Without the ulterior motive of the opportunists, amending the Constitution to allow flexibility in economic policies would be a logical move in a region of heightened competition.

Foreign trade groups and the key economic agency, the National Economic and Development Authority or NEDA, are all for the tweaking of the economic provisions consistent with the aim of President Ferdinand Marcos Jr. and his allies in Congress.

Before a public hearing at the House of Representatives, Socioeconomic Planning Secretary Arsenio Balisacan said ownership restrictions in the Basic Law were constraints on key sectors of the economy, thus holding back the country from developing.

Balisacan said the limiting provisions have resulted in missed opportunities and economic potential.

“Compared to our dynamic neighbors, historical data showed that the Philippines has obtained a smaller share of FDI inflows that could have generated more economic and social opportunities crucial for inclusive growth and development,” he said.

According to the Joint Foreign Chambers of Commerce in the Philippines, or JFC, relaxing the constitutional restrictions would facilitate a more significant inflow of foreign direct investments and buoy up the country’s position from being a laggard in Southeast Asia in terms of FDI.

“We recognize the government’s mandate to protect vital national interests by placing restrictions on FDI. In this respect, we note that most national economies use legislation or executive regulations to respond to such an important consideration,” the JFC said in a letter to Speaker Ferdinand Martin Romualdez.

Based on the proposed amendment, the phrase “unless otherwise provided by law” would be added to the limiting provisions, which JFC said would “adjust the regulatory environment for FDI to adapt to changes in technology, comply with requirements of international treaties, and take advantage of new opportunities to benefit in the global economy.”

The ASEAN Investment Report 2023 showed FDI flows in the region grew 5.5 percent in 2022 to a record $224 billion, or around 17 percent of global FDI. In contrast, the Philippine share of the growing foreign capital in the region was declining. It slid to $9.2 billion in 2022 from $12 billion in 2021.

The JFC, which includes the American, Australian-New Zealand, Canadian, European, Japanese and Korean chambers of commerce, and the Philippine Association of Multinational Companies Regional Headquarters, said the proposal to relax the restrictive provisions in the Constitution would be a welcome development. However, it isn’t likely to send a strong signal to foreign investors as the direct revision of the restrictive provisions.

Allowing foreign investment in public utilities, JFC indicated, could improve the quality and affordability of such services as energy and water distribution while also filling financing gaps in infrastructure.

President Ferdinand Marcos Jr. also expressed the need to revise the Constitution to enable the country to lift restrictions on critical sectors such as public utilities, education, mass media and advertising.

On education, the President stated that this step would grant Filipinos entry to worldwide knowledge, skills, and technology, encouraging innovation and positioning the Philippines as a competitive hub for exchanging knowledge in the region.

The elephant in the room, however, is the level of public confidence in those tasked with revising the Constitution because of the fear that once it is opened for revision under a constituent assembly, no one could stop the legislators from proposing an overhaul of the Charter.

Thus, The first task in the Charter change campaign would be confidence building, which members of Congress are not cut out to lead.

It boils down to President Marcos, who retains the highest public confidence among government officials, to lead the campaign instead of assigning the task to either head of the two legislature chambers.