Aklan 2nd district Rep. Teodorico Haresco Jr.

The creation of at least 1.6 million jobs are at stake with the proposed economic-themed revisions to 1987 Constitution, House Committee on Appropriations Vice Chairman Aklan 2nd district Rep. Teodorico Haresco Jr. said.

“Removing economic restrictions to foreign investment in our Constitution is the lowest--hanging fruit especially for an emerging economy like ours,” Haresco said in a statement Wednesday, March 13.

He noted, however, that the Marcos administration continues to grapple with problems like unemployment.

Haresco cited the 2020 study of the UP Research and Extension Services Foundation-Regulatory Reform Support Program for National Development (UPPAF-RESPOND), which stated that opening up the economy to foreign investors by amending restrictive economic provisions in the Charter could generate 1.6 million jobs and could even double foreign direct investments (FDI) with about $16.2 billion (P777 billion) added investment to the current $9.2 billion recorded in 2022.

Data presented by Haresco also showed the Philippines lagging behind its Association of Southeast Asian Nations (ASEAN) neighbors, where it is the last in cumulative FDI inflows among the five biggest ASEAN economies - Indonesia, Malaysia, the Philippines, Singapore, and Thailand –from 2010 to 2020.

“We hold the highest foreign investment restrictions among the ASEAN-5 because of the limitations set in our Constitution and it’s also the reason why we cannot maximize foreign investments which could generate jobs and alleviate poverty,” the veteran solon said.

“The fruits of our economic and fiscal policies in the past decade are almost ripe. It’s high time we remove the barriers so not only a few benefit. Our country must work together with the global community so we can reap these bountiful harvest and have the Filipino people and their families benefit from our labor of love,” Haresco added.

Incidentally, the House of Representatives approved on second reading during plenary session Wednesday Resolution of Both Houses (RBH) No.7, which espoused this economic Charter change (Cha-cha).

READ THIS:

https://mb.com.ph/2024/3/13/right-on-schedule-house-o-ks-rbh-7-on-2nd-reading

Reports show that the top industries for foreign investments in ASEAN are: financial and insurance services (31.2 percent); manufacturing (23.7 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (15.1 percent); transportation and storage (10.3 percent); and real estate activities (5.0 percent).

In December 2023, data from the Philippine Statistics Authority (PSA) showed that the country’s labor market experienced its lowest unemployment rate recorded in nearly two decades with only 3.1 percent. By January 2024, it rose again to 4.5 percent.

PSA reports that the services sector led in terms of number of employed persons with a share of 58.2 percent, agriculture sector with 23.8 percent, and industry with 18 percent.