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PHILIPPINE FOREIGN INVESTMENT LAWS

This web page features the full text of
List A
of the
Fifth Regular Foreign Investment Negative List
of the
Foreign Investments Act of the Philippines.


FIFTH REGULAR FOREIGN INVESTMENT NEGATIVE LIST 
[Executive Order No. 139 dated October 22, 2002]


LIST A:chanroblesvirtuallawlibrary
FOREIGN OWNERSHIP IS LIMITED
BY MANDATE OF THE CONSTITUTION AND SPECIFIC LAWS

No Foreign Equity

1.  Mass Media except recording [Article XVI, Section 11 of the Constitution; Presidential Memorandum Order dated 04 May 1994].

2.  Practice of professions 1

      a.  Engineering
         
        i.  Aeronautical

        ii.  Agricultural

        iii.  Chemical

        iv.  Civil

        v.  Electrical

        vi.  Electronics and Communication

        vii.  Geodetic

        viii.  Mechanical

        ix.  Metallurgical

        x.  Mining

        xi.  Naval Architecture and Marine

        xii.  Sanitary

      b.  Medicine and Allied Professions
        i.  Medicine

        ii.  Medical Technology

        iii.  Dentistry

        iv.  Midwifery

        v.  Nursing

        vi.  Nutrition and Dietetics

        vii.  Optometry

        viii.  Pharmacy

        ix.  Physical and Occupational Therapy

        x.  Radiologic and X-ray Technology

        xi.  Veterinary Medicine

      c.  Accountancy

      d.  Architecture

      e.  Criminology

      f.  Chemistry

      g.  Customs Brokerage

      h.  Environmental Planning

      i.  Forestry

      j.  Geology

      k.  Interior Design

      l.  Landscape Architecture

      m.  Law

      n.  Librarianship

      o.  Marine Deck Officers

      p.  Marine Engine Officers

      q.  Master Plumbing

      r.  Sugar Technology

      s.  Social Work

      t.  Teaching

      u.  Agriculture

      v.  Fisheries

            (Art. XII, Sec. 14 of the Constitution; Sec. 1 of R.A. 5181)
    3.  Retail trade enterprises with paid-up capital of less than US$ 2,500,00 (Sec. 5 of R.A. 8762) 2


    4.  Cooperatives (Ch. III, Art. 26 of R.A. 6938)

    5.  Private Security Agencies (Sec. 4 of R.A. 5487)

    6.  Small-scale Mining (Sec. 3 of R.A. 7076)

    7.  Utilization of Marine Resources in archipelagic waters, territorial sea, and exclusive economic zone (Art. XII, Sec. 2 of the Constitution)

    8.  Ownership, operation and management of cockpits (Sec. 5 of P.D. 449)

    9.  Manufacture, repair, stockpiling and/or distribution of nuclear weapons (Art. II Sec. 8 of the Constitution) 3

    10.  Manufacture, repair, stockpiling and/or distribution of biological, chemical and radiological weapons and anti-personal mines (Various treaties to which the Philippines is a signatory and conventions supported by the Philippines) 3

    11.  Manufacture of firecrackers and other pyrotechnic devices (Sec. 5 of R.A. 7183)

Up to Twenty Percent (20%) Foreign Equity
    12.  Private radio communication network (R.A. 3846)
Up to Twenty-Five Percent (25%) Foreign Equity
    13.  Private recruitment, whether for local or overseas employment (Art. 27 of P.D. 442)

    14.   Contracts for the construction and repair of locally-funded public works (Sec. 1 of C.A. 541, LOI 630) except:chanroblesvirtuallawlibrary
      a.  infrastructure/development projects covered in R.A. 7718; and

      b.  projects which are foreign funded or assisted and required to undergo international competitive bidding(Sec. 2(a) of R.A. 7718)
    15.  Contracts for construction of defense-related structure (Sec. 1 of C.A. 541)
Up to Thirty Percent (30%) Foreign Equity
    16.  Advertising (Art. XVI, Sec. 11 of the Constitution)
Up to Forty Percent (40%) Foreign Equity
    17.  Exploration, development and utilization of natural resources (Art. XII, Sec. 2 of the Constitution) 4

    18.  Ownership of Private Lands (Art. XII, Sec. 7 of the Constitution; Ch. 5, Sec. 22 of C.A. 141)

    19.  Operation and management of public utilities (Art. XII, Sec. 11 of the Constitution; Sec. 16 of C.A. 146)

    20.  Ownership/establishment and administration of educational institutions (Art. XIV, Sec. 4 of the Constitution)

    21.  Culture, production, milling, processing, trading excepting retailing, of rice and corn and acquiring, by barter, purchase or otherwise, rice and corn and the by-products thereof (Sec. 5 of P.D. 194; Sec. 15 of R.A. 5762) 5

    22.  Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municipal corporation (Sec. 1 of R.A. 5183)

    23.  Project Proponent and facility Operator of a BOT project requiring a public utilities franchise (Art. XII, Sec. 11 of the Constitution; Sec. 2a of R.A. 7718)

    24.  Operation of deep sea commercial fishing vessels (Sec. 27 of R.A. 8550)

    25.  Adjustment Companies (Sec. 323 of P.D. 612 as amended by P.D. 1814)

    26.  Ownership of condominium units where the common areas in the condominium projects are co-owned by the owners of the separate units or owned by a corporation (Sec. 5 of R.A. 4726)

Up to Sixty Percent (60%) Foreign Equity
    27.  Financing companies regulated by the Securities and Exchange Commission (Sec. 6 of R.A. 5980 as amended by R.A. 8556) 6

    28.  Investment houses regulated by the SEC (Sec. 5 of P.D. 129 as amended by R.A. 8366) 6



1 This is limited to Filipino citizens save in cases prescribed by law

2 Full foreign participation is allowed for retail trade enterprises: (a) with paid-up capital of US$2,500,000 or more provided that investments for establishing a store is not less than US$830,000; or (b) specializing in high end or luxury products, provided that the paid-up capital per store is not less than US$250,000 (Sec. 5 of R.A. 9762)

Domestic investments are also prohibited (Art II, Sec. 8 of the Constitution; Conventions/Treaties to which the Philippines is a signatory)

4 Full foreign participation is allowed through financial or technical assistance agreement with the President Art. XII, Sec. 2 of the Constitution)

5 Full foreign participation is allowed provided that within the 30-year period from start of operation, the foreign investor shall divest a minimum of 60 percent of their equity to Filipino citizens (Sec. 5 of P.D. 194; NFA Council Resolution No. 193 s. 1998)

6 No foreign national may be allowed to own stock in financing companies or investment houses unless the country of which he is a national accords the same reciprocal rights to Filipinos (Sec. 6 of R.A. 5980 as amended by R.A. 8556; P.D. 129 as amended by R.A. 8366)

 

Fifth Regular Foreign Investments Negative List (Executive Order No. 139)
ANNEX "A" - LIST A
ANNEX "B" - LIST B
 
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