Press Release - Allowing foreign ownership is only a first step in promoting internationalization in education - EDCOM 2 Executive Director

The Second Congressional Commission on Education (EDCOM 2) underlined that amending the 1987 Constitution to allow foreign ownership of higher education institutions (HEIs) is only the first step to promote internationalization in the Philippine education system.

In a hearing of the Committee on Constitutional Amendments and Revision of Codes (Subcommittee on Senate Resolution of Both Houses No. 6) on February 20, EDCOM 2 Executive Director Dr. Karol Mark Yee presented a comparative study of foreign ownership policies of educational institutions in ASEAN, and considerations that the government must take into account.

Strictest policies in foreign ownership of schools in ASEAN

Initial analysis of policies in ASEAN shows that the Philippines is one the strictest among in terms of foreign ownership of educational institutions, both basic and higher education.

Currently, the 1987 Constitution allows the establishment of international schools permitted that they are: 1) established by religious groups and mission boards, 2) established for foreign diplomatic personnel and their dependents, and/or 3) established for foreign temporary residents.

"Based on our research, within ASEAN, only the Philippines has foreign ownership, establishment, and enrollment restrictions stipulated in the Constitution, whereas other countries only indicate this via legislation", EDCOM 2 Executive Director Dr. Karol Mark Yee said.

Dr. Yee also noted during the hearing that, "Allowing foreign ownership is just the first step. Even in Singapore and Malaysia, they rolled out government incentives to encourage the establishment of international institutions", he said. He likewise noted that this will require a review of immigration and visa requirements, labor laws, professional regulatory restrictions

In Malaysia, international non-profit schools enjoy 100% income tax exemption, whereas private schools, although less, still enjoy income tax relief at 70%. In Vietnam, international schools have corporate income tax exemption for 4 years and 50% reduction of tax payable for the next 5 years. International schools are also exempted from non-agricultural land use tax. Additionally, a VAT