BSP supportive of removing 'restrictive provisions' in 1987 Constitution

The Bangko Sentral ng Pilipinas (BSP) on Monday expressed its support to removing “restrictive” economic provisions in the 1987 Constitution, following the filing of a resolution of both chambers of Congress seeking to make such amendments.

In a position paper, the central bank reiterated its support to easing the equity restrictions on foreign participation in the economy, as it stated in previous papers in November 2019, December 2016, and September 2014.

“Based on BSP’s responsibility and objectives, BSP supports efforts that will promote inclusive economic growth of the country including, among others, easing restrictive economic provisions in the 1987 Constitution,” the paper read.

“BSP believes that reducing, if not removing, restrictive provisions will facilitate increase in foreign capital investment and hasten the growth of the economy, which, in turn, can expedite the ability of the nation to realize inclusive economic growth,” it added.

Under the 1987 Constitution, foreign ownership on certain sectors is limited to a maximum of 40%, and totally prohibited in other sectors.

The BSP’s position paper was released in response to the filing of Resolution of Both Houses No. 7 (RBH 7), which seeks to amend provisions on public services, education, and the advertising industry by adding the phrase “unless otherwise provided by law.”

“These proposed amendments to the economic provisions of the Philippine Constitution are in line with the government’s efforts and measures to address major challenges in attracting foreign investments that, in turn, help achieve growth and financial resilience,” the BSP said.

“To fully realize the economic benefits of such amendments, it would be instructive to advance policies that would enable domestic industries to develop and enhance their productivity,” it added.

Marcos last December said studies on amending the Charter should focus on attracting more investors into the country.

During his state visit in Japan last February, Marcos said amending the 1987 Constitution is not a priority of his administration, noting that goals can be achieved under the present Constitution. —KBK, GMA Integrated News