Velasco bats for relaxed investment rules to attract more foreign capital

Speaker Lord Allan Velasco wants to ease Philippines' investment regulations in order to draw in more foreign direct capital, especially in agriculture and manufacturing sectors.

Speaking before leaders and members of the Joint Foreign Chambers of Commerce of the Philippines (JFC), and local business in a virtual conference last Thursday, Velasco also pointed out that more foreign investments in agriculture and manufacturing sectors could give more jobs for Filipinos.

“We sorely need investments in these sectors — massive and sufficient — to generate and sustain employment,” Velasco said.

According to Velasco, a boost in agriculture and manufacturing industries could be potential sources of employment for OFWs that the COVID-19 pandemic has rendered jobless and forced to return home due to uncertainties in host countries.

He also highlighted the "underperformance" of the country's agriculture sector.

“Unfortunately, one of the most crippling structural weaknesses in the Philippine economy is the underperformance of our agriculture and manufacturing sectors,” he said.

To lure more foreign investors, Velasco said the country would need to relax its business regulations to make them more friendly to foreign investments.

He particularly called for the enactment of investment-related legislative proposals, especially those espoused by the JFC and Philippine business groups.

These include amendments to the Public Service Act, the Retail Trade Act and the Foreign Investment Act, all of which have already been passed by the House of Representatives and transmitted to the Senate for its consideration.

Among the legislative measures commonly being pushed by Velasco and business groups are the proposed Rural and Fisheries Development Financing System Act that the House had already approved on third reading; the Coconut Trust Fund Bill; the proposed National Land Use Act; and the amendments to the Build-Operate-Transfer Law and the Contractor’s License Law.

Meanwhile, Velasco said he was open to amendments towards relaxing restrictive provisions of the Constitution on foreign capital. —LBG, GMA News