Finance Secretary Carlos Dominguez III (left) and Trade Secretary Ramon Lopez
MANILA – Finance Secretary Carlos Dominguez III and Trade Secretary Ramon Lopez are supporting initiatives in the Congress to further open up the economy, whether through Charter change (Cha-cha) or the enactment of laws.
During the meeting of the Commission on Constitutional Amendments of the House of Representatives Tuesday, Dominguez said the government should open up the economy to its widest extent, but with exemption to land ownership.
On the other hand, Lopez said eliminating barriers that limit foreign participation will unleash the high growth potential of the country by facilitating the entry of more investments that will modernize sectors, bring in technology, generate jobs, and improve the skills of local talents.
Both officials said liberalizing the economy can be done in many ways, aside from amending the Constitution.
“We must open our economy to its widest extent with the exemption of land. You can do it in several ways. I’m not qualified to advise Congress on political issues especially on the matter of Constitutional change. But if we must do what is necessary, we must do what’s necessary as soon as possible,” Dominguez said.
He said there are “low-hanging fruit legislations” that can further relax current restrictions, such as the Retail Trade Liberalization Act and the Public Service Acts, among others.
“With the idea that we have already of low-hanging fruit, let’s do that, but let us not stop at that,” he added.
This was also echoed by the trade chief.
“Those that we can already start doing… Obviously, that would be the priority. But nobody can stop Congress to start meaningful reforms through these efforts that you are doing. So we leave it to the wisdom of the Congress,” Lopez said.
He added that due to foreign ownership restrictions, the Philippines only attracts “one-half of the interested parties” looking into investment opportunities in the country.
Lopez said the Department of Trade and Industry (DTI) has 91 investment leads or foreign investors that seriously consider the Philippines for investments.
“It’s a matter of time, maybe one year before we see the realization of these investments. Other issues they have raised that really come into play are particularly restrictions to ownership,” he said.
Meanwhile, economist Bernardo Villegas expressed his support to amend economic provisions of the Constitution as this will allow the country to catch up with its neighbors.
Villegas said the international community was uninterested in the economic restrictions in the country when the 1987 Constitution was formed since the Philippines then was the “sick man of Asia”.
“(T)oday the Philippines is being singled out by independent think tanks as one of the promising and emerging markets not just in the Asia Pacific but in the world for the next 10 years,” he said. “They are very enthusiastic of the growth prospect… If we do not seize the opportunities (presented) by these outside think tanks, then we (will) once again be left behind by our neighbors like in the past.”
Villegas added only last year, Vietnam surpassed the Philippines in terms of gross domestic product per capita.
He attributed this development to the openness of Vietnam to foreign investors.
“We see the urgency of opening up the economy --in foreign investments in telecommunications, media, airports, education. These are the facilities that will enable the Philippines to catch up with their neighbors,” Villegas said. (PNA)
