Various Philippine industries would be more attractive to foreign investors and could generate fresh capital if the restrictive economic provisions of the 34-year-old Constitution were amended, Albay Rep. Joey Salceda said Sunday.
He said such industries have a high return on equity, but their full potential is being hindered by the
Constitutionally mandated foreign equity restrictions.
“Transportation, 21.47 percent; railroads, 22.73 percent; financial services, 61.83 percent. Napakalaki ng ROE which invites competition,” he said.
ROE is a measure of the profitability of a business in relation to its equity or ownership of assets.
It measures how much profit can be generated in relation to a shareholder’s equity, which means the higher the ROE, the greater the return on one’s equity, thus making a business more attractive to investors, he said.
The other industries that Salceda cited were telecom services, cable television, farming and agriculture, brokerage and investment banking and investments and asset management.