Jump to content

Big business groups want economic Cha-cha


Recommended Posts

rainymike

A push for constitutional change. Good for the country in my opinion. Not sure what the long term impact will be on us retired expats.

 

http://www.philstar.com/headlines/2015/12/07/1529973/big-business-groups-want-economic-cha-cha

 

 

MANILA, Philippines - The business community has united to rally behind proposals to change economic provisions of the Constitution.

 

Philippine business groups and foreign chambers of commerce called on Congress over the weekend to urgently pass the proposed amendments to the economic provisions of the Constitution.

 

They said it is high time for the country to do so as it makes its bid to secure more ambitious bilateral and regional trade agreements.

 

“We reiterate our call for the early approval of Resolution of Both Houses No. 1 (RBH 1). We also respectfully urge our congressmen and senators to make history and swiftly pass this reform measure that will aid in our joint effort to improve the country’s investment climate, create more and better jobs for Filipinos, reduce poverty, and achieve inclusive growth,” the local and foreign business groups in a statement.

 

RBH 1, principally authored by Speaker Feliciano Belmonte Jr., seeks to include the phrase “unless otherwise provided by law” in some sections of Articles XII (national economy and patrimony), XIV (education, science and technology, arts, culture and sports) and XVI (general provisions).

 

The resolution has been approved on second reading in the plenary with the third reading vote requiring approval of three-fourths of the members of the House of Representatives.

 

Headlines ( Article MRec ), pagematch: 1, sectionmatch: 1

 

The business community said RBH 1 is the first serious effort to undertake the often recommended reform to replace the constitutional restrictions on foreign equity with specific laws.

 

“The constitutions of almost all countries in the world do not contain restrictions on foreign investment. Most countries who do impose some restrictions on foreign investment do so through legislation or administrative orders that can be changed to suit shifting national priorities,” the business groups said.

 

The groups stressed that much has changed in Asia since the restrictions were placed in the 1987 Constitution and the Philippines in particular has joined the World Trade Organization, agreed to open trade and investment within ASEAN and with ASEAN Plus partners.

 

Despite the development, however, the groups said high poverty levels and underemployment continue to hound the Philippine economy.

 

“The Philippine government should maximize the amount of foreign investment generated as a means to drive down unemployment and underemployment levels. We believe that achieving our goal of sustainable and inclusive growth requires the generation of a significant number of jobs.

 

Attracting massive amounts of foreign investments, meanwhile, is among the best means by which to create these employment opportunities,” the business community said.

 

The business groups said easing the country’s foreign investment restrictions also plays a critical role in the country’s aspiration to join the Trans-Pacific Partnership (TPP) and forge an advanced free trade agreement with the European Union.

 

With the TPP providing for minimum barriers to cross-border investment flows among members, the Philippines is unlikely to join the 12-member group unless some restrictions would be reduced.

 

“The Philippines has enjoyed enhanced economic prospects and is on the radar screen of the international investment community – and these will be further improved by higher foreign investments.

 

It will be unfortunate if the Philippines fails to take advantage of this golden opportunity and realize the potentials that a liberalized trade and investment regime will bring,” the business groups said.

 

The local and foreign business groups that manifested support for RBH 1 are the Federation of Filipino-Chinese Chambers of Commerce and Industry, Financial Executives Institute of the Philippines, IT and Business Process Association of the Philippines, Makati Business Club, Management Association of the Philippines, Semiconductor and Electronics Industries in the Philippines Inc., American Chamber of Commerce of the Philippines, Australian-New Zealand Chamber of Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, Korean Chamber of Commerce and Industry of the Philippines, and the Philippine Association of Multinational Companies Regional Headquarters Inc.

 

  • Like 1
Link to post
Share on other sites
contraman

Not being a lawyer, I am failing to see that this is nothing but window dressing.

No where does in say specific things like the amount a foreign company can own etc :idontknow:

  • Like 1
Link to post
Share on other sites
Headshot

Not being a lawyer, I am failing to see that this is nothing but window dressing.

No where does in say specific things like the amount a foreign company can own etc :idontknow:

 

Agreed. Unless they get rid of the 60/40 rule and make it possible for foreigners to own LAND, then this changes NOTHING. If they change those two clauses, then this will be a game changer. Investment money will pour into the Philippines. There will be a strong upward trend on land value at that point because foreigners will be able to invest without the huge amount of risk they incur now.

  • Like 1
Link to post
Share on other sites
rainymike

Not being a lawyer, I am failing to see that this is nothing but window dressing.

No where does in say specific things like the amount a foreign company can own etc :idontknow:

 

Few countries are capable of handling sweeping constitutional changes overnight. This is a small, but strategic step that would give Congress flexibility in loosening up existing restrictions in priority areas. Thus the phrase "unless otherwise provided by law" would give Congress the power to modify foreign ownership limitations in certain areas of the economy. It's essentially an end run - so instead of saying foreign ownership limits is now increased to 80%, it simply gives Congress wiggle room to modify such limits in specific economic areas as circumstances/priorities warrant.

 

I think with ASEAN on the horizon, the pressure for flexibility is there. But there are strong forces opposed to the change, so only time will tell if this will ever be passed into law.

 

All the Philippines has to do is take a look at countries like communist Vietnam with an anti-individual ownership philosophy. Over the years, Vietnam has taken a lot of small steps in creating more flexibility to the point that foreigners can now actually own land (approved this year).

 

Although the Philippine economy looks good on paper with high levels of growth and foreign investment, when compared to neighboring countries, the country is far behind the pack. Modern business interests seem to be in favor of reform. Geographic regions like the Visayas are in favor of reform. Resistance seems to come from the political left that seems to prescribe to old communist theories that Russia, China, Vietnam, etc. have long abandoned.

