Department of Trade and Industry (DTI) Secretary Ramon Lopez buttressed the pro-Charter Change (Cha-Cha) movement in Congress big time during Tuesday's House Committee on Constitutional Amendments hearing.
Lopez, a resource person during the virtual hearing, said that removing the economic "barriers" in the 1987 Constitution would help the country lure more foreign investors.
“Eliminating these barriers will certainly unleash the high growth potential of the Philippines," Lopez told the House panel, which is chaired by AKO-Bicol Party-List Rep. Alfredo Garbin Jr.
“Our economy has been recognized as the second fastest growing economy in Southeast Asia until the year 2019, right before the pandemic struck, with average growth of 6 percent for 14 consecutive quarters. We also know that such growth rates could even be higher if we were able to remove basic restrictions, such as the foreign ownership of businesses in certain sectors stipulated in the Constitution,” the DTI chief explained.
"We therefore welcome the efforts—whether through a Charter Change or the enactment of laws—in removing these economic restrictions and any barriers that limit foreign participation in investments and economic activities,” he further said.
Taken up anew during the hearing was Resolution of Both Houses 2 (RBH 2), which proposes amendments to certain economic provisions of the existing Charter, particularly in Articles II, XIV and XVI. It was authored by Speaker Lord Allan Velasco.
Lopez shared to panel members that prior to the pandemic, the department already had 90 investment leads--serious investors that had already decided to set shop in the Philippines.
But the Cabinet official said the figure was only half of the investors that the country could potentially woo if the economy was less restrictive.
Although members of the government economic team did not immediately provide projections of the foreign direct investment (FDI) that would result from the lifting of restrictive economic provisions of the Constitution, House Ways and Means Chairperson and Albay 2nd district Rep. Joey Salceda shared figures that he had derived from consultations with economists and experts.
His estimates show that RBH No. 2 could lead to an additional average annual FDI of P330 billion pesos (US$6.8 billion) and generate 6.6 million jobs over a 10-year period.