THREE business groups back moves to amend the economic provisions of the 1987 Constitution, specifically lifting the foreign equity restrictions to attract more foreign direct investments (FDIs) into the country.
The European Chamber of Commerce of the Philippines (ECCP), Italian Chamber of Commerce in the Philippines (ICCPI), and American Chamber of Commerce of the Philippines (AmCham) all told The Manila Times via Viber that they back the Senate's initiative to amend the economic provisions of the Constitution, which has been standing since 1987.
"The ECCP welcomes reforms to reduce or remove foreign equity restrictions in the 1987 Constitution. This can help put the spotlight on the Philippines as a viable investment destination, attracting more investors and foreign professionals into the country," ECCP Executive Director Florian Gottein said.
He added that amending the economic provisions of the Constitution will improve the trajectory of the country in terms of ushering in more FDIs.
"The ECCP believes that sustained reforms, especially those addressing foreign ownership limitations, could further amplify these statistics. This, in turn, has the capacity to fuel further growth, job creation, income opportunities, and overall development," Gottein said.
However, he pointed out that the lifting of foreign ownership restrictions across different sectors is not possible, and that they are "receptive" to the proposal of inclusion of the phrase "unless otherwise provided by law" in the proposed changes to the economic provisions.
"This openness to flexibility in the regulatory framework ensures adaptability to evolving economic conditions, maintaining an environment that remains attractive to foreign investors," Gottein added.
Lorens Ziller, the executive director of ICCPI, said that amending the economic provisions of the Constitution will make the Philippines outpace its neighboring countries in terms of attracting FDIs.
"The amendment of the constitution is a very welcome act because it repairs the damage done by those investment limiting provisions of foreign ownership and would put the Philippines at par with other countries that are open for business," Ziller said.
The ICCPI director added that this kind of liberalization will make the country more open for investments in technology in the "sectors needed."
Ebb Hinchliffe, the executive director of AmCham, said that he will continue to support the lifting of the foreign equity restrictions in the Constitution.
"The Philippines is one of very few countries that have placed investment restrictions in its Constitution. Removing them from the Constitution will send the right signal to investors and provide the government flexibility to adjust policies as needed and to take advantage of economic opportunities," Hinchliffe added.
The proposal to amend the economic provisions of the Constitution was put anew in the spotlight after House Speaker Ferdinand Martin Romualdez said that the lower chamber would study how to amend the charter to better attract foreign investments.
The initiatives include exploring modes of Charter change that will not involve the Senate, where previous efforts to amend the Constitution have fizzled out.
For his part, President Ferdinand Marcos Jr. said that attracting investors to the Philippines was his "primary interest."
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