Sen Padilla Seeks to Liberalize Economic Provisions in Constitution

Senator Robinhood Padilla is seeking to allow Congress the power to create laws that will liberalize economic provisions of the 1987 Constitution which some economists and lawmakers note as “restrictive”

Sen Padilla had filed Resolution of Both Houses No. 3 which calls Congress to convene as a constituent assembly and propose amendments to the Constitution, specifically the economic provisions.

At present, the Constitution limits foreign investment in natural resources, private land, public utilities, educational institutions, advertising, and mass media.

“These economic provisions are perceived to be barriers to trade and investment responsible for the continuous decline of foreign direct investments, and placed the country as one of the most restrictive economies by international standards,” stated Sen Padilla in RBH No. 3

Sen Padilla is planning to insert the phrase  “unless otherwise provided by law” in the provisions. This new phrase would permit Congress to create laws that would change the restriction imposed by Constitution.

Sen Padilla is looking to provide leeway for the lawmakers to choose whether to lift the requirement that Filipinos retain a minimum of 60% of the ownership of certain areas of investment.

In his proposal, Sen Padilla wants Congress to permit foreigners to own 1,000 square meters and up to five hectares for foreign corporations, for the main purpose of foreign direct investment.

For Senator Padilla’s proposal to push through, it would need a three-fourths vote from the Senate and the House of Representatives, with each voting separately.

However, a few senators are already expressing their opposition to the proposal, with Senator Nancy Binay and Senator Grace Poe noting that Congress had already passed laws to open the economy to foreign investments.

Source: Philstar