The signature gathering petition stated that the current bill pending before Congress will open up the entire private sector industry in Palau for foreign investment which local businessmen fear will force them to close shop.
The measure in question is House Bill 8-72-5 , the houseversion of the proposed changes in the Foreign Investment law was passed on final and third reading earlier. It is now pending before the Senate.
The measure is almost the same version President Johnson Toribiong introduced last year.
The measure also calls for the abolition of any existing law pertaining to foreign investment.
“Thus, in our capacity as citizen and business owners, we are extremely concerned about this bill, or any bill for this matter, that seeks to open up the entire business sector in Palau for foreign competition and humbly request that you kill the bill,” the petition said.
The local businessmen said that although they are not against the entire measure per se, the private sector cannot be opened entirely for foreign investment which will compete with the local businesses.
“Foreigners will simply replace us, the local businessmen, from our current businesses. Is this something that Palau wants? We certainly hope not. Rather, foreign investments should welcome into business sectors that Palauans are not capable of doing, the hotel bsuiness and others, but they should not come into businesses that Palauans are already capable of doing,” the petition said.
According to the measure, a non-citizen who has business interest is required to submit an application for the issuance of Palau Foreign Investment charter within 90 days.
Administrative responsibilities then will be placed with the Registrar of Corporation and a minimum investment of US$250,000 is required.
The measure stated that the investment may either be paid in cash or actual value of tangible assets.
The measure opens up business activities which are currentlyreserved exclusively for Palauans.
The current law reserves businesses such as retail sale of goods; all land transportation including bus services, taxi services and car rentals; handicraft and gift shops located at the premises of hotels or at the Palau International Airport; bakeries; tour guides, fishing guides and other form of water transportation activities and travel and tour guides for Palauans only.
The measure in questions also stated thatthe Registrar will be responsible for monitoring and supervising PFI Corporation and subject to the approval of the president, the registrar may promulgate rules and regulations to carry out its duties.
The foreign investment bill measure meanwhile introduced in the Senate calls for the creation of a Foreign Investment Authority which function is to advise and assist the President in the promotion and encouragement of foreign investment in Palau and to act as a liaison between Palau government agencies and private business in the promotion foreign investment in Palau.
President Johnson Toribiong in earlier interviews said that the United States government is pushing Palau to improve its foreign investment laws.
“Lawmakers should stop considering their self-interests but start worrying about job opportunities for Palauans,” Toribiong stated.
He said without the grant money from foreign donors, Palau will be a poor country.
