Envoy urges RP to allow foreign ownership of land

In order for the Philippines to attract more investments, the country must amend its Constitution and allow foreigners to own land, a foreign ambassador said.

“The 60-40 ownership rule is a hindrance to investments,” Ambassador Stale Torstein Risa of Norway said in an interview.

According to the Philippine Constitution, foreigners cannot own a land. They must have a local counterpart who will own 60 percent of the property.

There have been moves to amend the Constitution in order to promote economic development but these have been met with strong opposition.

“If the Philippines would like to be competitive then you should allow foreign ownership. The Philippines will be a good solid business environment if the 60-40 rule is removed,” Risa said.

Risa said this is the time for the Philippines to improve itself in order to attract the attention of foreign businessmen because fellow ASEAN countries are also aggressively seeking out foreign investments.

Vietnam has been very aggressive in its campaign to attract foreign investors.

“The Philippines is already a good place to invest but the eradication of the 60-40 rule will make it very very attractive and at par with other ASEAN member nations,” Risa explained.

Risa said investors would be more comfortable to put in money if they are the owners of the property.

He said investors, especially those that need to build expensive infrastructure must feel secure in their investments. “Not owning the land is a major concern and may lead businessmen to be more cautious in infusing their money in the country,” Risa said.

For example, he said Norway-based communications, IT and media company Telenor is seriously considering putting up a telecommunications company in the country to rival communications giant Globe Telecom and Smart Communications Inc.

However, there is still a need for Telenor to look for a local counterpart in order to invest their sizeable capital into the country.

“The investors are seriously looking at the Philippines and that there is a renewed interest to invest but the 60-40 rule is a problem and a hindrance to investments,” Risa said.

Aside from the problem of ownership, he said investors are upbeat because of the social economic policies being implemented by the current administration.

“The government is doing a lot of good things to improve the country but more work has to be done,” Risa noted.