00:00 From news and views, issues and opportunities, we'll have in-depth conversations with decision-makers
00:06 to find out what they know and what they think.
00:10 I'm Rico Gizon inviting you to join the exchange because your business is our business.
00:19 One step forward, two steps back.
00:23 Talks on charter change are front and center yet again, and the proposed amendments focus
00:28 on economic provisions, including opening up land ownership to foreigners.
00:33 What are the stakes and how urgent is it to introduce changes?
00:39 While loss of east, foreign ownership in some sectors, what more needs to be done?
00:44 And should the economic provisions be changed?
00:47 What happens next?
00:48 The push for economic charter change is not new, but will it finally see the light of
01:04 day as the Marcos administration wants to further open up the country to more foreign
01:08 investors?
01:09 Let's now have an exchange with business and commercial law professor Antonio Ligon.
01:14 Sir, thank you so much for joining us.
01:16 So is there a need for an economic cha-cha?
01:19 Well, as we have discussed the last time, I don't see any change in the constitution
01:26 right now.
01:27 In fact, there are so many provisions in the constitution like the dynasty provision, which
01:31 has not been acted upon for so long.
01:35 And now you're going into this economic provision, and as I've said, and as the studies show
01:41 also, these investors are not requiring the change in the constitution.
01:47 They're more for ease of doing business, transparency, and of course, good governance.
01:54 And the economic provision entails land ownership, 100% foreign owned, but we have already made
02:05 some amendments with regard to the Foreign Investment Act.
02:09 And this does not change the constitution.
02:13 So you're saying then that this economic cha-cha, if it does materialize, will not really benefit
02:22 the ordinary Filipino people and be a threat to Filipino businesses?
02:26 I don't see any threat to the businesses.
02:29 I don't see any also drastic improvement on the lives of the Filipino people.
02:36 What we have to improve is of course our way of governance.
02:43 And as a practicing lawyer, we can see that even domestic businessmen or local businessmen,
02:51 they have a hard time opening up a business because there's so many red tape.
02:57 And of course, when President Marcos talked about potentially economic provisions in charter
03:04 change, he established boundaries on which sectors should not be opened up to foreign
03:08 investors like land.
03:10 So does this allay fears of those against economic cha-cha?
03:15 That is a good and a positive statement when you say you will not touch the ownership of
03:21 lands because studies show that there is no direct correlation between 100% land ownership
03:28 and investor coming in.
03:31 And you know what, Mr. Digon, this change in the Constitution has been talked about
03:40 administration after administration to regulate economic sectors that can be opened up to
03:46 foreign investors.
03:48 But why hasn't it really succeeded?
03:50 Well, because of the process.
03:52 You know, there is a three-way procedure to amend the Constitution.
03:59 Now what they're doing right now is through people's initiative.
04:04 But the question is, is that the real people's initiative?
04:08 That the people are clamoring for these changes?
04:11 What is happening is the people are being used, the numbers are being used to say that,
04:16 "Hey, we want this change in the Constitution."
04:20 And as we said, the first question there is, do the people really understand what is to
04:25 be changed?
04:26 But do really people understand, do our Kababayans really understand what economic provisions
04:31 are?
04:32 Or as simple as, do they really understand what's inside the Constitution?
04:36 I told you, those in college will answer no to that, because you really have to discuss
04:43 it well.
04:44 And when you go down to the people, you have to discuss this provision in the vernacular
04:49 and you have to explain it to them before they can make an intelligent decision on the
04:55 matter.
04:56 I mean, the Public Service Act, which is basically what is being held in by senators
05:03 if they indeed will study the economic provisions, has already been amended by the previous administration.
05:10 So what is there still to change?
05:13 And not only that, in the manufacturing sector, you are allowed 100% foreign ownership.
05:19 Now I don't know if that economic provision will also include the ownership in schools.
05:25 No.
05:26 Because there are some schools of thought that they would say 100% ownership in running
05:32 the educational institution.
05:35 Of course, even students would say no, because otherwise you will really change the parameters
05:40 of our educational system.
05:42 But if you were part of this charter change group, and economic provisions is just what
05:52 will be focused on, what would you change?
05:56 Well, I would change the, we will implement the improvement or the ease of doing business.
06:05 And of course, instead of having the different structure or unit of government to have their
06:10 own requirements, let's have one stop shop, one requirement for all.
06:15 And that will include already what is the suggestion of the barangay, the municipality,
06:21 the cities, the provinces, and the like.
06:24 So you don't have this procedure wherein you go to the barangay for the clearance, you
06:28 go to the municipality, and then of course the national government's requirement.
06:33 Now they will say there is this one stop shop and the anti-red tape.
06:37 Then we have to streamline and we have to really see that in action.
06:40 But that has always been a discussion for many decades, anti-red tape, ease of doing
06:46 business.
06:47 Yes.
06:48 Why are we not succeeding?
06:49 It's more of the political will also.
06:55 And while it's just like those invitations to investors, when you go and showcase the
07:06 Philippines, many will pledge.
07:08 But once they experience, let's say, because when they pledge, it's not necessarily mean
07:13 that they will invest in the Philippines.
07:15 It's just a pledge.
07:16 But let's say when they engage local lawyers or accountants to do these things, they will
07:26 realize that it's not that easy.
07:29 So attorney, what is your prognosis right now?
07:31 Because there's a lot of noise among lawmakers, among politicians.
07:37 The Senate is not for the people's initiative while the lower house is.
07:42 And then of course, the lower house wants these economic provisions in place before
07:47 the state of the nation address of the president.
07:51 What is your outlook?
07:52 Will it happen in 2024?
07:54 Because here in our country, everything is political.
07:59 And I'm not a political analyst or an expert on that matter.
08:06 But I would say this, as long as the two houses will support the president's declaration that
08:14 we have to change the economic provision because we want to be up at par with world standard.
08:25 More liberalized.
08:26 Yeah, more liberalized.
08:28 And that has to be clarified also.
08:30 I think it's doable because as I've said, the politics will come into play.
08:37 The lower house will have to agree with the Senate's suggestion that instead of the people's
08:42 initiative, let's have a suggestion wherein the two houses will suggest and vote for the
08:49 changes.
08:50 And on a scale of one to ten, one, this economic provision charter change will fail, ten, it
08:58 will succeed.
08:59 Where are you?
09:00 While I'm always optimistic about things with this charter change, I'm on probably between
09:09 five and six.
09:10 Neutral.
09:11 Neither here nor there.
09:12 We still do not know what is likely to materialize.
09:16 Thank you so much for this Economic Cha-Cha Exchange, Business and Commercial Law Professor
09:22 Antonio Ligon.
09:23 Thank you so much.
09:25 Here now are the week's top business stories.
09:27 Finance Secretary Ralph Recto won't raise taxes this year citing high prices.
09:31 His predecessor Ben Giochno proposed increasing taxes for junk food and sweetened beverages.
09:37 The Bank of Central says it is unlikely to cut the cost of borrowing in next month's
09:41 Monetary Board meeting.
09:43 And the U.S. economy grew much faster than expected last year to two and a half percent.
09:49 And straight ahead on the Exchange where your business is our business.
09:53 You get the insights of a constitutional law expert on this latest push to amend economic
09:58 provisions in the Constitution.
10:00 Edwin LaCherda joins us next.
10:02 And our foreign chambers among those who want economic charter change, we have an exchange
10:08 with the American Chamber of Commerce right here on CNN Philippines.
10:13 News you can use.
10:14 News you can trust.
10:15 [Music]
10:27 you
Comments