As Congress enters ‘constructive phase’ of economic reforms
Foreign businessmen on Monday and experts invited by a Senate panel tackling revisions to the 1987 Constitution welcomed the easing of restrictions on foreign direct investments through Charter change.
“We are of the opinion that the removal of economic restrictions in the 1987 Constitution would facilitate an increase in FDI (foreign direct investment) in sectors where such investments are currently restricted,” said Julius Payne, president of the Canadian Chamber of Commerce of the Philippines.
Payne, who spoke in the hearing on Monday chaired by Senator Sonny Angara, also said that foreign businessmen recognize it is also the “duty of the government to protect its national interest.”
Florian Gottein, Executive Director of the European Chamber of Commerce of the Philippines, reiterated that amending the Constitution is purely a Filipino matter.
He stressed that if the Filipino people decide to amend the Constitution, “we would actually be in favor of removing the economic restrictions from it.”
Gottein also noted that recent amendments to the Philippine Statistics Authority, Retail Trade Act, and FTA, but also the Department of Justice opinion on the implementing rules and regulations on the Renewable Energy Act, “have really created a more conducive business environment for foreign investors to come in.”
Congressional leaders, meanwhile, said the House of Representatives and the Senate are now in a “constructive phase” on economic charter reform.
“The discussion [on economic Charter Change] has started. This is it. This what the President is espousing: a healthy democratic discussion of our (constitutional) economic provisions,” Senior Deputy Speaker Aurelio Gonzales said at a news briefing.
“At this hour, the Senate is conducting the hearing [on Charter Change] and we hope it matches our discussion [at the Lower House] to pursue our dream of Charter change [focusing on] economic provisions,” Gonzales said in the briefing also attended by Deputy Speaker David Suarez, Ways and Means chair Rep. Joey Salceda, and Appropriations panel senior vice chairperson Rep. Stella Quimbo of Marikina City.
The President laid down his directive when he spoke at the Philippine Constitution Association (Philconsa) event celebrating Constitution Day 2024 in Makati City last Thursday, Gonzales noted.
Salceda said the House would henceforth be guided by the President’s statements on amending the Charter.
“Follow the President! This is the consensus among House members. The House will follow the President, period. So let there be no ambiguity about it, of the direction of the House,” he said.
Suarez said that as for the timeline, President Marcos said he wants the country to achieve middle-income status by 2025.
“When the President gave a date and a clear goal, it is up to the Legislative Branch to cooperate and to make sure that objective is met,” Suarez said, saying that the ideal time for the Senate to pass any measure that will amend the Constitution is within the next few months.
Quimbo, for her part, said members of the House need to engage with their counterparts in the Senate in meaningful debate when it comes to the need to amend the Constitution on its restrictive economic provisions.
“We can’t keep quiet because the problem we face is very important. Lack of work, lack of capital. If we do not act on this, our countrymen will continue to leave just to support their families,” she said.
Senator Grace Poe, chairperson of the Senate public services committee, however, rejected claims that the country has a “closed economy.”
She noted the great strides that have been taken in the past years in liberalizing the economy without compromising national security or putting Filipino businesses at a disadvantage.
“Would amending the public utilities provisions in our Constitution open the economy or open a can of worms? “ she asked.
Former Supreme Court Senior Associate Justice Sntonio Carpio, at the same hearing, noted that the Philippines, without amending the 1987 Constitution, has passed several laws to open the economy to 100 percent foreign ownership.
Carpio said the recently-amended Public Service Act reclassified several businesses as public services, open to 100 percent foreign ownership.
In particular, he said the amended PSA allows 100% ownership in telecommunications, air, sea and land transportation except Public Utility Vehicles and airports.
According to the retired justice, power generation “has always been open to 100% foreign ownership for the longest time.”