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)
3
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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