DILG backs call of business group to amend Constitution


The Department of the Interior and Local Government (DILG) has joined to the call of influential business groups for Congress to act swiftly for the  passage of pending economic bills, including economic constitutional reforms (Economic CORE) as the House of Representatives began plenary hearings on Resolution of Both Houses No. 2.

DILG Spokesperson and Undersecretary Jonathan E. Malaya said they have joined the call to the Senate and the House of Representatives of five respected business groups who collectively expressed their strong support for the initiatives of the Duterte administration to open the Philippine economy as a means for economic recovery and sustainability.

“The affirmation given by these business groups shows that government policies are on the right track and those business leaders are willing to work hand in hand with the administration for economic recovery and sustainability,” Malaya added.

The business groups are the Federation of Filipino Chinese Chambers of Commerce and Industry, Inc., the Foundation for Economic Freedom, Inc., the Management Association of the Philippines, the Subdivision and Housing Developers Association, Inc., and the UP School of Economics Alumni Association.

In a joint statement issued recently, the business groups called for the government to act with urgency in balancing public health with the deleterious effects of poverty and hunger on our countrymen and to maximize opportunities to attract foreign investments, create jobs, and build infrastructure for a strong digital economy.

“While we support the initiatives to liberalize the economy by amending the restrictive economic provisions of the 1987 Constitution, we are one with the position of the Department of Finance that our legislature act on something doable and immediately achievable,” the joint statement said.

“For the sake of our economy and the well-being of our people, we urge our government officials to act with the urgency that our situation demands, implement localized containment instead of community quarantines, and enact these crucial investment reforms,” reads the joint statement.

Malaya said that further delay in economic reform will result in lost opportunities and delay the country’s recovery from the pandemic and more hardships for our people. Aside from amending the Constitution, the economic bills sought to be passed are the amendments to the Public Service Act, Retail Trade Liberalization Act, and the Foreign Investments Act.

“We have thousands of returning OFWs (overseas Filipino workers) and LSIs (locally stranded individuals) who have decided and who are still contemplating to go back to their home provinces for good. Pushing for economic reforms will open up investments in the countryside and will provide them with employment opportunities including long-term economic growth in the regions,” Malaya said.

Citing a World Bank study, Malaya said the 1987 Constitution hinders foreign direct investments resulting in the Philippines having the lowest foreign direct investments (FDI) in the 10-member Association of Southeast Asian Nations (ASEAN).

“Our ending FDI as of 2018 is only 0.42, a figure which constitutes only 1.6 percent of our gross domestic product (GDP). This is way too low compared with the average 5.89-percent GDP in our neighboring countries,” Malaya cited.

The DILG Spokesperson said that by pushing for economic reforms, the Philippines will be able to open up more than 30 economic sectors which have been covered by the 60-40 (percent) FDI restrictions favoring Filipinos since the 1935 Constitution took effect. This will even open up 11 sectors that have been closed to foreign investors.


He said that a speedy passage of the economic provisions in Congress would send a signal to the international business community that the Philippines is now open for a globally competitive post-COVID economy.

The DILG, as chair of the Inter-Agency Task Force for Constitutional Reform and as the home of the Center for Local and Constitutional Reform, is a vocal and steadfast advocate of economic constitutional reform.

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