‘Local investors will be protected’

LUCENA CITY: Quezon 2nd District Rep. David “Jay-jay’’ Suarez said they will put safeguards in place to protect local investors when the House of Representatives tackles the proposed amendments on the economic provisions of the Constitution on Monday, February 26.

“As we push for the opening up for foreign investors, we are also aware of the need to protect our local industry,” Suarez told The Manila Times in a phone interview on Sunday, February 25. He acknowledged that local businesses are the lifeblood of the country’s economy.

However, he said the proposed amendments to some economic provisions of the Constitution are expected to bring in job opportunities for local residents.

One specific provision is to amend the 60-40 foreign investment ownership in which a foreigner is allowed to own up to 40 percent of the investment he or she intends to put up, leaving the 60 percent of the corporation to be controlled or owned by a Filipino citizen.

Under the proposed amendment, a foreign investor will be allowed 100 percent ownership.

Suarez cited as example the almost 300 South Korean corporations which recently stopped operations in China. Because of the economic restrictions, only three decided to transfer their business here, with the others opting to go to Thailand, Malaysia and Vietnam.

Suarez said the House Committee as a whole will discuss the Resolution of Both Houses 7 (RBH 7) starting on Monday.

Suarez expressed hope that the Senate will speed up the approval of its own version of the bill.