Foreign businessmen are supporting the Charter change (Cha-cha) but only with regards to amendments in the economic provisions.
The government should reconsider its position on banning foreigners from owning land in the country if they would like to encourage more investments, a Japanese businessman said.
“There should be room in some industries for foreign corporations to own land. It would be good for particular industries,” Toshifumi Inami, president of the Japanese Chamber of Commerce and Industry said.
Inami noted that there may be some industries, particularly those requiring heavy investments, that should be exempted from the country’s 60-40 rule. Under the constitution, foreigners are not allowed to own land in the country.
Meanwhile, European Chamber of Commerce in the Philippines (ECCP) executive vice president Henry Schumacher said the government must remove the foreign ownership restriction in the constitution because it is one of the reasons why investors are hesitant to enter the country.
“I don’t understand Filipinos can own land in Germany but we cannot do the same here,” Schumacher noted.
For its part, the German Philippine Chamber of Commerce and Industry likewise called on the government to remove restrictions on foreign ownership in order to encourage more foreign investors.
Roland Odenthal, president of the German Chamber, said one of the main obstacles of foreign investors is the 60-40 rule. “It would be better if the grandfather rule can be removed,” Odenthal said.
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 in a previous interview.
“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.
Risa said investors would be more comfortable to put in their money if they are the owners of the property.
Risa said investors, especially those that need to build expensive infrastructure must feel secure in their investments. He said not owning the land is a major concern and may lead businessmen to be more cautious in infusing their money in the country.