The Foundation for Economic Freedom (FEF), a group of prominent economists and former government officials, has issued a statement supporting the amendments to the “restrictive” economic provisions of the 1987 Constitution.

The FEF said that the current constitutional provisions have hindered the country’s economic growth and development for decades, and that removing them would attract more foreign investments and create more opportunities for Filipinos.

The group cited the low foreign direct investment (FDI) inflows to the Philippines compared to its ASEAN neighbors, despite the enactment of liberalization laws in the previous administration. The FEF said that the Philippines is one of the last countries where restrictions on foreign ownership are embedded in the Constitution, and that this sends a negative signal to potential investors.

The FEF also pointed out that the constitutional restrictions limit the development of sectors where the Philippines has great potential, such as mass media and renewable energy. The group said that these restrictions create uncertainty and difficulty for policy makers to adapt to changing economic conditions.

The FEF proposed to fully liberalize and lift the following restrictions in the 1987 Constitution by allowing up to 100% foreign ownership for the following, unless otherwise provided by law:

• Exploration, development, and utilization of natural resources;
• Ownership of alienable lands of the public domain;
• Transfer or conveyance of private lands;
• Certain areas of investments;
• Operation and management of public utilities;
• Ownership of educational institutions; and
• Ownership of mass media and advertising.

The FEF said that these amendments would make the Philippines more competitive and attractive to foreign investors, and would also benefit the Filipino people by creating more jobs, improving public services, and enhancing the quality of education, culture, and information.

The FEF urged the Congress and the public to support the charter change initiative, which is currently being deliberated by the House of Representatives.