THE House of Representatives received bills and resolutions seeking to ease restrictions on foreign investment, including a proposal to increase the term foreigners can lease farmland.
Among the bills and resolutions filed at the House seeking various amendments to the 1987 Constitution was Joint House Resolution No. 4, introduced by Pampanga 3rd district Representative Aurelio D. Gonzales, Jr.
“We propose the qualified owning of land for foreigners to entice them to invest in our country and invite foreign direct investment. Additionally, this will ensure that our country produces enough food for our people,” Mr. Gonzales said at a committee hearing.
He said he proposes an amendment to allow the renewal of foreign leases of agricultural land for another 25 years.
“Foreign investors must be assured that our economic environment is conducive. That’s why we propose that we increase the renewal of the lease period of agricultural lands for another 25 years to ensure continued economic growth and development,” he said.
Asked to comment, American Chamber of Commerce of the Philippines, Inc. Senior Adviser John D. Forbes said that in general, the Constitutional restrictions on foreign investment are out of date.
“The restrictions were originally protectionist. But… the world has changed. A lot has changed since 1987. The restrictions, the way they are in the Constitution, are inflexible and difficult to change,” Mr. Forbes said.
He added: “The Philippines has tremendous investment potential. There are now more foreign investments coming into ASEAN than China… I don’t think one has to fear foreign investors if you can regulate foreign investors.”
Competition Commissioner Johannes R. Bernabe, also asked to comment, said: “Even as we generally support liberalization in so far as economic activity is concerned, because this fosters greater competition in the markets, regulation should also accompany such liberalization.”
John Paul P. Corpus, a supervising research specialist at the Philippine Institute for Development Studies, said he supports the power of Congress to “legislate exemptions” to foreign investor restrictions.
“We support the proposed amendments giving the Congress’s ability to legislate exemptions to foreign equity restrictions in order to attract greater foreign investments and improve competitiveness. (However)…there is a need to balance the pursuit of economic goals while protecting the national patrimony and the public interest,” Mr. Corpus said.
According to the United Nations Conference on Trade and Development’s (UNCTAD) 2019 World Investment Report on special economic zones, Foreign Direct Investment flows to the Philippines fell 25.75% to $6.46 billion in 2017. — Vince Angelo C. Ferreras
