EX-FINANCE CHIEF TEVES FAVORS 100% FOREIGN OWNERSHIP OF FIRMS FOR HIGHER WAGES TO FILIPINOS

By Junex Doronio

MANILA — Taking note that the Philippines is the only country in the Southeast Asian region where restrictions on foreign ownership are embodied in the Constitution, former Finance Secretary Margarito ”Gary” Teves on Tuesday (06 Feb 2024) said he favors 100% foreign ownership of companies that will provide higher paying jobs for Filipinos.

The former finance chief noted that the Philippines lags behind other countries in Southeast Asia in terms of foreign investments and development.

“We need to have a legal framework and market conditions that match our competitors. Increasing foreign investment in the currently restricted areas will generate higher quality, higher paying jobs whose incomes provide greater opportunity for more inclusive growth and development for our people and the country,” Teves said in a statement.

Lawmakers from both the Senate and House of Representatives have been pushing for economic reforms but clashed on the issue of charter change (Cha-Cha) via the People’s Initiative (PI).

“We believe that the removal of these restrictive economic provisions would send a clear and compelling message to foreign investors, signaling a warm welcome to their investments and business operations in the Philippines,” Teves further said.

He also expressed support for making amendments to the 1987 Constitution.

Teves pointed out that the liberalization laws that allow more foreign ownership such as amendments to the Public Service Act, the Foreign Investment Act, and the Retail Trade Liberalization Act are not enough for the country to catch up to the economic development of fellow ASEAN members.

“The Philippines still lags behind its ASEAN peers in foreign direct investments. Data as of 2022, indicate that Indonesia, Vietnam, Malaysia, and Thailand have surpassed the Philippines in attracting foreign investments,” Teves said.

Finance Secretary Ralph Recto also supported initiatives to amend economic provisions in the 1987 Constitution in a bid to open up the economy to foreign investors.

(el Amigo/MNM)