Trade and Industry Secretary Alfredo E. Pascual said amending the economic provisions of the Philippine Constitution can open up more investments and trade opportunities into the country because it provides a permanent commitment of the government to foreign investors.
In television interview, Pascual explained that while the government has liberalized a lot of its investment policies citing amendments to the Public Service Act, Foreign Investments Act, Retail Trade Liberalization Act, and passage of the CREATE Law that grants incentives to investments, be he also stressed that these laws can be changed anytime.
Comparatively, he pointed out, “The Constitution sends a more permanent signal to investors, that is a foundation to government, so more credible or can provide greater comfort in terms of permanence and reliability of the commitment of the government with respect to foreign investments,” said Pascual.
One particular economic provision the DTI chief noted that could help in attracting more foreign investors is on land ownership.
Pascual, however, did not say the need to lift land ownership restriction, which is now limited to 60-40 (Filipino-foreigner) percent. But the DTI chief cited the need for a “clear provision on ownership restriction by foreigners.”
“I have not really examined the individual provisions that need to be reviewed, but there are questions on ownership of land. That can be very touchy, but the Constitution can provide a longer, like a clearer provision on leasehold for use of land in the Philippines,” he said.
The House of Representatives has shown determination to continue its discussion on amending the Constitution, but the Senate has not been keen on taking up the issue.
House Speaker Martin Romualdez, first cousin of President Ferdinand R. Marcos Jr., is among those pushing for an economic charter change.
Cagayan de Oro Rep. Rufus Rodriguez, who chairs the House Committee on Constitutional Amendments, also said his panel will continue to hold public hearings and consultations on charter change proposals.
At the Senate, however, Senate President Juan Miguel Zubiri cited President Marcos Jr.'s pronouncement that amending the Constitution is not among his priorities.
Zubiri said the issue of Constitutional amendment is “divisive” and would not want to touch on that issue.
Instead, Zubiri emphasized that the Senate should focus on economic recovery and pandemic rehabilitation. Other priority measures at the Senate concerns the ratification of the Regional Comprehensive Economic Partnership, creating a Philippine Center for Disease Prevention and Control, the revival of mandatory military training among the youth, and the Maharlika fund bill, among others.
Sen. Grace Poe also echoed Zubiri’s position noting that the president does not support charter change.
"These discussions scare away foreign investment and confuse the public as to whether charter change is just for political gain," Poe added.
Meantime, Sen. Alan Peter Cayetano said the charter change proposal is just an "additional distraction" amid economic concerns.
Cayetano further noted that the country requires "political maturity," especially since the Constitution has only been in force for three decades.
Senate Minority Leader Aquilino "Koko" Pimentel also echoed the President’s statement that foreign investments can still come in even without changing the Constitution.
"The proposal to change the economic provisions of the Constitution is not urgent at all as we have passed some economic liberalization laws," said Pimentel.
Pimentel cited the amendments of the Public Service Act, the Retail Trade Liberalization Act, and the Foreign Investment Act, among others, that should make the country more attractive to foreign investors.