Removing the restrictive economic provisions in the Constitution would help alleviate inflation and enhance real wages for Filipino workers, according to a former finance chief.

As concerns about workers' compensation and job availability top the list of priorities for Filipinos, former Finance Secretary Margarito B. Teves said that the time is ripe to eliminate the existing ownership constraints in the 1987 Constitution.

Teves said that such revisions would attract more foreign direct investments (FDI), leading to increased job creation and fostering business competition, ultimately boosting wages.

The former finance chief also argued that a greater number of businesses would not only drive down prices but also enhance the quality of goods and services available.

By facilitating the establishment of more enterprises, he said there would be a surge in job opportunities for Filipinos, creating a competitive environment for the recruitment of skilled Filipino workers.

Due to the current foreign restrictions in the Philippines, Teves noted that the Philippine foreign direct investment (FDI) inflows are trailing behind those of its ASEAN counterparts.

Between 2010 and 2022, FDI inflows totaled only $9 billion, a stark contrast to Indonesia's $22 billion, and Vietnam and Malaysia at $17 billion each.

“Except for those in the National Capital Region and nearby areas—which have almost 60 percent of economic activity—there are fewer opportunities for Filipinos to improve their lives,” Teves said. 

“Attracting more FDIs will help direct more capital, and thus more balanced growth in other regions,” he added.

The House of Representatives has recently approved Resolution of Both Houses No. 7, which seeks to revamp of the foreign equity restrictions pertaining to public utilities, education, and advertising, with inclusion of the phrase "unless otherwise provided by law."

Teves explained that with this amendment, the current foreign equity restrictions will remain in the Constitution, while also allowing Congress the flexibility to abolish these restrictions entirely through the enactment of legislation.

“We recommend the outright removal of the restrictive economic provisions in the Constitution, including those on mass media, land, and natural resources,” he said.

“Removing restrictions on land ownership will provide an opportunity to use idle lands for agricultural purposes and increase our supply of food and other agricultural products, which would help curb inflation,” he added. 

“In the case of mass media, other Asean countries also have economic restrictions in place,” the former official concluded.