Link to post
Share on other sites

Unfortunately the ruling class here don't want change, they have interests in many businesses in their respective provinces, why would they want competition when in the longer term all it will do is increase costs for them and maybe allow the peasants to get a foothold on the ladder to a better livelihood, education and a more inclusive system, they're quite happy with things the way they are.........

Link to post
Share on other sites

Agreed. Unless they get rid of the 60/40 rule and make it possible for foreigners to own LAND, then this changes NOTHING. If they change those two clauses, then this will be a game changer. Investment money will pour into the Philippines. There will be a strong upward trend on land value at that point because foreigners will be able to invest without the huge amount of risk they incur now.

And then what? All companies become owned by foreigners? The 60/40 is only for domestic, non-export-only companies. It's too dangerous to open up domestic market when they have literally no competitive business of their own.

 

In Philippines nobody is interested in making anything at all and that's probably the biggest problem - all money flow into real estate and trading, and everything of quality still have to be imported. Foreign investment isn't going to fix that.

Link to post
Share on other sites

@ rainymike,

 

Do you have a link to RBH1? I've googled and results were only comments about the proposal.

 

I think it would be a good idea to change the laws and regulations concerning businesses but would like to see this law first.

Link to post
Share on other sites
rainymike

@ rainymike,

 

Do you have a link to RBH1? I've googled and results were only comments about the proposal.

 

I think it would be a good idea to change the laws and regulations concerning businesses but would like to see this law first.

 

Since it's still a proposal, the language is probably still being tinkered with. But here's a link to the House site with a list of proposed constitutional amendments.

 

Look at number 12 (Committee Report) on the list. I think the original proposal is shown in the committee report.

 

http://www.congress.gov.ph/committees/search.php?id=0507&pg=bills#

Link to post
Share on other sites
contraman

 

 

Unless they get rid of the 60/40 rule

There is the cruncher and they don't appear to be wanting to change that :idontknow:

Link to post
Share on other sites

There is the cruncher and they don't appear to be wanting to change that :idontknow:

"unless otherwise provided by law" is the phrase they want to insert. If it is inserted then a law could be passed to change those numbers.

I think it is a smart way to change the constitution so as not to ruffle too many feathers in doing so. Then they may or may not pass a law changing those percentages. Only time will tell.

Link to post
Share on other sites
contraman

"unless otherwise provided by law" is the phrase they want to insert. If it is inserted then a law could be passed to change those numbers.

I think it is a smart way to change the constitution so as not to ruffle too many feathers in doing so. Then they may or may not pass a law changing those percentages. Only time will tell.

May, could, would, should it all means nothing.

Inserting the words "unless otherwise provided by law"  Just means that the politicians are guaranteeing their backhanders :idontknow:

Link to post
Share on other sites
Headshot

There is the cruncher and they don't appear to be wanting to change that :idontknow:

 

Exactly. As far as I can see, this is all just words, so they can act like they are doing something to promote foreign investment...while not actually doing anything.

 

And then what? All companies become owned by foreigners? The 60/40 is only for domestic, non-export-only companies. It's too dangerous to open up domestic market when they have literally no competitive business of their own.

 

In Philippines nobody is interested in making anything at all and that's probably the biggest problem - all money flow into real estate and trading, and everything of quality still have to be imported. Foreign investment isn't going to fix that.

 

I seriously doubt that you will find these rules about business and land ownership in any prosperous country in the world. These laws are meant to protect the Filipino elite from foreign competition, and the result is BAD for most Filipinos. The results are poor service, poor quality, low wages and poor attitudes by businesses. One of the worst outcomes of the present situation is that Filipinos must go overseas to make a decent living...simply because a few families can dictate low wages and poor working conditions in the Philippines. Bring in foreign competition, and all of that goes away. If Filipino businesses have to compete for customers and employees, then the customers and employees will win. It is the Filipino elite who want all Filipinos to believe that foreigner ownership is a bad thing, but there is absolutely no evidence of that. Getting the masses to believe fairy tales is simply one way that the elite control the masses. Protectionism only protects the elite.

Edited by Headshot
Link to post
Share on other sites

I like this country I don't want to see big international companies having away to come in and destroy it like they are doing to the USA and many banana republics, African nations. Etc.

 

Pump and dump is what they do. Soros and palls come in get their stages in government to run up huge debts and then sell of all property mining etc rights forever.

  • Like 1
Link to post
Share on other sites

I seriously doubt that you will find these rules about business and land ownership in any prosperous country in the world. These laws are meant to protect the Filipino elite from foreign competition, and the result is BAD for most Filipinos. The results are poor service, poor quality, low wages and poor attitudes by businesses. One of the worst outcomes of the present situation is that Filipinos must go overseas to make a decent living...simply because a few families can dictate low wages and poor working conditions in the Philippines. Bring in foreign competition, and all of that goes away. If Filipino businesses have to compete for customers and employees, then the customers and employees will win. It is the Filipino elite who want all Filipinos to believe that foreigner ownership is a bad thing, but there is absolutely no evidence of that. Getting the masses to believe fairy tales is simply one way that the elite control the masses. Protectionism only protects the elite.

 

Those laws are in Taiwan, and in China as well. We're actually more restricted than Philippines in this regard.

 

We didn't need foreign competition on local market to get prosperous, neither did South Korea, or Japan. Most customers are NOT blind or deaf or have problem thinking, and that's why you don't need competition from big giant multinational corporations to improve local business. In the case of Philippines, their problem is much bigger than lack of competition. Given their current situation, instead of improving they'd probably just die.

 

They can't even make fresh milk into market.

Link to post
Share on other sites
Guest
This topic is now closed to further replies.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and Guidelines. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..

Capture.JPG

I Understand...