PRESIDENT Duterte and his Partido Demokratikong Pilipino (PDP)-Laban party-mates, who are set to take control of the Senate and the House leadership, are backing moves to relax constitutional restrictions on foreign ownership of business enterprises to attract more investors here—but not real properties.
Incoming Senate President Aquilino Pimentel III disclosed on Monday that Mr. Duterte is expected to endorse for consideration by members of a proposed Constitutional convention (Con-con) the adoption of remedial measures that will boost the new administration’s reform agenda for the next six years.
Pimentel confirmed the Duterte administration would also ask Concon delegates to pass amendments on existing rules covering foreign investors doing business here, but quickly clarified this should not include land ownership.
“OK, let me be clear about the foreign ownership,” Pimentel told reporters in an ambush interview, “It’s the relaxation of the nationalization requirement in certain business [es].”
He said Congress is likely to favor a consensus that foreign investors looking to put up businesses here should not be restricted.
“If we can, let’s not tie that to the Constitution anymore. Let’s pass that to the legislature so that there is flexibility,” Pimentel said, pointing out that “the legislators can adjust the percentage of national interest in the different industries and business.”
But Pimentel made it clear that the PDP-Laban position is that relaxation of rules covering foreign investors should not include allowing land ownership.
“We will not agree to foreign ownership of land,” PImentel said. “So, that is in the rules now, and the position of the PDP-Laban and President Duterte [is that] even if we amend the Constitution, we want the rule to remain.”
The 1987 Constitution limits foreign ownership in certain industries to 40 percent. Experts said this effectively discouraged the entry of more foreign investments into the Philippines.