Speaking during an interview at the third Spanish Products and Services Expo at the SM Megamall in Pasig City, Sagaz said the ban on land ownership and business control by foreigners are two provisions in the 1987 Constitution that drive away some investors.
Sagaz was also quick to point out that his view is "friendly" advice and that Spain is not meddling in affairs that are purely internal to the Philippines.
Charter change proponents have been pushing for the amendment of the provisions on barring land ownership and full business control by foreigners, claiming that the constitutional prohibitions are driving potential foreign investors away.
"Personally, I believe that the really important measure to attract foreign investments would be progressive flexibility on land ownership by foreigners," Sagaz said. "I’m convinced that, if foreigners can own land in the Philippines, it would be like a magnet and, very rapidly, it will fill the gap in investments in the Philippines and neighboring countries."
He added that opening land ownership to foreigners has proved successful in most European countries like Spain, which benefited from the foreign investments that poured into these countries as a result of such flexibility.
"It is a formula we have used in Europe and with very positive results," he said. "They have made us rich. I know it is a difficult and complex matter, but I hope that, in due time, steps are taken in this direction."
However, Sagaz also reiterated that he is not expressing any support for efforts to amend the Constitution because such efforts are an internal matter and Spain is not meddling in the affairs of the Philippine government.
"That is really an internal matter of the Philippines and what we have is only friendly advice," he said. "Now, the way you do it is really an internal matter of the Philippines which I do not want to answer."
He said "the decision in amending the Constitution belongs exclusively to the Filipinos."
"I’m speaking about purely economic results that will favor investments here," Sagaz said. "That is a fact that those countries that have been more flexibke in this particular respect have benefited from more money from foreign investors. I believe that you get more money from investors if foreigners could own land in the country."
Sagaz added that "investors are more attracted to a country where they can be the owners of their own business, obviously. If they decide later on to partner with Filipinos, it is their decision, but they need to have an alternative."
He added that Spain may diversify its investments overseas, especially in the Asian market, where Spanish capital is ready.
"The Philippines is a very attractive market for Spain," he added. "If the Spanish companies feel that the political situation and guarantee of investment and the possibility of making good business are given in the Philippines, I have no doubt that Spanish capital will come to the Philippines in greater proportion than in the past."