Wednesday, July 2, 2008 [ philstar.com ]
The German-Philippine Chamber of Commerce and Industry called on the government to remove restrictions on foreign ownership of lands in order to encourage more foreign investors.
Roland Odenthal, president of the German Chamber, said one of the main obstacles faced by foreign investors is the 60-40 rule.
As per the Constitution, foreigners are not allowed to own land in the country.
“It would be better if the grandfather rule can be removed,” Odenthal said.
Odenthal said they are currently encouraging more German firms to invest in the Philippines.
Earlier, European Chamber of Commerce in the Philippines (ECCP) executive vice president Henry Schumacher said the government must remove that provision in the Constitution.
“I don’t understand Filipinos can own land in Germany but we cannot do the same here,” Schumacher noted.
He said the chamber is pushing for reforms in the country. In spite of lobbying for changes, Schumacher reiterated his confidence on the government. “The macroeconomic fundamentals look good,” he noted.
The same sentiment was echoed by Norway Ambassador Stale Torstein Risa who said the country must change its Constitution and allow foreigners to own land.
“The 60-40 ownership rule is a hindrance to investments,” Risa said.
“If the Philippines would like to be competitive then you should allow foreign ownership. The Philippines will be a good solid business environment if the 60-40 rule is removed,” the Ambassador added.
Risa said this is the time for the Philippines to improve itself in order to attract the attention of foreign businessmen because fellow ASEAN countries are also aggressively seeking out foreign investments.
Vietnam has been very aggressive in its campaign to attract foreign investors.
“The Philippines is already a good place to invest but the eradication of the 60-40 rule will make it very very attractive and at par with other ASEAN member nations,” Risa explained.
Risa said investors would be more comfortable to put in money if they are the owners of the property.
He said investors, especially those that need to build expensive infrastructure must feel secure in their investments. For the ambassador, not owning the land is a major concern and may lead businessmen to be more cautious in infusing their money in the country.
Meanwhile, the Department of Trade and Industry (DTI) is urging lawmakers to fast track amendments in the Constitution that will help boost investment in the country.
Trade Secretary Peter B. Favila said they would like to see some amendments in the Constitution, specifically those pertaining to the rule on foreign ownership.
There have been moves to amend the Constitution in order to promote economic development but these have been met with strong opposition.
“We would like to see this happen,” Favila said.
Favila said there is more to gain by amending certain provisions in the Constitution rather than holding on to a law that repels the inflow of fresh investments.
However, Favila conceded that this may not happen in the near future because a number of people have signified their opposition to constitutional change.
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