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)

By Junex Doronio

MANILA — Seeing a lot of undeveloped lands outside Metro Manila and other major cities, former Finance Secretary Gary Teves on Friday said lawmakers should seriously consider allowing foreigners to own land in the Philippines as among the amendments to the economic provisions of the Constitution.

Teves made the statement on the heels of the renewed push for Charter change (Cha-Cha) via the People’s Initiative (PI).

“I feel strongly about it because having seen several areas in the Philippines outside of the major ones like Metro Manila, there are quite several undeveloped land,” he noted.

Teves was appointed as Department of Finance (DOF) Secretary in July 2005 by then President Gloria Macapagal Arroyo, following a mass resignation of her economic team.

The former finance chief reasoned out that allowing foreigners to own in the Philippines might create more jobs for Filipinos.

“If a foreign investor will put up a house, then there will be employment because he needs plumbers and he needs carpenters. If he needs it to put up a factory, then there will be jobs that will be created,” Teves said.

However, he admitted that deciding which parcels of land can be sold to foreigners must be data-driven.

“For example, we need to get that Land Use Bill approved, and then this bill will then indicate to us, the policymakers, which areas can be purchased by the foreign investors,” Teves further said.

He said Metro Manila and other cities that are congested and have high prices of land should be exempted if foreigners are allowed to own land in the country.

(el Amigo/MNM)