Trade Secretary Ramon Lopez. (File photo)
MANILA – The Department of Trade and Industry (DTI) on Tuesday said the proposal to remove the economic restrictions in the 1987 Constitution would help “unleash” the economic potential of the Philippines, the second-fastest growing economy in Southeast Asia.
During the hearing of the House Committee on Constitutional Amendments, Trade Secretary Ramon Lopez said the department welcomes efforts to remove economic restrictions and any barriers that limit foreign participation in investments and economic activities either through a Charter change or the enactment of laws.
“Our economy has been recognized as the second fastest growing economy in Southeast Asia until the year 2019, right before the pandemic struck, with average growth of 6 percent for 14 consecutive quarters,” Lopez said. “We also know that such growth rates could even be higher if we were able to remove basic restrictions, such as the foreign ownership of businesses in certain sectors stipulated in the Constitution.”
Lopez said that prior to the pandemic, the department already had 90 investment leads or serious investors that had already decided to set shop in the Philippines.
He, however, noted that this number was only half of the investors the country could have attracted if the economy was less restrictive.
Resolution of Both Houses No. 2 aims to amend certain economic provisions of the Charter, particularly Articles XII (National Patrimony and Economy), XIV (Education, Science, Technology, Arts, Culture and Sports) and XVI (General Provisions).
The measure seeks to insert the phrase “unless otherwise provided by law” to several sections of the Constitution, which restrict foreign ownership of land, natural resources, public utilities, educational institutions, media, and advertising.
During the hearing, committee chair Alfredo Garbin allayed doubts over the intention to amend the economic constitutional provisions which, he said, was to “help the economy recover from the effects of the Covid-19 pandemic.”
“Ang sentro lamang po ng discussion ay strictly economic provisions. Wala pong term extension, wala pong lifting of term limits, wala pong political provisions, (The focus of this discussion is strictly on economic provisions. There would be no term extensions, no lifting of term limits, no other political provisions),” Garbin said.
A number of economists agreed that lifting foreign investment restrictions could improve foreign direct investment or FDI inflows into the Philippines, particularly in areas restricted in the Constitution.
Relaxing the economic Charter provisions, they said, would open the door to establish a platform for promoting stronger investments and a more inclusive economic development. (PNA)
