Is the Philippine economy too strict?— Debunking the foreign direct investment myth

February 15, 2024

Charter change (Cha-Cha) proponents keep saying that the 1987 Constitution’s economic provisions are too strict on foreign direct investment (FDI) and that changing these is needed to spur investments, growth and development.

But is that really the case?

There are already numerous laws allowing 100% foreign ownership in most of the economy including manufacturing, trade, banking, telecommunications, most of transport and power, and even in mining and renewable energy sources.  The economy is now among the most open economies in the region.

Are these laws benefiting the Philippines and contributing to long-term economic development? More importantly, who actually benefits from the economy being opened up?