Ex-CHED chair Licuanan opposes foreign ownership of educational institutions via Cha-cha

Former Commission on Higher Education (CHED) chairperson Patricia Licuanan on Tuesday expressed opposition to proposed amendments to the 1987 Constitution which relaxes restrictions on foreign ownership of higher education institutions (HEIs) in the Philippines.

"I do not favor amendments to restrictions on foreign ownership of educational institutions at any level," Licuanan said at the continuation of the Senate hearing on Resolution of Both Houses No. 6 (RBH 6) on Tuesday.

While foreigners holding equity stakes in Philippine schools is not a problem per se as this would give resources for education, Licuanan said, many HEIs are productively pursuing partnerships with foreign universities and CHED's internationalization policy already encourages and supports this.

"Such partnerships could and should be developed further without Charter change," Licuanan stressed.

The former CHED chief pointed out that the cases of Yale National University in Singapore and the foreign university branch campuses (FUBCs) in Malaysia have different circumstances.  

According to Licuanan, Singapore only tapped Yale to develop creativity, which is perceived as lacking in their developed educational system.

Singapore has provided funds in full while Yale has provided intellectual capital, but in the end, they decided to end it because it was "too expensive," Licuanan said.

While the FUBCs in Malaysia worked well because university admission is quite restrictive with only a limited number of universities, Licuanan said the situation in the Philippines is different.

"Foreign universities, while possibly attracted by our large young population, will soon discover after careful market studies that branch campuses in the Philippines will not be sustainable," Licuanan said.

Further, Licuanan noted that the Second Congressional Commission on Education (EDCOM II) has been recently convened and its view on foreign ownership of schools should be considered.

"So far, its over 300-page first year report spells out in no uncertain terms the dimensions of the crisis in Philippine education, but does not even hint at a need for change in the policy on ownership of schools to address these problems," the former CHED chairperson emphasized.

"The message to us from EDCOM II's year one report is: the education crisis is real, and it is serious. Let us not waste any time rearranging deck chairs on the Titanic!" she went on.

Licuanan also opposed changes in the charter's economic provisions in general, saying foreign direct investments are neither helped nor hindered by the Constitution.

"My humble opinion on Resolution No. 6 is no to amendments to economic provisions of the 1987 Constitution and No to foreign ownership of schools. In other words, no to Charter change. Let us stop this wasteful and divisive activity and focus on things that really matter before it is too late," she said.

'In the hands of Filipinos'

At the start of the hearing, Senator Sonny Angara, who leads the deliberations on RBH 6, clarified that proposed amendments to the Charter "would keep basic education in the hands of Filipinos."

"As late [former Commission on Human Rights Chairperson Chito Gascon]... says in the records, Filipino schools and Filipino-owned institutions play a very important part in the instilling of values and the molding of Filipino youth," Angara said.

"I think we want to maintain that societal or public goal, and we're looking at really, we're considering the possibility of amending the constitutional provision, which currently allows a 60-40 arrangement,” Angara added.

International standard

Meanwhile, EDCOM II executive director Karol Mark Yee said that amending the 1987 Constitution would promote internationalization in the Philippine education system.

Presenting a comparative study on foreign ownership policies of educational institutions in the Association of Southeast Asian Nations (ASEAN) region, Yee said that the Philippines has one of the strictest restrictions in both basic and higher education.

"Based on our research, within ASEAN, only the Philippines has foreign ownership, establishment, and enrollment restrictions stipulated in the Constitution, whereas other countries only indicate this via legislation," said Yee, a former executive director of CHED.

"Allowing foreign ownership is just the first step. Even in Singapore and Malaysia, they rolled out government incentives to encourage the establishment of international institutions," he added.

According to Yee, the internationalization of higher education and improving research productivity will be part of the EDCOM priorities under higher education for Year 2 and it will conduct its consultations this year on these two issues.

Fair warning

On the other hand, the Coordinating Council of Private Educational Associations of the Philippines (COCOPEA) chairperson Albert Delvo urged the lawmakers to proceed with caution on introducing amendments to the Constitution as this might have "long-standing complicated repercussions" and implications for generations to come.

However, Delvo said COCOPEA is willing to work constructively with the legislators regarding the matter.

"We are cautious because if we allow foreign citizens to control, own, and administer the institutions, that may be prejudicial to Filipino culture, values, moral, and spiritual matters. Baka (Maybe) they may be in danger," Delvo said.

According to Delvo, the current 60-40 percent restriction on foreign ownership of educational institutions has no complications at the moment.

"They seem to be content and happy with that. It serves the interest of the Filipinos. We are comfortable with that at the moment. We'll work with the legislature to level up the quality, at the same time, safeguard the interest of the nation," he said.

The Senate subcommittee on constitutional amendments and revision of codes' third hearing on RBH 6 focused on the limitations on foreign ownership of educational institutions.

The RBH 6 seeks to lift the 40% restriction on foreign ownership in advertising, education, and public utilities.

A counterpart bill was filed in the House of Representatives on Monday. — VDV, GMA Integrated News