Thursday, June 8, 2023
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Opinion Columns About Town by Ernesto M. Hilario

Will foreign investors come?

Ernesto M. HilariobyErnesto M. Hilario
April 16, 2021, 12:05 am
in About Town by Ernesto M. Hilario
Reading Time: 4 mins read
A A
Share on FacebookShare on TwitterShare on Email

"Even the most well-meaning constitutional reforms and new laws would simply drive foreign investments elsewhere."

 

With the coronavirus pandemic resulting in the worst contraction of the Philippine economy since the Second World War—the gross domestic product or GDP falling by 9.5 percent last year—you would think that foreign investors would be filled with fear and loathing over the dire prospects of putting their money here at this time.

But if we're to believe the Bangko Sentral ng Pilipinas, all is not doom and gloom. It said that foreign direct investment net inflows actually grew by 41.5 percent to reach $961 million in January 2021 from $679 million in January 2020.

The increase in investment inflows during the month in the form of equity capital, reinvestment of earnings or long-term borrowings was supported mainly by the 116-percent expansion in nonresidents’ net investment in debt instruments to $535 million from $248 million in the same month last year.

“This development reflects the investors’ optimism at the start of the year due in turn to the gradual reopening of the economy under the ‘new normal’ condition, easing of lockdown measures, and positive news about the rollout of COVID-19 vaccines,” the central bank said.

But the preliminary figures on foreign investments for this year shouldn't be taken to mean that more would no doubt be coming for the rest of the year, or in the years ahead.

In fact, we are now seeing frenzied efforts by the national government to attract more foreign investments to accelerate economic recovery.

This week, Malacañang certified as urgent measures that allow full foreign ownership of public services and less restrictions on foreign investments. These are Senate Bill No 2094, which seeks to amend the Public Service Act; Senate Bill No 1156, which seeks to amend the Foreign Investments Act of 1991, and Senate Bill No 1840, which seeks to amend the Retail Trade Liberalization Act of 2000 by lowering the required paid-up capital for foreign retail enterprises

The House of Representatives passed in March 2020 its version of the amendment to the Public Service Act allowing 100 percent foreign ownership of public utilities.

The Senate version of the bill allows 100-percent foreign ownership of public services like telecommunications, power, and transportation by distinguishing between "public services" and "public utilities." The distinction is critical because the 1987 Constitution only requires 60 percent Filipino ownership of a firm if it operates a "public utility."

That's not all. Early this year, the House Committee on Constitutional Amendments opened deliberations on the Resolution of Both Houses Proposing Amendments to Certain Economic Provisions of the 1987 Constitution.

Among those invited to give their ideas on the issue were three professors emeritus from the University of the Philippines School of Economics (UPSE). Dr. Raul Fabella, Dr. Ernesto Pernia and Dr. Gerardo Sicat argued for changing the Constitution’s economic provisions given the need to speed up the recovery of the pandemic-hit economy.

Fabella, the only Filipino economist recognized as a National Scientist, said “the lifting of the constitutional limit on foreign ownership will make the Philippines more foreign investment-friendly.” The Yale University graduate said he favored the lifting of restrictions on the foreign ownership of land, asserting that land should be owned by whoever can make it more productive, regardless of citizenship.

For Pernia, a former director general of the National Economic and Development Authority, changing the economic provisions of the Charter is timely: "Although the economy has really been clobbered by the pandemic, the economy is recovering slowly––it is getting out of the hole little by little––and we need to accelerate that getting out of the hole.”

“We really need to push that, including allowing FDI (foreign direct investments) in the country, so this recovery will accelerate,” said Pernia who lamented that the Philippine economy has slowly been overtaken by other ASEAN economies.

Sicat, who founded the Philippine Institute for Development Studies (PIDS), explained that he considered the current economic provisions of the Constitution “the original sin” responsible for making it “really difficult for our country to progress in the attraction of foreign director investments.”

Sicat cited at least seven benefits of amending the economic provisions of the Constitution: (1) sustained and higher level of per capita GDP growth; (2) higher level of employment for Filipino workers; (3) improved overall level of productivity for the Filipino worker; (4) better nutrition of our workers' children and capability to support their schooling; (5) enhanced capacity of workers to finance family housing and other needs; (6) improved capacity for the state, through an upgrade of its finances, to undertake programs to ameliorate the conditions of those in poverty; and (7) a rising standard of living for all Filipinos.

