Advocates for the Philippine economy on Thursday, Jan. 4, called on the government to remove restrictive economic provisions on full foreign ownership in the Constitution.

Foundation for Economic Freedom Inc., a group composed of former finance secretaries and businessmen, said in a statement that some economic provisions restrict the development of economic areas in the country such as mass media and renewable energy.

“The existing economic constitutional restrictions limit investments that we need to develop our creative industries,” the group said.

“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.

A 60 to 40 equity rule states only 40 percent of businesses may be owned by foreign nationals while 60 percent go to Filipinos.

The group proposed to allow full foreign ownership of Sections 2, 3, 7, 10, and 11 of Article XII; Section 4 of Article XIV; Section 11 of Article XVI.

It also suggested revising Section 19 of Article II and Section 10 of Article XII proposing to give way to foreign investors that will provide an economy that will benefit all Filipinos.

“Removing the restrictive economic provisions would significantly improve the lives of Filipinos by attracting new foreign investments and fostering healthy competition,” it stated.

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

Despite liberalization laws being enacted, the group said that the country still lags behind its Southeast Asian neighbors in foreign direct investment inflows.

“Data as of 2022 indicates that Indonesia, Vietnam, Malaysia, and Thailand have surpassed the Philippines in attracting foreign direct investment,” it said.

Earlier, the government made amendments to the Republic Act 11659 or the Public Service Act which allows full foreign ownership of businesses in certain industries such as airports, railways, expressways, and telecommunications.

Before the approval of the amendments, foreign ownership in such industries was limited to 40 percent.

Amendments have also been made to the Foreign Investment Act and the Retail Trade Liberalization Act to attract more foreign investments and provide less strict requirements for potential foreign investors.

Further, the group also urged the legislative branch to remove the remaining restrictions on foreign participation in the rice and corn sector in Republic Act No. 3018 and Presidential Decree No. 194.