Why Economic Recovery Should Not Cost Us Our Security
Democracy Watch supports the objective of Public Service Act (PSA) amendments bill of attracting in much need foreign investment into the country, foster competition, spur economic activity, and boost job creation amidst the pandemic. At the same time, however, we raise serious concern national security implications the measure may have on our country’s “critical infrastructure.”
We at Democracy Watch Philippines are among the many voices that time and time again have raised the alarm that amending foreign ownership rules— without the proper safeguards in place— could have security consequences for the country. If the limit on foreign ownership is lifted with our safeguard, what is there stop to companies controlled by authoritarian foreign governments, from increasing their control over the country’s critical infrastructure?
For instance, China Telecommunications could quickly increase its stake in DITO Telecommunity to 100 percent. And given Chinese laws that require Chinese companies, regardless of location, to cooperate with their intelligence and surveillance agencies, this create risks that cannot be ignored.
For this reasons, Democracy Watch supports the Senate’s version of the PSA bill that includes safeguard provisions not found in the House Bill. For instance, the national security council review of “critical infrastructure” and the ban of foreign state-controlled companies from investing in public services are important measures that help maintain national security.
Our economic recovery should not come at the expense of national security.