Albay 2nd district Rep. Joey Salceda answering questions during a press briefing. (Dexter Barro II, MANILA BULLETIN)

The Philippine stock market will feel the immediate impact of an improved economy if the proposed amendments to the “restrictive” economic provisions of the 1987 Constitution goes through.

Thus, said House Committee on Ways and Means chairman and Albay 2nd district Rep. Joey Salceda, who claimed that constitutional reform will have a “signaling effect”.

“Ngayon kasi pag tinignan mo stock market parang patay kasi nga yung mga shares pagmamay-ari lang ng mga pinoy pero pag sinabi mo yung mga shares don pwede nang bilhin ng foreigner biglang aakyat, makikita niyo kaagad yan,” Salceda said during a press briefing on Monday, Feb. 12.

(Now, when you look at the stock market, it seems dead because the shares are only owned by Filipinos, but when you say that the shares can be bought by foreigners, these will suddenly go up, you will see that right away.)

The economist-solon noted that aside from the immediate impact, an intermediate impact will also be observed thanks to the sudden influx of foreign investments.

Salceda expects the country’s Investment Promotion Agencies (IPA) and Board of Investments (BOI) to play a critical role in ultimately raising awareness on the advent of new investment opportunities once Charter change (Cha-cha) bears fruit.

The Bicolano also anticipates a broader variety of industries that will get investments after the supposed restrictions are finally removed.

“We’re too service-oriented as an economy, we need to diversify. We need to rebuild our basic sectors such as agriculture,” he said.

Currently, the business process outsourcing (BPO) is the leading industry in the country to obtain the most amount of foreign investments. Salceda said at least half of foreign investments in the country are only for BPOs.

Additionally, Salceda stressed that opening up land and resources to foreign direct investments can help alleviate the ever-growing prices of goods and services.

“By sheer force of clustering of the farms, then you can have economies of scale and therefore higher productivity and therefore lower prices because you get more for less,” he noted.

“Kaya mahal ang presyo ng pagkain kasi wala nang kapital yung farmer, hindi naman nabibigyan ng gobyerno,” he added.

(That's why food prices are high because farmers don’t have any capital, the government doesn't even provide for them.)