Albay 1st District Rep. Edcel Lagman (Photo from House of Representatives FB page)
MANILA, Philippines — Albay 1st District Rep. Edcel Lagman believes foreign direct investments can enter the country without amending the 1987 Constitution, contrary to the belief of the House leadership.
In a statement on Wednesday, Lagman said that government officials should not risk the country’s patrimony just because of a perceived need to open the economy, especially when local and foreign think-tanks did not include such moves in their recommendations.
Lagman was referring to the Organization for Economic Cooperation and Development (OECD) recommendations issued as early as 2016, which called for the easing of foreign direct investment restrictions, harmonization of the incentive regime, and the enactment of a new Magna Carta for small and medium scale enterprises.
“We must not compromise or forfeit the Filipino’s patrimony by liberalizing the foreign equity and ownership of sensitive corporations and enterprises at the expense of Filipino controlling capital and management,” Lagman said.
“The [OECD] does not include the amendment of nationalistic constitutional provisions as an imperative inducement for the entry of foreign direct investments,” he noted.
The lawmaker, a lawyer by profession, said that OECD had listed the following major determinants to foreign investments:
- ease of doing business
- elimination or significant reduction of official corruption
- predictability of government policies
- adequate and enabling infrastructure
- faster and reliable internet speed
- cheaper cost of power
Talks of charter change have been floated anew after Speaker Ferdinand Martin Romualdez and Senior Deputy Speaker Aurelio Gonzales Jr. confirmed that the leadership intends to tackle proposals to open up the economy by early 2024.
Romualdez believes that amending the constitution would open up the economy.
Last February, he said that amending the Constitution — particularly provisions that block foreign economic investments and ownerships — would be the last piece of the puzzle for economic growth.
Gonzales meanwhile, filed Resolution of Both Houses (RBH) No. 1 last June 2022 seeking to convene the 19th Congress into a constituent assembly.
He said the House may file a new proposal or use his old suggestions.