About 1.5 million jobs will soon be opened for Filipinos following the easing of restrictions on foreign ownership in the renewable energy sector.

The hefty figures arose from the projection of Energy Undersecretary Sharon Garin during the third day of the Committee of the Whole hearing yesterday on Resolution of Both Houses 7, which seeks to relax economic restrictions on foreign ownership in public services, education, and the advertising industry which are said to be hampering the flow of foreign capital into the country.

According to Garin, the 357,459 individuals employed in the RE sector in 2022 would quadruple with government’s opening of the door to allowing 100 percent foreign capital in RE projects made possible through amending the Public Service Act or RA 11659.

The law now allows “full” foreign ownership of renewable energy, which was previously restricted only to 40 percent.

Development in the power sector

The DoE official cited the development in the power sector as they threw support in lifting economic restrictions in the 1987 Constitution, which was presumed to generate more jobs and income opportunities, leading to a substantial drop in the unemployment rate in the Philippines.

She estimated that the “direct and indirect job generation for 2023 new contracts based on potential capacity is at least 1.5 million positions.”

“Other than investments in the development of (RE), other components that will come in because of the trillions of investment from foreign investors is port development. We will need at least 10 new ports in order to cater to offshore wind projects,” Garin said.

After the DoE enable 100 percent foreign ownership in RE investments, the government, according to Garin, witnessed a surge in investment applications, including proposals for offshore wind and floating solar RE systems.

Foreign equity limitation

The 37-year-old Charter imposes a 60-40 foreign equity limitation on critical industries to safeguard the state from foreign encroachments.

However, proponents of Charter change posit that it is high time to relax its “restrictive” economic provisions to make the Philippines lucrative and no longer lag behind its neighbors.

Constitutional Reform and Rectification for Economic Competitiveness and Transformation Movement principal co-founder Orion Dumdum, a former overseas Filipino worker, echoed the same rhetoric, claiming lifting the economic provisions of the Constitution would be a crucial step to lure foreign investments in the country.

World’s third most restrictive economy

Citing the Organization for Economic Cooperation and Development, which ranks the Philippines as the third most restrictive economy in the world, Dumdum said the Philippines needs to open its economy to keep OFWs from flying abroad to scout better career opportunities.

“The effect of reducing foreign equity restrictions is the strongest, denoting its relatively greater importance as a statutory barrier for investors,” he quoted OECD.

He added, “Economic liberalization will mean more foreign investments, and OFWs will come home.”