Robin Padilla wants to scrap 60-40 rule on foreign ownership of businesses

Senator Robin Padilla said he wanted to revise the Constitution to scrap the 60-40 rule on foreign ownership of businesses to accelerate job creation and competition among industries.

In a Monday interview, Padilla said the move would attract more foreign investments to support the country’s economic recovery.

“Para sa akin mas mabubuksan ang market. Isipin mo ilang trade agreement ang kasama ang Pilipinas? Halos lahat kasama tayo pero meron tayong restriction sa foreign investment. Di ba walang logic?” he said.

(For me the market will be more open. Think about it. How many trade agreements include the Philippines? But we have restrictions on foreign investment. There's no logic to it, right?)

“Dapat kung kasama tayo sa trade agreements, dapat bukas tayo sa foreign investors. Yan ang 1+1. Ang nangyari nasaan ang foreign investor, nagbukas nga tayo ng trade agreements pero wala tayong foreign investors? Yan ang sinasabi ko, hindi tumutugma,” he added.

(If we are involved in trade agreements, we have to be open to foreign investors. That's 1+1. Where are the foreign investors? We are open to trade agreements, but we don't have foreign investors? That’s what I’m saying, it does not match.)

Last March, former President Rodrigo Duterte signed a law amending the Public Service Act, thus allowing 100% foreign ownership of telecommunications, railways, and other public services.

The new law reclassifies telecommunications, railways, airlines, and logistical facilities as public services from their previous classification as public utilities.

Under the 1987 Constitution, foreigners may only own up to 40% of public utilities.

Padilla argued that lifting economic restrictions that limit foreign investment into the country would provide Filipinos more opportunities.

“Sa aking palagay binigyan natin ng chance ang local businessmen for almost 30 years. Siguro hindi na yan kulang, binigay na natin lahat sa kanila. Ngayon bigyan natin ng chance, di naman ibig sabihin isasara sa local, magkakaroon sila na magandang competition. Ang gusto natin dito magkaroon ng trabaho,” he stressed.

(I think we have given local businessmen a chance for almost 30 years. Maybe that’s enough, we've given them every opportunity. Now let us give [foreigners] a chance. It does not mean we are shutting local businesses out. They will have decent competition. What we want is to create jobs.)

As to whether foreign direct investments would overwhelm small local industries, the Senator reiterated that his proposal would help local companies.

“Katulad ng sinabi ko ang makikinabang diyan tayo. Hindi pwedeng sasabihin natin kukumpetensyahin sila. Hindi ko nakita yan sa pinagaralan kong bansa. Ine-example ko ang Vietnam, kasi yan galing sila sa laglag. Pero di naapektuhan local nila, lalo pang gumanda ang produktong local nila. Nasa atin yan eh,” he said.

(Like I said, we will benefit from this. We cannot say they will compete at a disadvantage. I didn't see that in the countries I have studied. I'm taking the example of Vietnam, which came from a slump. But their local industries were not affected, their local products even improved. It's up to us.)

Term extension

Meanwhile, Padilla pledged to prioritize economic reforms under his charter change proposal instead of extending the terms of national officials.

He clarified that without economic reforms in the Constitution no system or form of government would prosper.

“Ang term extension kasi nakaka-turn off yan. Pag yan ang pinagumpisahan ng Charter change, nakakawalang gana kasi ang dating ang gusto natin pahabain ang termino. Sa akin panghuli yan, kung yan pagusapan ngayon, wag na lang, parang ganoon,” Padilla said.

(Term extensions can can turn people off. If that’s what Charter change is about, people will lose the stomach for it. It will come across like we are extending our terms. That’s the last thing on my mind. If this is what we are talking about, let's not bother, something like that.)

“Kaya ako ang lagi ko sinasabi unahin natin pag-usapan natin economic reforms. Gusto natin magkaroon ng trabaho ang mga Pilipino. Ang OFW natin umuwi ng Pilpinas… Itong termino, political dynasty, hindi ito priority. Sa akin hindi kailangan. Ang kailangan natin trabaho,” he continued.

(That's why I always say, "Let's talk about economic reforms first." We want Filipinos to have jobs, our OFWs to come home to the Philippines… Terms, political dynasties, these are not a priority. To me it is not necessary. What we need are jobs.) — DVM, GMA News