Biz groups express support for Cha-cha as House panel starts hearing on constitutional amendments

Business and economic groups on Tuesday reiterated their support for Charter change, saying the Philippines will benefit if it opens up the economy to foreign investments.

At the start of the first House panel hearing on Charter change, Calixto Chikiamco, president of the Foundation for Economic Freedon (FEF), said amending the Constitution will not only be good for the economy, but it will also enhance national security.

He noted that some foreign companies have resorted to using dummy corporations just to be able to invest in the Philippines because of the economic restrictions in the Constitution.

The House committee on constitutional amendments convened on Tuesday to discuss House Resolution No. 1, authored by Speaker Sonny Belmonte.

House Resolution No. 1 seeks to amend the following articles of the 1987 Constitution: Article II or the declaration of state principles and policies, Article XII on national economy and patrimony, and Article XVI which contains sections on foreign ownership.

In his proposal, Belmonte inserted the phrase “unless otherwise provided by law” to certain portions of the Constitution to indicate that the current restrictions will remain in place until Congress acts to amend them.

Peter Wallace, governor of the Management Association of the Philippines, said the Philippines will become an attractive place for investment if it removes restrictions on foreign ownership of companies in certain sectors.

Sonny Africa of the think tank Ibon Foundation, however, said changing the Constitution is not necessary.

“The 1987 Constitution is pro-poor and pro-Filipino. What needs to be changed are globalization policies, not the Constitution,” he said.  — KBK, GMA News