House approves economic Cha-cha via voice vote

The House Committee of the Whole on Wednesday approved Resolutions of Both Houses No. 7 (RBH 7), which seeks to amend the 1987 Constitution by allowing increased foreign ownership of vital industries.

This developed after the House plenary, via a voice vote, carried the motion made by House Deputy Majority Leader Neptali "Boyet" Gonzales II of Mandaluyong City.

The Charter amendments under RBH 7 provide for the easing of the 40%-foreign ownership limit on education, public utilities, and advertising sectors by adding the phrase "unless provided for by law."

One of the lawmakers who voted no, Kabataan party-list lawmaker Raoul Manuel, asserted that foreign capital is not a magic wand that would cure the longstanding societal ill: unequal opportunities.

"The approval of economic Cha-cha is based on this belief, or dogma, that competition [from foreign companies] will improve our economy. This dogma rejects the fact that there is an uneven playing field worldwide and here in our country," Manuel said.

"The free market is not as free as we want it to be. The government should protect the disadvantaged, at hindi gastos lang ang nararapat na suporta sa small business, education, research at technological advancement," Manuel added

(The free market is not as free as we want it to be. The government should protect the disadvantaged. Spending isn't all the support that's needed for small business, education, research at technological advancement.)

However, for former finance secretary Margarito Teves and the Department of Foreign Affairs (DFA), the RBH 7 will pump in much-needed foreign capital to address low wages and increase the productivity of the country's labor force.

"Foreign equity limitations in the Constitution are binding constraints to investors. As of 2022, Vietnam, Malaysia, Indonesia, and Thailand have already surpassed us in terms of foreign direct investments," Teves said.

"The Philippines has to adjust its legal framework so it can be competitive in enticing foreign investors. What is important is who can best serve Filipinos, regardless of their nationality," Teves added.

Foreign Affairs Undersecretary Jesus Domingo, for his part, said the island city-state of Singapore also gradually opened its economy to foreign investments between 1965 and the 1990s.

The House approved RBH 7 after six days of marathon deliberations.

Here is a copy of RHB 7:

— VDV, GMA Integrated News