines. The principal organizations are the Philippine Economic Zone Authority and the Philippine Board of Investments. 


Other regulatory and investment promotion bodies in the Philippines include the National Economic Development Authority, the Philippines Securities and Exchange Commission (SEC), and the Bureau of Immigration.


2. Regulation of foreign investments 

The next important point to note is that, while the Philippines actively welcomes investment from foreign nationals, not all sectors within the country are open to FDI. Some sectors are available only to Filipinos, while investment in others is subject to specified limits. For example, retail trade with paid-up capital less than PHP25 million is reserved for only Philippine nationals. 

Generally, the Philippines Foreign Investment Act of 1991 specifies how foreign nationals may participate in the country’s economy and to what extent. The Act stipulates a Foreign Investment Negative List, which states businesses in which foreign nationals may not participate at all or in which they can contribute up to 40% equity. This list is required by law to be updated every two years, and pursuant to this, the President of the Philippines recently signed Executive Order 175 on 27 June 2022, updating the list. 


3. Regulatory transparency in the Philippines 

As is clear from the above, business investments in the Philippines may not always be straightforward, mainly due to the extensive Negative List. To relieve potential complexity in the applicable regulations, the Filipino government has implemented measures for increased transparency and visibility of the law. 


For instance, all proposed laws and regulations in the country must be published online and in newspapers/the official gazette before being finalized. Likewise, draft laws must be available for public comment and review. And where the public requires further information about the laws or government activities, anyone may submit a Freedom of Information (FOI) request, with certain exceptions. You’ll see draft laws published on the Philippines government’s official website, while FOI requests may be submitted through the FOI website.


4. Applicable business structures

After determining your preferred investment opportunity, it would be necessary to consider the type of business structure that best fits the circumstance. There are various business structures to choose from, including a domestic corporation, branch office, representative office, or regional operating headquarters. The SEC registers and supervises all business structures within the country. 


In deciding amongst the available business structures, it’s essential to consider the scope of intended operations, capital requirements, and potential tax liability. For instance, a domestic corporation or branch office may be better for investors looking to carry on full business operations in the Philippines. Likewise, a branch office can be more tax-efficient than a domestic corporation, as it is taxed strictly on its Philippine-sourced income. 


5. Taxation of investments and income 

Speaking about taxation, learning the applicable tax rates and obligations within the country should be a top priority. Until recently, the Philippines charged a 30% corporate income tax rate – the highest of all ten Association of Southeast Asian Nations (ASEAN) tax rates. 


However, to attract more foreign investments, the government passed the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act which introduced welcome tax reforms. Under the CREATE Act, the government has now reduced the corporate income tax rate to 25% for large companies and 20% for small and medium companies. The country also reduced the minimum corporate income tax rate to 1% from 2%. Although, Valued-Added Tax (VAT) on the consumption of goods and services continues to be charged at a 12% rate


6. Incentives for business investments 

Certain companies may qualify for tax incentives if their business falls within activities sanctioned under the Philippines government’s Investment Priorities Plan (IPP). The IPP is an annually-released document detailing economic activities and sectors the government has targeted for fiscal incentives. The purpose is to encourage investment and business activities within those sectors to stimulate growth. Any company operating within the sectors listed under the IPP may apply to an Investment Promotion Agency to seek and obtain the relevant incentives. 


Additionally, the CREATE Act has instituted a new incentive system that rewards long-term investments in advanced sectors and developing areas. For example, companies in advanced industries or less developed regions may obtain incentive periods of up to 17 years.


7. Ease of doing business 

In recent years, the Philippines has begun to cultivate a business and regulatory environment conducive to business. In line with this commitment, the government passed the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. In addition, the Act amended the Anti-Red Tape Authority (ARTA) Act which empowers the ARTA to enforce standardized government processes, a one-stop shop, and online processing of licenses and approvals. 


The government’s efforts are already paying dividends. Since these enactments, the Philippines’ ranking in the Ease of Doing Business Index has significantly improved – shooting the country up by 29 notches from 124 to 90.

 

8. Legal investment opportunities 

For investors unsure about the legality or otherwise of specified investment opportunities, the Philippines SEC provides important advisory information worth noting. From time to time, the SEC publishes on its website advisories regarding specific investments, informing the public about those investments’ legal and registration status.


You may access the SEC’s advisory page here. The page also includes historical information relating to advisories issued on prior investments in past years. In addition, you can view advisories issued as far back as 2011 on the platform. 


9. Potential for cryptocurrency dealings 

Lastly, investors interested in pursuing potential cryptocurrency investments would be interested to note that the Philippines government provides some regulation in this sector. Owning and trading in cryptocurrency is legal in the Philippines, although crypto coins are not considered legal tender in the country. Under the 2021 Guidelines for Virtual Asset Service Providers (VASPs) released by the BSP, crypto exchanges and other virtual asset providers must adhere to regulatory requirements designed to protect investors. Additionally, the BSP maintains a list of registered cryptocurrency exchange platforms licensed to operate. You may access the list here.

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Supreme Court: Converting to Islam to marry a second spouse is bigamy.

