KOROR (Palau Horizon) – President Johnson Toribiong said the Senate committee handling the proposed measure that will make Palau more investor friendly will report out the bill soon.
Toribiong told reporters that the measure which has been pending before the Senate will be taken action in next week’s session.
The bill he said is being handled by the committee of Sen. Regis Akitaya.
The new Foreign Investment Act has been proposed to increase foreign investment and to create a simplified and objective process for applicants.
The new law reduces the minimum investment in Palau from $500,000 to $250,000.
The bill has been passed on third and final reading by the House of Delegates.
Toribiong said Compact negotiator Joshua Koshiba would have wanted the measure passed before the Compact review begins.
The measure will prescribe a new framework for foreign investment in Palau and to repeal the existing Foreign Investment Act.
Under the proposed measure, the approach will be transparent and will ensure a free market approach.
The measure will also require all other non-citizen investors to do business in Palau in the form of a corporation and it will not restrict non-citizens from conducting some business activities but will not totally exclude non-citizens as what the current law does
