The Department of Trade and Industry (DTI) is urging lawmakers to fasttrack amendments in the Constitution that will help boost investments in the country.
In an interview, Trade Secretary Peter B. Favila said they would like to see some amendments in the Constitution specifically those pertaining to the rule on foreign ownership.
According to the Constitution, foreigners cannot own 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. “We would like to see (amendment) this happen,” Favila said.
He added that some foreign investors are hesitant to enter the country because they cannot own the land.
Instead they opt to put their investments in other ASEAN member countries wherein they are able to secure their investment by owning the property.
Favila said there is more to gain by amending certain provision in the Constitution rather than holding on to a law that repels the inflow of fresh investments.
In spite of this, Favila conceded that this may not happen in the near future because a number of people have signified their opposition to constitutional change.
The same sentiment was echoed by Norway Ambassador Stale Torstein Risa who said the country must change its constitution and allow foreigners to own land.
“The 60-40 ownership rule is a hindrance to investments,” Risa said.
“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,” the Ambassador added.
Risa said this is the time for the Philippines to enhance its investment atmosphere 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 that investors would be more comfortable to put in their money if they are the owners of the property.