He also plans to spend more to address crumbling infrastructure and make it easier to do business overall, Carlos Dominguez, widely tipped to win a cabinet post, told reporters.
"We will ensure the attractiveness of the Philippines to foreign direct investment by addressing the restrictive economic provisions of the constitution," he added.
Broad goals of Duterte's economic strategy was unveiled three days after the long-time mayor of the southern city of Davao won a landslide presidential election victory. He is due to be sworn into office on June 30.
Critics say part of the problem was inadequate investment and job creation, partly due to foreign investment restrictions in the Philippine constitution.
Foreign entities cannot own more than 40 per cent equity in certain businesses, including those requiring franchises granted by parliament, such as aviation and telecommunications.
Some economic sectors are outrightly off limits to foreign investment, including most retail activities, broadcasting, domestic shipping and pharmaceuticals.
Dominguez said the proposed changes would be done by a constitutional convention to be called by Duterte.
However he gave no timetable nor provide specifics.
Dominguez, a wealthy businessman based in Davao, said infrastructure spending would rise to 5.0 per cent of total economic output, compared with a 2.3 per cent average in the past 30 years.
The pledge would addresses monstrous traffic jams, crumbling rail systems and poor telephone and Internet services that, along with his hardline anti-crime position, drove the Duterte election campaign.
Global credit rating outfit Standard and Poor's warned last month that poor infrastructure could cloud the Philippines' efforts to raise to USD 3,000 the average annual income for every Filipino next year.
He said the government will also revise the income tax rate to bring relief to employees earning half a million pesos (about USD 10,700) a year or less.