The advertising industry has apparently gone global and thus, blurred the rules on foreign ownership.

This was the common observation among stakeholders as they try to find a common ground as to whether the Philippine advertising industry should be opened to foreign equity, Sen. Juan Edgardo "Sonny" Angara said.

“It seems that advertising is already global. The reality is that foreign talent is being hired by local agencies and local talent is also being hired by foreign agencies," Angara said as the Senate subcommittee on constitutional amendments, revision of codes continued its hearings on Resolution of Both Houses No. 6.

RBH No. 6 primarily seeks to open three economic provisions in the 1987 Constitution to foreign ownership, pertaining to public utilities, education and advertising.

Under the Constitution, foreign equity in advertising is limited to 30 percent.

"So, there is already a blur in foreign ownership,” Angara pointed out.

During the hearing, Rudolph Jularbal, legal counsel for the Kapisanan Ng Mga Broadkaster Ng Pilipinas (KBP) told the committee that Filipino talents are already working for foreign companies online and vice-versa.

"From what some of our resource persons said, you already have freelancers online so, in effect the regulations have been bypassed," Angara noted.

"The reality is that foreign talent is being hired by local advertising agencies, local talent is also being hired by foreign advertising agencies. So, in a way, the distinction between ownership has become non-important," he said.

At this point, Angara, who also chairs the Senate Committee on Finance, said he sees the necessity of ensuring that the government is benefitting and reaping profits or shares from advertising transactions.

Thus, national interest in the advertising industry, he said, should be protected at the legislative level.

"I think, that is important for the local ad agencies because if they have a foreign partner, they need to remit profits or shares, as pointed out by one advertising agency owner," he pointed out.
"Because when you open up sectors of your economy, one thing you have to do is to make sure that the business is good. Because if it's good, usually, they would re-invest," he explained.

Nevertheless, Angara said this particular economic provision "can be excluded or included."

"It depends really on our colleagues. But for me, what would be best is, you just leave it --- yung ‘unless otherwise provided by law’ you just put that phrase there so that the future generations won't have a hard time," he said.

"Because, for me the cross-border transactions, it’s already being done," he pointed out.