MANILA, Philippines — More than half of Filipinos identified complex business regulations and restrictive foreign ownership rules as significant barriers to foreign investments in the Philippines, a survey suggested.
In March, the House of Representatives approved on third and final reading the proposed economic charter changer, which aims to lift restrictive provisions in public utilities, education, and advertising to attract more foreign investments.
A survey conducted by Pulse Asia from March 6 to 10, 2024 found that 56% of Filipinos cited complicated rules and regulations such as red tape and changes in government policies and regulations, while 55% identified restrictive rules on foreign ownership as the most significant factors that hinder foreign investment in the Philippines.
Nearly half or 46% saw corruption in the public sector as a major hurdle for foreign investment. It was followed by inadequate transportation infrastructure (40%) and high electricity costs (37%).
Inadequate telecommunication infrastructure (32%) and insufficient investor incentive (21%) were also seen as significant hurdles.
The Pulse Asia survey also revealed that 64% of Filipinos believe that removing restrictions on foreign investors will create more high quality jobs with high salaries and better benefits.
Fifty-five percent said that easing foreign investment regulations will lead to better services to stakeholders, while 55% said it will result in foreign capital dominating local investors and businesses.
Fifty-four percent, on the other hand, said that opening up the economy to foreign businesses will decrease the price of goods and services and 43% said it will put national security at risk.
A survey released by Pulse Asia last March 27 showed that 88% of Filipinos opposed moves to amend the 1987 Constitution.
The poll also found strong opposition to foreign ownership in the Philippines. For example, 86% disapproved of foreign individuals exploiting the country’s natural resources, and 81% opposed foreign ownership of residential and industrial lands.
Amending the Constitution to loosen restrictions on foreign investments could heighten the risk of environmental degradation and pose a greater threat to local communities, especially indigenous peoples, groups warned.
The Constitution limits the stake of foreign nationals and corporations in businesses at 40%.
President Ferdinand Marcos Jr., who has expressed his support for liberalizing the economic provisions of the 1987 Constitution, said he wants the charter change plebiscite to be held simultaneously with the midterm elections in 2025. — Gaea Katreena Cabico