Constitutional amendments alone, however, cannot be expected to bring foreign investors in droves to the country. This should be complemented by other measures that would convince them to put up stakes here for the long-term. These would include curbing corruption, red tape and regulatory capture; addressing inadequate infrastructure; bringing down high power costs; and maintaining law and order, among others. Otherwise, even the most well-meaning constitutional reforms and new laws would simply drive foreign investments elsewhere.

 

ernhil@yahoo.com

Tags: Ernesto HilarioForeign investorsGDPgross domestic productPhilippine economy
ADVERTISEMENT
Ernesto M. Hilario

Ernesto M. Hilario

Related Posts

Caught in the crossfire

byErnesto M. Hilario
May 31, 2023, 12:05 am
0
8
Denying Villafuerte justice

"The story of a brilliant and successful lady executive caught in the crossfire of a family feud is definitely worth...

Read more

The Malampaya deal

byErnesto M. Hilario
May 26, 2023, 12:15 am
0
8
Denying Villafuerte justice

"The truth is that Malampaya had been successfully operated by an all-Filipino team of experts for at least two decades...

Read more

Are Filipinos satisfied with our democracy?

byErnesto M. Hilario
May 24, 2023, 12:05 am
0
8
Denying Villafuerte justice

Corruption has become systemic and institutionalized, with both elective and appointed officials helping themselves to the public till and getting...

Read more

All is not quiet in the Diliman Republic

byErnesto M. Hilario
May 19, 2023, 12:15 am
0
8
Denying Villafuerte justice

"Today, the MDG-UP said, there are clear indicators of the emergence of an all-powerful BOR" Last month, a group calling...

Read more

Reclamation: More harm than good?

byErnesto M. Hilario
May 17, 2023, 12:05 am
0
8
Denying Villafuerte justice

What they are urging the government to do now is to review all proposed and ongoing projects to determine whether...

Read more

Stronger PH-US partnership

byErnesto M. Hilario
May 12, 2023, 12:05 am
0
8
Denying Villafuerte justice

The convergence of common interests and shared experiences now compel (the Philippines and the United States) to become even closer...

Read more

Print Edition

View More

Recent Posts

  • Development, not just welfare
  • Speaking ex-cathedra
  • Networking has expanded beyond traditional face-to-face interactions
  • Cop, accomplice get two life terms for kidnap-slay
  • Comelec cannot reset deadline for SOCE filing—SC
  • DFA hails PH inclusion in Canada’s visa-free policy
  • Makati City allots P26.4m for Blu Card incentives
  • BARMM eyes bigger funding for LGUs

Advertisement

Latest News

DFA hails PH inclusion in Canada’s visa-free policy

byRey E. Requejo
June 7, 2023, 11:35 pm
0
8
Southwoods nails Seniors’ Fil golf crown

DEPARTMENT of Foreign Affairs (DFA) Secretary Enrique Manalo said Wednesday that the inclusion of the Philippines in Canada’s Electronic Travel...

Read more

Makati City allots P26.4m for Blu Card incentives

byJoel E. Zurbano
June 7, 2023, 11:30 pm
0
8
Makati shuts 2 more restobars

THE Makati City government on Wednesday announced the release of P36.4 million in cash incentives to 21,245 Blu Card holders....

Read more

BARMM eyes bigger funding for LGUs

byNash B. Maulana
June 7, 2023, 11:25 pm
0
8
Southwoods nails Seniors’ Fil golf crown

THE Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) will augment the revenue resource-based operational capability of municipal local government units...

Read more

Food poisoning downs 40 people in Taguig City

byJoel E. Zurbano
June 7, 2023, 11:20 pm
0
8
Taguig launches inoculation for city’s OFWs

THE Taguig City government is investigating the source of contamination that resulted in the food poisoning of at least 40...

Read more

BOC seizes kush worthP2.4m in Port of Clark

byVito Barcelo
June 7, 2023, 11:15 pm
0
8
Southwoods nails Seniors’ Fil golf crown

THE Bureau of Customs (BOC) has intercepted more than 1.5 grams of kush worth P2.4 million in a shipment declared as “denim...

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Technology
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • MS ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Gallery
    • Photos
    • Videos
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Pets
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App