Press Release
February 8, 2023

Robin Resolution Seeks Amendments to Constitution's Economic Provisions via Con-Ass

Sen. Robinhood "Robin" C. Padilla has taken the first major step towards amending the economic provisions of the 1987 Constitution so the economy can better respond to the needs of the times.

In Resolution of Both Houses No. 3, Padilla proposed the changes to the Charter via constituent assembly, with both Houses of Congress - the Senate and House of Representatives - voting separately.

"To accelerate economic growth, and fulfill its international commitment, the Philippines must amend its Constitution by removing these restrictive economic provisions to allow foreign businesses to directly invest in a more conducive landscape," he said.

Padilla chairs the Senate Committee on Constitutional Amendments and Revision of Codes.

He noted the Philippines, with its complicated investment regulations stemming from the Constitution's prohibitive economic provisions, is now lagging behind its neighbors in the Association of Southeast Asian Nations in terms of foreign direct investment registry "despite its offer of tax holidays, and other fiscal incentives."

Also, he said that while the Philippines ratified international trade and investment liberalization treaties to secure foreign investments and foster economic cooperation, the Constitution's current economic provisions "restrict certain activities of foreign investors on exploration, development and utilization of natural resources; ownership of private lands; grant of congressional franchises; ownership and operation of public utilities; ownership of educational institutions; and ownership and management of mass media and advertising."

"These economic provisions are perceived to be barriers to trade and investment responsible for the continuous decline of foreign direct investments, and placed the country as one of the most restrictive economies by international standards," he lamented.

Under the resolution, the Senate and the House of Representatives - by a vote of three-fourths of all members, with each House voting separately - will tackle amendments to:

* Sections 2, 3, 7, 10 and 11 of Article XII;
* Section 4(2) of Article XIV; and
* Section 11 (1) and (2) of Article XVI

The proposed amendments include:

* The State may undertake exploration, development and utilization of natural resources or may enter into coproduction, joint venture or production-sharing agreements with Filipino citizens, or corporations at least 60% of whose capital is owned by such citizens, unless provided by law;

* Private corporations may not hold alienable lands of the public domain except by lease for at most 25 years, renewable for not more than 25 years, and not to exceed 1000 hectares, unless otherwise provided by law;

* Congress may by law solely for the purpose of foreign direct investment allow aliens to acquire private lands not exceeding 1000 square meters in area; and foreign-owned corporations to acquire rural private lands not exceeding five hectares in area;

* Upon recommendation of the economic and planning agency, and when the national interest dictates, Congress shall reserve certain areas of investment to citizens of the Philippines or, unless otherwise provided by law, to corporations at least 60% of whose capital is owned by such citizens;

* Authorization for operating a public utility shall be granted only to Philippine citizens while the executive and managing officers must be Philippine citizens, unless otherwise provided by law;

* Educational institutions other than those established by religious groups and mission boards shall be owned solely by Philippine citizens while the control and administration of educational institutions shall be vested in Philippine citizens, unless otherwise provided by law;

* Ownership and management of mass media shall be limited to Philippine citizens and only Filipino citizens or corporations at least 70-percent owned by Filipinos shall be allowed to engage in the advertising industry, unless otherwise provided by law;

Political provisions, including the terms of elected officials, are not included in the resolution.

While a plebiscite will be held to ratify the resolution of both Houses of Congress, all existing provisions of the Constitution shall remain in effect until their enabling laws take effect.


Resolusyon ni Robin, Hangad Baguhin ang Economic Provisions ng Saligang Batas via Con-Ass

Ginawa ni Sen. Robinhood "Robin" C. Padilla ang unang hakbang para baguhin ang economic provisions ng Saligang Batas para matugunan nito ang mga pangangailangan ng kasalukuyang panahon.

Sa Resolution of Both Houses No. 3, iminungkahi ni Padilla na ipatupad ang mga pagbabagong ito sa pamamagitan ng constituent assembly, kung saan ang Senado at Kamara ay boboto nang hiwalay.

"To accelerate economic growth, and fulfill its international commitment, the Philippines must amend its Constitution by removing these restrictive economic provisions to allow foreign businesses to directly invest in a more conducive landscape," ani Padilla sa resolusyon. Si Padilla ang tagapangulo ng Senate Committee on Constitutional Amendments and Revision of Codes.

Ayon sa mambabatas, masyadong mahigpit ang mga probisyon ng Saligang Batas sa ekonomiya. Dahil dito, napag-iwanan na tayo ng ating mga karatig bansa sa Association of Southeast Asian Nations sa kabila ng mga insentibo tulad ng tax holidays.

Dagdag nito, bagama't may mga naratipika nang international trade and investment liberalization treaties ang Pilipinas, hindi pa rin makagalaw ang foreign investors dahil sa paghihigpit ng Saligang Batas sa pag-explore at pag-develop ng natural resources; pagmamay-ari ng pribadong lupa, public utilities at educational institutions ng mga dayuhan; at pagmamay-ari ng dayuhan ng mass media at advertising.

"These economic provisions are perceived to be barriers to trade and investment responsible for the continuous decline of foreign direct investments, and placed the country as one of the most restrictive economies by international standards," ayon sa mambabatas.

Sa ilalim ng resolusyon, tatalakayin ng Senado at Kamara - sa botong 3/4 kung saan hiwalay ang kanilang pagboto - ang mungkahing baguhin ang:

* Sections 2, 3, 7, 10 and 11 ng Article XII;
* Section 4(2) ng Article XIV; at
* Section 11 (1) at (2) ng Article XVI

Sa mga mungkahing pagbago:

* Maaaring magkaroon ng exploration, development at utilization of natural resources ang estado, o magkaroon ng co-production, joint venture o production-sharing agreements sa mga Pilipino o kumpanya na di bababa sa 60% na pagmamay-ari ng Pilipino, maliban kung may tinakdang batas;

* Hindi maaaring magmay-ari ng lupa ang pribadong kumpanya maliban sa pag-lease ng di hihigit ng 25 taon, maaaring i-renew ng di hihigit ng 25 taon, at hindi hihigit sa 1000 hectares, maliban kung may tinakdang batas;

* Maaaring payagan ng Kongreso na magmay-ari ang aliens ng lupa na di lalampas sa 1,000 square meters para lamang sa foreign direct investment, at pagmama-yari ng dayuhang kumpanya ng rural private lands na di lalampas sa 5 ektarya;

* Sa rekomendasyon ng economic and planning agency, at kung kakailanganin ng pambansang interes, maaaring payagan ng Kongreso ang ilang areas of investment sa Pilipino - o kung may tinakdang batas - sa kumpanyang hindi bababa na 60% pagmamay-ari ng Pilipino;

* Ang pag-operate ng public utility ay para lamang sa Pilipino habang Pilipino lamang ang maaaring maging executive at managing officers, maliban kung may tinakdang batas;

* Ang mga educational institutions ay sa pagmamay-ari lamang ng Pilipino habang Pilipino lamang ang maaaring mangasiwa ng nabanggit na institusyon maliban kung may tinakdang batas;

* Ang pagmamay-ari at pangangasiwa ng mass media ay limitado sa Pilipino habang ang kumpanyang di bababa sa 70% pagmamay-ari ng Pilipino ay papayagan sa advertising industry, maliban kung may tinakdang batas.

Hindi kasama sa resolusyon ang mga political provisions, kasama ang mga tungkol sa termino ng halal na opisyal.

Bagama't gaganapin ang plebisito para sa resolusyon, mananatili ang umiiral na probisyon ng Saligang Batas hangga't wala pang naipapasa na enabling laws para sa mga pagbabago sa probisyon.

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