MANILA – The Foundation for Economic Freedom (FEF) on Thursday said it would support moves to amend “restrictive economic provisions” in the 1987 Constitution.

• Marcos studying if Charter change needed to attract investments

In a statement, FEF said despite amendments to the Public Service Act, the Foreign Investment Act, and the Retail Trade Liberalization Act, the Philippines still lagged behind its neighbors in the ASEAN region in terms of foreign direct investment inflows.

Data cited by the Presidential Communications Office in October showed foreign investment approval by investment promotion agencies reached US$8.45 billion from January to June 2023, higher than the $1.06 billion recorded during the same period in 2022.

But the advocacy group said Indonesia, Vietnam, Malaysia, and Thailand still “surpassed the Philippines in attracting foreign direct investment.”

“It is crucial to emphasize that the Philippines is open to foreign investments, especially as one of the last countries where restrictions on foreign ownership are embedded in the Constitution,” FEF said.

“The existing economic constitutional restrictions limit investments that we need to develop our creative industries. Likewise, while investments in solar and wind energy have been liberalized, there is still a lot of uncertainty for foreign investors because of the 60/40 rule in investments in natural resources and ownership of land,” it added.

• House to push for charter change in 2024: Speaker

FEF suggested to “fully liberalize and lift” the following restrictions in the Constitution. It was better, it noted, if government will allow 100 percent foreign ownership over the following unless otherwise provided by law.

• Section 2, Article XII (National Patrimony and Economy)
• Section 3, Article XII (National Economy and Patrimony)
• Section 7, Article XII (National Patrimony and Economy)
• Section 10, Article XII (National Patrimony and Economy)
• Section 11, Article XII (National Patrimony and Economy)
• Section 4, Article XIV (Education, Science and Technology, Arts, Culture, and Sports)
• Section 11, Article XVI (General Provisions)
• Section 19, Article II (Declaration of Principles and State Policies)
• Section 10, Article XII (National Economy and Patrimony)

FEF said removing such restrictions in the Constitution would allow lawmakers to have “greater flexibility” in responding to the changing global and economic landscapes. It will also help adjust to the needs of the country’s economy.

“Increased foreign direct investments in currently restricted areas would generate higher-quality, higher-paying jobs, boost incomes, and expedite economic development. There is potential for substantial gain in liberalizing the Philippine economy,” the group said.

“Any delay in amending these economic provisions would hinder the opportunity for more inclusive growth and development for our people and the country,” it added.

This came after President Ferdinand Marcos, Jr. in mid-December said a study was being conducted to determine whether amending the 1987 Constitution would be necessary to make the country more investment-friendly.

Marcos gave the statement in response to a question on whether he supports some House leaders' fresh proposals to amend the 1987 Constitution this year.

In December, House Speaker Martin Romualdez bared plans to resolve the impasse that had kept Charter change proposals in limbo: a people's initiative that would let voters decide if congressmen and senators have to vote together or separately to consider proposals to amend the constitution.

Former and current senators have insisted that the two chambers vote separately to prevent the 24-man Senate from being overwhelmed by votes from the much larger House, which currently has over 300 members.

Critics warn politicians could use the charter amendment exercise to insert changes that would allow them to stay in power for longer.

Watch more News on iWantTFC