The Good and the Bad of JFC's Unrestricted Foreign Ownership

Published on: February 13, 2025

Change in Foreign Ownership Limit (from 40% to "No Limit")

Jollibee Foods Corporation (JFC) has announced that the Philippine Stock Exchange (PSE) has approved the removal of its 40% foreign ownership limit, effectively allowing unrestricted foreign ownership of JFC shares.

The Good: Growth, Investment, and Expansion

1. Increased Foreign Investment Inflow

With no restrictions, foreign investors can now freely invest in JFC shares, increasing capital inflows, liquidity, and potential stock value appreciation.

2. Strengthened Philippine Stock Market

JFC, being a key stock in the PSE Index, is expected to attract more global investments, making the Philippine stock market more competitive.

3. Greater Global Expansion Opportunities

JFC can raise additional capital for its international expansion, invest in advanced technologies, and strengthen its market position globally.

4. Economic Growth and Job Creation

More investments mean more job opportunities for Filipinos and increased contributions to the national economy.

The Bad: Risks and Concerns

1. Risk of Foreign Control Over a Filipino Icon

With unrestricted foreign ownership, there is a risk that foreign entities may dominate decision-making, affecting JFC’s long-term strategic goals.

2. Capital Flight and Profit Repatriation

A significant portion of JFC’s profits could be sent abroad instead of reinvesting in the local economy.

3. Stock Price Volatility

While increased investment might boost stock prices in the short term, it could also lead to volatility due to rapid foreign buy-ins and sell-offs.

4. Nationalistic Concerns and Policy Uncertainty

There could be growing debates over national economic control and concerns about further foreign ownership liberalization in key sectors.

Conclusion: A Bold Move with High Stakes

JFC’s decision is a game-changer in the Philippine stock market, opening the door for global investments. While this may bring growth and expansion, it also raises concerns about control, volatility, and economic implications.

As the company moves forward, balancing local interests with global expansion will be key to maintaining JFC’s status as a proud Filipino brand.