Gatchalian backs resolution to amend Constitution’s economic provisions

Senator Sherwin Gatchalian on Tuesday said he supported the proposed Senate resolution that seeks to amend the economic provisions in the 1987 Constitution.

“I have taken the position for the longest time to support discussions on amending certain provisions of the Constitution that would lead us to fully realize the economic potential of the country,” Gatchalian said in a statement.

The Senate leadership, led by Senate President Juan Miguel Zubiri, filed an unnumbered Resolution of Both Houses that seeks to amend the 1987 Constitution, particularly lifting restrictions on foreign ownership of businesses.

According to Gatchalian, he earlier filed Resolution of Both Houses No. 1 that sought to amend certain restrictive economic provisions.

“In certain industries, there are restrictions for foreign ownership. Currently, in the case of operation of public utilities, only up to 40% foreign ownership is allowed while for educational institutions, even partial foreign ownership is prohibited,” he said.

Gatchalian said there was also a need to amend such restrictions to sustain economic growth as they constrain foreign direct investments.

Further, he said that based on the 2020 OECD FDI Restrictive Index, the country was ranked as the third most restrictive of foreign direct investments among 84 member countries of the Organization for Economic Cooperation and Development.

“The innovations generated from competition and development of new linkages with regional and global chains will improve the diversity of the Philippines’ foreign trade portfolio and ultimately increase worker productivity and thus will not only attract foreign investments but also enable local forms to progress, invest and expand to help contribute to inclusive and sustainable development,” he said. — DVM, GMA Integrated News