Binay sees need to liberalize economic restrictions of Constitution

MANILA, Philippines - Vice President Jejomar Binay said the government needs to review and liberalize the Constitution’s economic restrictions to sustain the country’s strong growth and make it more competitive.

During the recent joint meeting of the Makati Business Club, Employers Confederation of the Philippines and Management Association of the Philippines, Binay said the review of the 1987 Constitution’s economic restrictions needs to be pursued to continue to achieve economic growth and become more competitive.

“I fully agree that there must be a review of economic provisions,” Binay added.

The Constitution sets a 40 percent limit on foreign ownership in certain industries, a restriction which has been seen as a hindrance to the entry of foreign investments to the country.

Binay said “there are still other laws that should be revisited, not only the 60-40 restriction in the Constitution.”

“But as we revisit, we must always bear in mind that these will make the Philippines very competitive in the global market,” he added.

Should the government decide to amend the Constitution, he said the review should be limited to economic provisions.

Business groups are pushing for the amendment of the economic restrictions to encourage more foreign investments in the country.

Speaker Feliciano Belmonte, Jr. has filed a resolution which seeks to convene the Senate and the House as a constituent assembly to propose an amendment to relax the foreign ownership restrictions in the Constitution.

President Aquino though does not support moves to amend the Constitution.

Apart from a review of the Constitution’s economic provisions, Binay said the government also has to pursue other measures to enhance and strengthen the economic gains the country has achieved.

“We must continue to expand our tax base, not by higher taxes but by improving compliance and collection,” he noted.

He also said the private sector could play a part in making sure that the country’s gains would be sustained by paying correct taxes, since the government cannot implement projects without revenues.

Binay also noted the government needs to continue to raise infrastructure spending, which is currently at two percent of gross domestic product, to five percent of GDP.

He also said that Filipino consumers should be provided with affordable products and that the peace and order situation needs to be improved.