Why It's More Than Time To Open Up the Economy of the Philippines
I have previously written against FLIPFAG economics. Now I will write on the benefits of an open economy. One can see how an open economy has benefited countries like Singapore, Taiwan, COMMUNIST China, Japan and the like. On the other hand, the Philippines suffers from the consequences of a closed economy. Here's what the government should understand and I hope they are greedy enough to consider the following benefits.
The idea that OFWs means Filipinos is taking over the world as I love to say it is absurd. When you step in foreign soil, you must bow down to its rules. When a foreigner is allowed 50% to 100% ownership in the Philippines, his/her firm must comply with the Philippines by laws or not be allowed to invest at all. That means, every foreign firm must pay up to the PAG-IBIG, BIR, DOLE, DTI and the like to get their firms up and running. Even if the firm can run without a Filipino partner, however they cannot open legally if they don't comply with the necessary agencies. More investments equals more money for the government. That means the Philippines is controlling the foreign firms, not the foreign firms controlling the Philippines.
So why do I suggest getting higher degrees of foreign ownership? Some foreign firms may want more than one partner. It will not be flexible with 60/40 compared to if they were allowed 50%-100%. For example, a foreign firm may have 50% and the two Filipino firms may have 25% each or he can have 40% ownership and both Filipino partners get 30%. It's a very flexible scheme that will allow foreigners and Filipino partners to work together. Flexible schemes introduce better schematics for foreigners and locals. Encouraging better joint venture packages to 100% ownership gives foreign firms every option they want. A 50% minimum joint venture is fair and just compared to 60/40. The reason is with equal ownership at minimum, it's very easy to be truly called partners. If this is encouraged, we can have more employment generated.
What happens next is that when there are more foreign investments, it means more revenues because of a high generation of both income and employment. Just think if foreign investment is higher, there will be no need for OFWs to bow down before foreigners abroad because their foreigner bosses bow down before the Philippine government. Wherever country you enter, you are not invading it, you are to bow down to it. A multinational firm pays taxes to wherever it earns income. Any income it makes in the Philippines is paid to the Philippines. Any income it makes in any country stays in that country. Any income it makes in its mother country stays in its mother country. Having more foreign investment means government revenues will go up. If employment is generated, remember every employee is entitled to SSS, PAG-IBIG and there are individual income taxes. Every employee generated must be registered which means more money to the government. This happens BECAUSE the foreign firms must comply with Filipino laws if they want to invest.