Investment News Analysis Reforms

Philippines’ own goal

Doing Business 2017_Part 4: Registering property
Doing Business 2017_Part 4: Registering property

While the Philippines has certainly improved in some areas in terms of doing business (shorter processing and procedure times, a lowering of costs) when it come to owning a business — the subject of today’s infographic — the Philippines has a major handicap. Investors are deterred by an article in the country’s Constitution which limits foreign ownership of a Philippine-registered company to 40%. This protectionist clause succeeds solely in benefiting the oligarchs and the large corporations and keeps the consumer prices of goods and services high within the domestic market.  It also makes the country less competitive as a destination for investor funds.

5 Comments

  • Again, the oligarchs in question–most laws are planned to benefit the POWERFUL! No taxes for religious organizations is one of them—-viewed as a charity which they do not need and deprives the indigent!

  • LIBERALISED ECONOMY ! TO DETER THE MONOPOLY OF ABUSIVE OLIGARCH IN THIS COUNTRY. OPEN TO ALL PLAYERS! FOLLOW INDUSTRIALISED COUNTRYS ECONOMIC POLICIES ! THIS COUNTRY HAS SUFFERED TOO MUCH MESIRY IN PROTECTIONISM !

  • That provision in the constitution lends credence to the protectionism attitude of the oligarchs and the landed politicos who took part in the formulation of the constitution. Other countries are liberal on that aspect of partnership and ownership since the land cannot be relocated to the country of the foreign investors anyway. Ownership may change hands but the land is immovable and therefore remains in our country. It’s high time to remove this 60-40 provision in the highest law of the nation.