towards Kenneth Christian L. Basilio, Reporting
The Philippines’ finance and the Departments of social and economic planning are supported again to amend the new constitution to amend the constitution of 1987, it means that the changes were needed to ease the investment money to encourage foreign capital to develop the capital of west Asia.
The government wants to attract more foreign capital by creating foreign economic reforms, and the change of the charter (Cha-Cha) can help draw the capital and economic conditions of the economy around the world, said the official of the Department of Finance (DOF) on Wednesday.
“We are at a stage where we want to encourage foreign investment with these liberal changes that we have done in the past,” Undersecretary and economist Domini S. vElasquez told lawmakers in the hearing. “Unfortunately, we haven’t seen much of the fruits of these freedoms and incentive changes due to uncertainty in the global environment.”
The Philippines is hard pressed to attract foreign investment to boost jobs and finance development projects.
Foreign direct investment (FDI) in Southeast Asia increased by less than 230 million dollars in 2023, the Association of Southeast Asian Nations (ASEAN) said in a 2024 report. For the total amount, the Philippines attracted $ 9.5 billion, only better than Malaysia ($ 8.8 billion), Thailand ($ 4.5 billion), Laos ($ 1.8 billion) and Laos ($ 1.8 billion). Manila’s capital inflow is placed behind Singapore ($159.6 billion), Indonesia ($21.6 billion) and Vietnam ($18.5 billion).
Department of Economy, Planning and Development (DepDev) Director Judith v. Gondra said that certain provisions of the Philippine Constitution interfere with overseas operations, resulting in domestic industries going under.
“Those who prevent the ownership, management, and control of certain businesses and activities have contributed to low investment in other countries, the closure and burning of large international businesses in the country,” he told the same comba situation. “These economic restrictions, in turn, have led to limited access to economic and social opportunities and the proliferation of highly concentrated markets.”
The Constitution caps foreign ownership of key industries at 40%, requiring that the remaining 60% be held by Pilipinos.
“The proposed amendments will also allow flexibility in the Constitution to respond to other political, economic, social, technological, legal, and social shocks,” said Ms. Gondra.
The move to amend the 38-year-old Constitution has become a recurring theme in Philippine Politics, and petitioners often press for the provision of public utilities, education, mass media and the exploitation of natural resources that they say limit foreign investment.
But previous efforts have been stymied by a lack of public and senate support, driven in part by concerns about political agendas. Constitutional amendments have long been a divisive issue, with almost every administration throughout the 1980s trying to revise parts of the charter.
The house passed a resolution in 2023 sponsoring a constitutional convention, and a year later, it negotiated a series of amendments with Congressional Comparators. The Signature Drive to support Cha-Cha has also been fueled by allegations that lawmakers were behind the plan.
Last year, Congressmen brought full-fledged debates, which are widely seen as the Marcos Adsurication Adsurication Adsurity Push for absences assestions until now.
The House Constitutional Amendment Committee presents several proposals for Cha-cha, ranging from limiting foreign ownership and strengthening national claims in the South China Sea to lowering the minimum age of the President and Vice President and clarifying the laws of impeachment.
Removing proprietary industries from foreign investment will make the country more attractive to investors and move entry into the areas, Katarina Gabrielle V. COSALAN, who will hear the same of Conmession.
“Consolidation of authority in Congress to eliminate, or at least reduce, these restrictions will pave the way to attract FDIS to the Philippines,” he said. “Openness of foreign ownership is an important criterion that investors look at when measuring the quality of the market.”
But it can take more than just opening the economy to investors to attract foreign capital, with the support of wider institutions and the support of a powerful institution that is visible as there is a need to develop, said PepDev, who guided the economic expert, said.
“Raising foreign financial participation alone will not solve the country’s weak position by attracting foreign equity, as it is one of the critical issues we need to face,” he said.
“There are many factors, such as a predictable investment environment, market size, and the level and quality of infrastructure, peace and security, our tax regime and political institutions,” he added.
