In photo standing from left to right: Elisha Sanchez, PCCI Policy Officer; Ferdinand A. Ferrer, PCCI Vice President for Industry Affairs; Dr. Alberto P. Fenix, Jr., PCCI Honorary President & Advisor; Engr. Enunina V. Mangio, PCCI Vice President for Regional Affairs; Atty. Anthony Bengzon, PCCI Co-Chair for Legislation; Hon Rufus B. Rodriguez, Chairperson, House Committee on Constitutional Amendments; George T. Barcelon, PCCI President; Atty. Benedicta Du-Baladad, PCCI Director for Legislation and Taxation; Ruben J. Pascual, PCCI Secretary-General; Calixto V. Chikiamco, PCCI Co-Chair for Legislation; Mr. Bernardo Benedicto III, PCCI Assistant Treasurer; and Rhuby Conel, PCCI Assistant Secretary General.

 

The Philippines could attract more and better investments and create good quality jobs for its people if its investment environment is more open to foreign direct investments (FDIs).  Congressman Rufus Rodriguez, Chair of the House Committee on Constitutional Amendment stressed as he presented to PCCI measures approved by the House of Representative to hold a Constitutional Convention (ConCon) before the end of the year.  The ConCon will study, approve and present to the people through a plebiscite, proposals to amend the 1987 Philippine Constitution.  Congressman Rodriguez stressed that the amendments will focus solely on the restrictive economic provisions of the Constitution.

 

RBH 2 and 4: Lifting of foreign equity restrictions

 

Resolutions of Both Houses (RBH) 2 and 4, which are pending before the Constitutional Amendment Committee, seek to allow 100% foreign equity in certain sectors of the economy by inserting the phrase “unless otherwise provided by law” in sections of the Constitution that pertain to: (1) the exploration, development, and utilization of natural resources; ownership of lands of the public domain; (2) the transfer of lands to individuals or corporations; (3) operation of enterprises reserved to Filipino citizens; (4) ownership of franchise, certificate, or authorization for the operation of a public utility; (5) ownership of educational institutions; and, (6) ownership of mass media.

 

Congressman Rodriguez explained that current constitutional limitations contravene the objectives of the amendments to the Retail Trade Liberalization Act, amendments to the Foreign Investment Act and Public Service Act.  Unless the Constitution is amended to lift the foreign equity restriction in the sectors covered by these measures, the constitutionality of these measures stand on shaky grounds.

 

“We should consider that the Constitution is the fundamental law of the land and all laws must conform to it and not the other way around.  Meaning, not unless and until the constitutional restrictions are removed, the apprehensions and hesitancy on the part of the investors will consequently remain,” Cong. Rodriguez emphasized citing the petition for certiorari a consumer group filed with the Supreme Court questioning the constitutionality of the PSA Amendment.

 

“Current trends show that our country continues to lag behind our ASEAN neighbors in terms of attracting FDIs.  Data from UNCTAD and ASEAN show that the Philippines is behind the curve. Achieving competitiveness requires the infusion of capital and technology, something that can be accelerated by removing regulatory and constitutional restrictions and improving the climate for doing business,” PCCI President George Barcelon said as he expressed the chamber’s support to the measures.

 

A computation presented by Cong. Joey Salceda at the 18th Congress showed the following average annual incremental benefits between 2021 to 2031: 1.86% in GDP, 6.49% in annual capital formation, P330.45 Bn net increase in FDI inflow and 660,897 jobs p/a.

 

RBH 6 and HR 7352: Calling for a Constitutional Convention

 

To start the amendment process, the House of Representatives has approved Resolution of Both Houses (RBH) 6 calling for a Constitutional Convention.  Simultaneously, House Bill 7352 specifying the conduct and the appropriation of funds for the holding of the Constitutional Convention was approved.  Under HB 7352, the election of ConCon delegates will be on the last Monday of October 2023 (30 October 2023) simultaneous with the Barangay and Sangguniang Kabataan elections.

 

The cost for the exercise is estimated at P11.2 Bn covering the election of delegates, convention operations and plebiscite expense.

 

Cong. Rodriguez explained that the House is considering a hybrid ConCon as suggested by former Supreme Court Chief Justice Reynato Puno.  At the public hearing called by the Committee last February, former CJ Reynato Puno said, “The best way to amend or revise the Constitution is thru a Constitutional Convention… a hybrid Constitutional Convention in the sense that membership be independent and will come from a combination of elected and appointed delegates… Congress should have the power to determine composition of ConCon and not leave the same to the sole power of the Executive Department.”  He further said, “… looking into the cost of conducting this exercise should be considered as investments to secure our future.”

 

The briefing-dialogue is part of the Legislative Talks series organized by the PCCI’s Legislation Committee under Atty. Benedicta Du-Baladad as Director and Mr. Calixto Chikiamco and Atty. Anthony Bengzon.  The next forum will take up the proposed Amendments to the Comprehensive Agriculture Reform Program in partnership with the Committee on Agriculture.  Inquiries and comments may be submitted to advocacy@philippinechamber.com. --- Rhuby Conel, Elisha Sanchez