Lawmakers agree to lift economic provisions that restrict FDI inflows

• Published date: 09 February 2023
• Publication title: Business Mirror

Lawmakers who are pushing for Constitutional amendments have reached a consensus to lift 'overly-protective economic provisions' that restrict the inflow of foreign capital, the leader of the House of Representatives said on Wednesday.

Speaker Ferdinand Martin G. Romualdez said congressional deliberations on the proposed Constitutional amendments are more focused now on the need to encourage investments that would further stimulate economic activities, create job opportunities, reduce poverty and lower prices of goods and services.

Meanwhile, Senator Robin C. Padilla on Wednesday took the first major step towards amending the economic provisions of the 1987 Constitution, saying it would help the economy better respond to the needs of the times.

Romualdez made a statement following the Constitution Day celebration in Malacañang, with President Ferdinand R. Marcos Jr. as guest of honor.

Romualdez, who is Philippine Constitution Association (Philconsa) president, said the House Committee on Constitutional Amendments is currently conducting public hearings and consultations on proposed changes in the 36-year-old Constitution.

He said aside from hearings in the House at the Batasan complex in Quezon City, the committee chaired by Cagayan de Oro City Rep. Rufus Rodriguez has scheduled public discussions and dialogues in other parts of Luzon, Visayas and Mindanao.

'The proponents of the lifting of the economic provisions in the Constitution agree on one thing, opening the economy wide for inflow of foreign capital is the key to address the aspirations and ideals of Filipinos in present times,' Romualdez said.

'That is why, when the President in his travels as the number one salesman of the country, we are often asked that after you have made so much progress and gains in opening up the Philippine economy, the last missing piece of the puzzle remains, how about your restrictive Constitution? That is why we in Congress are facing up to this question and to this issue that burns to our minds today and may actually open up the aspirations of the Filipino people for tomorrow,' he added.

He highlighted the need for foreign direct investments or FDIs by citing data and the experiences of other countries, culled from the reports of the Congressional Policy and Budget Research Department, which show how FDIs stimulate economic growth.

Based on UN data, he noted that FDIs account for the largest source of external financing in developing countries, greater than remittances...