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SPEAKER VELASCO SAYS

Opening Philippine economy to foreign capital vital for recovery


Opening up the economy to foreign investors is crucial in helping the Philippine economy recover from the impact of the COVID-19 pandemic, Speaker Lord Allan Velasco said Sunday as he pushed to amend the "restrictive" economic provisions in the 1987 Constitution.

In a statement, Velasco confirmed that he has instructed the House Committee on Constitutional Amendments to open Charter change (Cha-cha) deliberations on amending the "restrictive" economic provisions in the Constitution as stated in Resolution of Both Houses (RBH) No. 2 which he filed back in July 2019.

He said that at the time of his filing of the measure, the Philippines was on its way to become one of the fastest growing economies in Asia. No one, however, was able to predict the onset of the COVID-19 pandemic and its impact on economies around the world.

"As global economies slowly start to reopen, we cannot allow the Philippines to lag behind in terms of investments and opportunities. We need to seize the momentum if we are to fully recover from the economic devastation of COVID-19," Velasco pointed out.

"RBH 2 seeks to liberalize the restrictive economic provisions in the Constitution that prevent us from becoming fully competitive with our Asian neighbors," he added.

Under the said measure, the phrase "unless otherwise provided by law" will be included in the provision that reserves certain areas of investments to citizens of the Philippines or to corporations at least 60% of whose capital are owned by Filipinos.

Also, the same phrase is added in the provisions that limit ownership of educational institutions and mass media to Filipinos.

Moreover, the measure introduces the same phrase to the provision allowing the State to undertake exploration, development, and utilization activities on the country's natural resources.

According to Velasco, the addition of this phrase would allow Congress to enact laws to free up the economy to foreign investors, or maintain the status quo.

"Foreign investment plays a crucial role in the Philippine economy by supporting domestic jobs and the creation of physical and knowledge capital across a range of industries," he said.

"The need to attract foreign capital is critical to support our economy’s recovery from COVID-19," he added.

He said they are aiming to finish the Cha-cha deliberations before the end of 2021 and present it to the public for ratification during the 2022 national elections.

"Until then, we assure the public that the debates on RBH 2 will be transparent and fair," he said.

Opposition lawmakers from the Makabayan Bloc have expressed concern that the Cha-cha deliberations would pave the way for the amendment of political provisions in the Constitution, allowing the term extension and the lifting of term limits for some elected officials.

House Committee on Constitutional Amendments chair Alfredo Garbin Jr., nevertheless, assured the public the deliberations will focus only on the restrictive economic provisions.

The House panel deliberations are set to begin on Wednesday. —LBG, GMA News

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