Binoe wants to scrap 60-40 rule on businesses foreign ownership
By Nidz Godino
"For me market will be more open… think about it…how many trade agreements include Philippines…but we have restrictions on foreign investment…there's no logic to it, right?" Senator Robinhood Padilla wanted to revise the Constitution to scrap 60-40 rule on foreign ownership of businesses to accelerate job creation and competition among industries.
Padilla said move would attract more foreign investments to support country's economic recovery.
"If we are involved in trade agreements, we have to be open to foreign investors…that's 1+1…where are the foreign investors…we are open to trade agreements, but we don't have foreign investors…that's what I'm saying, it does not match," he stressed.
Last March, former President Rodrigo Duterte signed a law amending Public Service Act, thus allowing 100% foreign ownership of telecommunications, railways, and other public services.
The new law reclassifies telecommunications, railways, airlines, and logistical facilities as public services from their previous classification as public utilities.
Under the 1987 Constitution, foreigners may only own up to 40% of public utilities.
Padilla argued that lifting economic restrictions that limit foreign investment into the country would provide Filipinos more opportunities.
"I think we have given local businessmen chance for almost 30 years…maybe that's enough, we've given them every opportunity…now let us give foreigners chance... does not mean we are shutting local businesses out...they will have decent competition...what we want is to create jobs," he stressed.
As to whether foreign direct investments would overwhelm small local industries, the Senator reiterated that his proposal would help local companies.
"Like I said, we will benefit from this…we cannot say they will compete at disadvantage… I didn't see that in the countries I have studied… I'm taking the example of Vietnam, which came from a slump…but their local industries were not affected, their local products even improved…it's up to us," he said.
Meanwhile, Padilla pledged to prioritize economic reforms under his charter change proposal instead of extending terms of national officials.
He clarified that without economic reforms in the Constitution no system or form of government would prosper.
"Term extensions can turn people off…if that's what Charter change is about, people will lose the stomach for it… will come across like we are extending our terms…the last thing on my mind…if this is what we are talking about, let's not bother, something like that," Padilla said.
"That's why I always say, "Let's talk about economic reforms first…we want Filipinos to have jobs, our OFWs to come home to the Philippines… terms, political dynasties, these are not a priority…to me it is not necessary…what we need are jobs," Padilla concluded.
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