IMPORTANT VIEWS Former Supreme Court Senior Associate Justice Antonio Carpio (center), with economist Bernardo Villegas (left) and lawyer Rene Sarmiento, both members of the 1986 Constitutional Commission that drafted the 1987 Constitution, on Monday attend the Senate subcommittee hearing on the proposed amendments to the economic provisions of the Charter. —MARIANNE BERMUDEZ
Published February 13, 2024
Three members of the body that crafted the 1987 Constitution on Monday opposed the plan to amend the Charter, but foreign companies operating in the country—the expected beneficiaries of the proposal—supported government efforts to ease the restrictions on foreign ownership in economic sectors still protected by the Charter from non-Filipino investors.
These opposing views on Charter change (Cha-cha) were aired during the resumption of the hearings by the Senate subcommittee on constitutional amendments and revision of codes on Resolution of Both Houses (RBH) No. 6, which seeks to amend certain economic provisions of the Constitution.
Economist Bernardo Villegas, who headed the committee on national economy and patrimony of the 1986 Constitutional Commission, said this was not the opportune time as the government has to tackle two pressing economic conditions.
First, he said, President Marcos and his economic team should address the country’s “scandalous” poverty incidence of 21 percent, currently the worst in the Southeast Asian region.
Secondly, he added, the government needed to secure at least $15 billion in foreign direct investments annually until the end of the President’s term in 2028.
However, Villegas agreed that there was a need to modify the Charter to make the economy more attractive to foreign capital.
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SOURCE: www.inquirer.net
RELATED: Senators: PH is open for business, no need for Charter change
Published February 12, 2024
Senators on Monday, February 12 reiterated that the Philippines is already open for business without the need for any constitutional amendments.
Lawmakers at the Upper Chamber highlighted the significant strides that Congress has already made in recent years to liberalize the economy through legislation, among them is amendment to the Public Services Act or PSA, and other laws aimed at attracting foreign investments as they continue discussions on the Resolution of Both Houses No. 6, which seeks to amend the economic provisions in the 1987 Constitution.
Senators also cited the passage of the Foreign Investment Act and the Retail Trade Liberalization Act.
“The legislation aims to define and differentiate public utilities from public services while addressing the constitutional limitation on foreign equity,” Angara said in the case of the law amending the PSA.
The senator pointed out the amendments done to the 86-year old law has made sure that t60-40 foreign equity limitation applies to essential public utilities such as the distribution and transmission of electricity, petroleum and petroleum products, pipeline transmission systems, water pipelines distribution systems, waste water pipeline systems, seaports and public utility vehicles (PUVs).
These amendments, according to Angara, are vital to safeguarding our national interests and ensuring equitable access to essential services for all Filipinos.
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SOURCE: www.mb.com.ph
RELATED: Carpio hits ‘lack of understanding’ amid Cha-cha push to relax foreign ownership
Published February 13, 2024
Retired Supreme Court Senior Associate Justice Antonio Carpio on Monday said there seems to be a lack understanding among national leaders on the laws on foreign ownership in the Philippines amid the push to relax economic restrictions in the 1987 Constitution.
During the continuation of the Senate Subcommittee on Constitutional Amendments and Revision of Codes hearing on Resolution of Both Houses 6, Carpio noted that the Philippines has one of the most liberal foreign investment laws in the ASEAN and in Asia.
Even without amending the Charter, Carpio said the Philippines has passed several laws to open the economy to 100% foreign ownership, particularly the recently-amended Public Services Act, Retail Trade Liberalization Act.
“There appears to be a lack of understanding by our national leaders of the extent of foreign ownership under the law of businesses in our country,” Carpio told the subcommittee.
