MANILA, Philippines—The chief of the Department of Foreign Affairs backed amendments to the 1987 Constitution saying the country is constrained by limits on foreign ownership.
Foreign Affairs Secretary Albert Del Rosario noted the upbeat prospects of investments in the country under the Aquino administration but expressed the need to review existing economic restrictions.
In his speech during the inaugural conference of the Angara Center for Law and Economics Friday, Del Rosario said that the country has maintained an investment climate that is still restrictive by international standards.
“There may be a need to evaluate the existing statutory economic parameters as the Philippines further redefines its international economic policy,” he said.
President Aquino has expressed his opposition to amending the Constitution but has tasked his economic managers and legal team to study proposals to amend it.
Both Senate President Juan Ponce Enrile and House Speaker Feliciano Belmonte are pushing for Charter change to amend the economic provisions of the Constitution.
The Constitution limits foreign ownership of land, utilities, media and other services to 40 percent.
According to National Economic and Development Authority deputy director-general Emmanuel Esguerra, the President wants to decide on the basis of evidence whether to open the Constitution to any amendments.
“That will be the direction of our study: the evidence [and] the economic implications,” said Esguerra noting that the private sector will be consulted during the process of the study.
The President has given the economic and legal cluster two weeks to come up with their recommendations.
Meanwhile, Angara Centre executive director John Nye said that limits to ownership do not overly bother foreign investors citing in particular the case of Pakistan where foreigners are allowed 100 percent ownership.
“Pakistan’s economy has not benefited from that ruling,” Nye said.
Former Neda chief Felipe Medalla said, for his part, said that monopolies are the bigger issue, claiming some are actually owned by foreigners through dummies.