OUR 1987 Constitution has ensured that the Philippines has a solid framework for decision-making. This has meant that economic and social progress has been made without the uncertainties and instability that may transpire if there is no Constitution.
Nevertheless, there has been debate as to whether the Constitution should exist in its present form.
Article XII, dealing with National Economy and Patrimony has received expressions of concern. Some believe that this part of the Constitution may be construed as being somewhat defensive and regards ‘foreigners’ as a potential threat to national sovereignty.
Section 1 of Article XII sets out, with admirable clarity and conciseness, the objectives. It mentions, in part, the following:
‘The goals of the national economy are a more equitable distribution of opportunities, income and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.’
Section 11, however, is more restrictive. It says: ‘No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations under the laws of the Philippines at least 60 percent of whose capital is owned by such citizens…’
Until now.
Last week’s passage of Republic Act No 11659, signed by President Duterte, has made a substantial change to the 85-year-old Public Service Act (PSA).
The effect of this change is that telecommunications, airlines, shipping, railways, and toll roads allows full foreign ownership of companies operating in these sectors.
I believe that, as a result, we shall see a substantial increase in foreign direct investment in the Philippines. For many years, foreign investment has been lower than in other ASEAN nations and our growth has been correspondingly reduced.
Over the past two years, the stewardship of our economy has withstood the challenges posed by the pandemic.
Our future is promising. We are managing to keep foreign indebtedness under control, despite the pandemic.
We wish the incoming administration every success in preserving the strength of our economic fundamentals./PN