Conversion to Islam to remarry and circumvent the laws on bigamy generates legal tensions as it exploits the protective mantle of religious freedom under the Constitution.

The absence of divorce law and the time and expense needed for a declaration of marriage nullity sometimes constrains couples to explore other options. 

However, people should be wary of resorting to other methods which could lead to criminal prosecution like in the recent Supreme Court case Malaki and Salanatin-Malaki vs. People of the Philippines (G.R. No. 221075. November 15, 2021). Read the full text here.


A person who converts to Islam and then contracts a second marriage while the previous one remains legally in effect will be accused of bigamy, said the Supreme Court.


This means that conversion to Islam in this scenario does not exempt one from criminal liability. Worse, the spouse in the subsequent marriage will also be liable for bigamy.


“A party to a civil marriage who converts to Islam and contracts another marriage, despite the first marriage’s subsistence, is guilty of bigamy. Likewise guilty is the spouse in the subsequent marriage.” “This Court should not condone practices which circumvent laws in the guise of preserving culture”.


The crime carries a penalty of imprisonment of up to 12 years. 

Parties cannot avoid liability by arguing that the Muslim Code governs because Article 13(2) of the Muslim Code expressly states that the Civil Code governs marriages where one or both parties are non-Muslims and the marriage was not solemnized in Muslim rites.

New Supreme Court Ruling: Philippine Contractors Accreditation Board v. Manila Water Company, Inc.

Foreign Firms May Now Undertake Infrastructure Projects in the Philippines under the Same Regular License as Filipinos

“While the Constitution mandates bias in favor of Filipino goods, services, labor and enterprises, at the same time, it recognizes the need for business exchange with the rest of the world on the bases of equality and reciprocity and limits protection of Filipino enterprise only against foreign competition and trade practices that are unfair. The Constitution did not intend to pursue an isolationist policy.”

These are the words of the Supreme Court when it declared certain provisions of the IRR of RA 4566 otherwise known as the Contractors License Law as void in Philippine Contractors Accreditation Board v. Manila Water Company, Inc., G.R. No. 217590, 10 March 2020. 


In effect, foreign firms may now undertake infrastructure projects in the Philippines under the same regular license as Filipinos. This is in line with Executive Order No. 65, series of 2018, which affirmed the importance of foreign participation in locally funded infrastructure projects by expressly allowing up to 40% foreign equity.


In PCAB v. MWC, the Supreme held that “PCAB went beyond the prescribed classifications under Section 16 of RA 4566 when it created a nationality-based license under Section 3.1 of the IRR. While Section 5 of RA 4566 authorizes PCAB to issue, suspend, and revoke licenses of contractors, this general authority to issue licenses must be read in conjunction with Sections 16 and 17 of RA 4566 as PCAB can not create substantial classifications between certain types of contractors.  Also, while RA 4566 allows PCAB to effect classifications, the same should be reasonable.”


“A contractor under RA 4566 does not refer to a specific practice of profession. The licensing of contractors is not to engage in the practice of a specific profession, but rather to engage in the business of contracting/construction. If RA 4566 and its IRR indeed viewed the construction industry as a profession and contractors as professionals whose practice may be limited to Filipino citizens, then the challenged provision runs contrary to such policy, as it would allow foreigners to operate with a regular license through a construction firm as long as their equity therein does not exceed forty percent (40%).”


Supreme Court also mentioned the case of Tañada v. Angara, 338 Phil 546 (1997), which emphasized that “the constitutional policy of a self-reliant and independent national economy does not necessarily rule out the entry of foreign investments, goods and services. It contemplates neither economic seclusion nor mendicancy in the international community.” 

You can read the full text of PCAB v. MWC here.


Prior this ruling, foreign contractors are required to secure a special PCAB license before they can participate in the public bidding of locally-funded infrastructure projects. As pointed out in PCAB v. MWC, securing a special license is way more challenging as compared to a regular license. In fact, this is one of the major issues faced by the Department of Public Works and Highways in the Bonifacio Global City – Ortigas Center Link Project. 

In May 2017, PCAB initially refused to issue special licenses to joint ventures or corporations with foreign ownership that can participate in the public bidding, which in turn may result to a bidding failure due to lack of qualified contractors for the said project.


DPWH addressed the issue by identifying relevant provisions of RA 9184, otherwise known as the Government Procurement Reform Act, and RA 4566, and their respective implementing rules. Back then, prior EO 65, foreign equity participation is only up to twenty-five percent (25%), save in cases where the structures to be built require the application of techniques or technologies which are not adequately possessed by a person or entity meeting the seventy-five percent (75%) Filipino ownership requirement.


Foreign investment undoubtedly plays an important role in the financing of the global economy and can be particularly vital to developing countries like the Philippines. And now that foreign firms may undertake infrastructure projects in the Philippines under the same regular license as Filipinos with EO 65 and this new Supreme Court ruling, more corporations, including those with foreign equity, may participate in public bidding and undertake locally-funded government infrastructure projects.

Bonifacio Global City - Ortigas Link as of 28 August 2020 https://www.facebook.com/SecMarkVillar