Ex-Finance chief Teves urges senators to remove restrictions in 1987 Constitution

Former Finance secretary Margarito Teves on Dec. 25, 2019. Screenshot from PTV-4’s Sulong Pilipinas

Former Finance Secretary Margarito ”Gary” Teves expressed belief that removing restrictions in the 1987 Constitution would lift the Philippines from its present ”dismal position” as the region’s laggard when it comes to foreign direct investments (FDIs).

In a letter to the senators dated April 29, Teves said removing the restrictive provisions in the 1987 Constitution “will send a positive signal to investors and help improve the country’s investment climate to become more competitive in attracting foreign investments.”

“Amending the Constitution to show the Philippines’ commitment to investments can be done alongside enacting policies and reforms that aim to improve the rule of law, address corruption, and enhance the ease of doing business,” Teves said.

Teves also noted that removing the foreign-investment caps in the 1987 Constitution would prevent future judicial and regulatory challenges, hence reducing uncertainty among multinational companies interested to pour money here.

“Currently, the Amendments to the Public Service Act is facing two judicial challenges in the Supreme Court. There is a risk that the Supreme Court may declare that Congress has no power to define public utilities and render the reform unconstitutional,” Teves said.

Meanwhile, Teves also urged the Senate to lift the constitutional restrictions on land and natural resources, as well as mass media. The current Resolution of Both Houses No. 7 covers only advertising, education, and public utilities.

“Removing restrictions on land ownership will provide an opportunity to use idle lands either for agricultural purposes or for business ventures will enable small landowners to earn from their land while creating livelihood opportunities in many parts of the country resulting in more widespread and balanced development,” Teves said.

”This is particularly beneficial for idle lands in areas outside Metro Manila. These idle lands can be used for business or commercial purposes and help in regional growth,” he said.

The former Finance chief further pointed out that removing restrictions in natural resources would prevent the recently passed circular opening renewable energy from judicial challenges.

When it comes to mass media, Teves pointed out that while other ASEAN countries also restrict foreign investors, “these are not enshrined in their constitutions but are embodied in laws or administrative orders, making them more flexible and easier to change in the future.” — Anna Felicia Bajo/RSJ, GMA Integrated News

This article Ex-Finance chief Teves urges senators to remove restrictions in 1987 Constitution was originally published in GMA News Online.