5th Regular Foreign Investment Negative List

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

No Foreign Equity

  1. Mass Media except recording (Art. XVI, Sec. 11 of the Constitution; Presidential Memorandum dated 04 May 1994)

  2. Practice of professions 1

    1. Engineering

      1. Aeronautical

      2. Agricultural

      3. Chemical

      4. Civil

      5. Electrical

      6. Electronics and Communication

      7. Geodetic

      8. Mechanical

      9. Metallurgical

      10. Mining

      11. Naval Architecture and Marine

      12. Sanitary

    2. Medicine and Allied Professions

      1. Medicine

      2. Medical Technology

      3. Dentistry

      4. Midwifery

      5. Nursing

      6. Nutrition and Dietetics

      7. Optometry

      8. Pharmacy

      9. Physical and Occupational Therapy

      10. Radiologic and X-ray Technology

      11. Veterinary Medicine

    3. Accountancy

    4. Architecture

    5. Criminology

    6. Chemistry

    7. Customs Brokerage

    8. Environmental Planning

    9. Forestry

    10. Geology

    11. Interior Design

    12. Landscape Architecture

    13. Law

    14. Librarianship

    15. Marine Deck Officers

    16. Marine Engine Officers

    17. Master Plumbing

    18. Sugar Technology

    19. Social Work

    20. Teaching

    21. Agriculture

    22. Fisheries

(Art. XII, Sec. 14 of the Constitution; Sec. 1 of RA 5181)

  1. Retail trade enterprises with paid-up capital of not less than US$ 2,500,000.00 (Sec. 5 of RA 8762) 2

  2. Cooperatives (Ch. III, Art. 26 of RA 6938)

  3. Private Security Agencies (Sec. 4 of RA 5487)

  4. Small-scale Mining (Sec. 3 of RA 7076)

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

  6. Ownership, operation and management of cockpits (Sec. 5 of PD 449)

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

  8. 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

  9. Manufacture of firecrackers and other pyrotechnic devices (Sec. 5 of RA 7183)

Up to Twenty Percent (20%) Foreign Equity

  1. Private radio communication network (RA 3846)

Up to Twenty-Five Percent (25%) Foreign Equity

  1. Private recruitment, whether for local or overseas employment (Art. 27 of PD 442)

  2. Contracts for the construction and repair of locally-funded public works (Sec. 1 of CA 541, LOI 630) except:

    1. infrastructure/development projects covered in RA 7718; and

    2. projects which are foreign funded or assisted and required to undergo international competitive bidding(Sec. 2(a) of RA 7718)

  3. Contracts for construction of defense-related structure (Sec. 1 of CA 541)

Up to Thirty Percent (30%) Foreign Equity

  1. Advertising (Art. XVI, Sec. 11 of the Constitution)

Up to Forty Percent (40%) Foreign Equity

  1. Exploration, development and utilization of natural resources (Art. XII, Sec. 2 of the Constitution) 4

  2. Ownership of Private Lands (Art. XII, Sec. 7 of the Constitution; Ch. 5, Sec. 22 of CA 141)

  3. Operation and management of public utilities (Art. XII, Sec. 11 of the Constitution; Sec. 16 of CA 146)

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

  5. 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 PD 194; Sec. 15 of RA 5762) 5

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

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

  8. Operation of deep sea commercial fishing vessels (Sec. 27 of RA 8550)

  9. Adjustment Companies (Sec. 323 of PD 612 as amended by PD 1814)

  10. 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 pf RA 4726)

Up to Sixty Percent (60%) Foreign Equity

  1. Financing companies regulated by the Securities and Exchange Commission (Sec. 6 of RA 5980 as amended by RA 8556) 6

  2. Investment housed regulated by the SEC (Sec. 5 of PD 129 as amended by RA 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 RA 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 PD 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 RA 5980 as amended by RA 8556; PD 129 as amended by RA 8366)

 

LIST B: FOREIGN OWNERSHIP IS LIMITED FOR REASON OF SECURITY, DEFENSE, RISK TO HEALTH AND MORALS AND PROTECTION OF SMALL- AND MEDIUM-SCALE ENTERPRISES