Opening up PH economy 'good,' says BSP after approval of economic cha-cha

ABS-CBN News

Posted at Jun 08 2021 09:55 AM | Updated as of Jun 08 2021 10:32 AM

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MANILA - Opening up the country's economy to foreign investors is "by and large good," the Bangko Sentral ng Pilipinas said Tuesday on proposals to loosen restrictive economic provisions in the Constitution.

Lawmakers last week passed on final reading the Resolution of Both Houses No. 2 (RBH 2), which seeks to amend the regulation of limits to foreign investments in the country.

"Opening up the economy is by and large good for the Philippines. It’s not necessarily cha-cha but opening the economy," BSP Governor Benjamin Diokno told ANC's Headstart.

"But there are some measures right now pending in Congress. For example the Public Service Act will open up some of these things

Education and corporate ownership can be opened up more, said Diokno.

"We can open the educational system. I would like to see the day when American or UK universities can establish branches here so our countrymen don’t have to go abroad to get superior education," he said.

"Even media, I think we have to open media so we don’t have monopoly of news here."

When asked if the 60-40 share of ownership stated in the Constitution is a hindrance, Diokno said: "I think so because if you want to invest in a big way here you want control of public corporation, you don’t want to be in the minority."

House Speaker Lord Allan Velasco, who filed the resolution, said it aims to "purely help our country rise above this pandemic through liberalizing the restrictive economic provisions in the Constitution." 

Restrictive provisions prevents the Philippines from being "fully competitive" with its neighbors, according to Velasco.

"As global economies slowly bounce back from the COVID-19 pandemic, the Philippines must be ready to ride the wave or risk being left behind by its Asian neighbors," he said.