MANILA, Philippines - The Philippine government needs to amend investment-related laws and strengthen ties with the private sector as the Association of Southeast Asian Nations (ASEAN) gets closer to regional integration, said the Asian Institute of Management (AIM).
Speaking in a conference organized by the Center for Philippine Futuristics Studies and Management Inc., AIM professor Federico Macaraas said readiness for the ASEAN Economic Community (AEC) in 2015 can be attained through amendments to investment-related laws and the constitution.
“You need to amend laws for you to follow what you sign,†he said.
The AEC will transform the ASEAN into a region with free movement of goods, services, investment, skilled labor as well as freer flow of capital.
The Philippine Constitution, which sets a limit on foreign ownership on certain activities, is seen to prevent foreign firms from making investments in the country.
The Constitution limits foreign ownership to 40 percent in the following activities: development of natural resources, investment in areas determined to be of national interest, operation of public utility franchises, and educational institutions except those established by religious or mission groups.
Engagement in the advertising industry meanwhile, is limited to firms that are at least 70 percent Filipino-owned.
Investment areas open to Filipino citizens only are agricultural lands of public domain, ownership and management of mass media, as well as holding of executive and managing positions in the advertising industry.
Macaranas said that apart from amending certain laws, the government will also have to come up with new policies to make the country competitive in the regional integration.
“You must prepare various government agencies as well as other stakeholders in order to benefit,†he said.
Aside from having the necessary policies in place, he said, the government should educated the private sector on the effectos of the AEC.
“The private sector must understand to support and to be engaged meaningfully,†he said.
Companies, he added, should also adopt a global mind set in doing business.
The Center for Philippine Futuristics Studies and Management is a non-profit association which promotes future studies as a discipline, for application in economic planning.