Economists and the Makati Business Club believe amending economic provisions of the 1987 Constitution may have minimal to zero impact on attracting foreign direct investments, or FDIs, to the Philippines.

“Amending a number of economic provisions of the Constitution will help. But there are a number of other issues affecting the attraction of FDIs,” Makati Business Club chairman Edgar Chua said in a text message to Daily Tribune.

Chua said the national government must instead help create a single body of processes and regulations for business registration and operations in local government units, or LGUs, in compliance with the already existing law, the Ease of Doing Business Act.

“The ease of doing business is not made easy because of the devolution of powers to the LGUs. They have many requirements and each city is an independent entity with their own regulations,” he said.

Chua said the multiple business requirements add a burden to investors as they entail “high, unnecessary fees and charges.”

Another major problem of foreign investors is the fickleness of policies in the country, Filomeno Sta. Ana III, coordinator of Action for Economic Reforms, said.

“Investors are hurt by the arbitrariness of rules or the general uncertainty created by policy shifts or policy contradictions. These are some of the issues that the administration must pay attention to, not Charter change,” he said.

“Our historical performance on respect for contracts is also not good. Look at all the international arbitration cases brought against the government,” Chua added.

On the other hand, Ramon Clarete, economics professor at the University of the Philippines-Diliman, said the proposal on constitutional change might strengthen the Philippines’ reputation of being “slow to decide on incentives unlike its neighbors.”