Update of the foreign investment negative list
PHILIPPINE PRESIDENT Rodrigo R. Duterte has signed an order updating the list of investment areas where foreign ownership is restricted or prohibited.
The decree of 12e The negative list of foreign investments no longer includes the manufacture and distribution of products requiring authorization from the Ministry of Defense.
On the previous list published by Mr. Duterte in 2018, such products including weapons and ammunition of war, military ammunition, guided missiles, tactical aircraft, space vehicles and military communication equipment were limited to 40% capital. strangers.
The order, signed on June 27, largely maintained the status quo, which prohibits foreign participation in mass media except for registration and internet activity.
It also reserves for Filipinos the exercise of liberal professions, cooperatives, small-scale mining, the operation of private detective agencies, guards or security guards, the use of marine resources in the waters archipelagic and small-scale use of natural resources in rivers, lakes, bays and lagoons.
Ownership, operation and management of cockpits are also restricted to locals; manufacture, repair, storage and distribution of biological, chemical and radiological weapons and anti-personnel mines; and manufacture of Ifcrackers and other pyrotechnic devices.
It also prevents foreign participation in retail businesses with paid-up capital of less than $25 million, which is well above the previously required paid-up capital of $2.5 million.
The order authorizes 25% foreign capital in private recruitment, whether for local or overseas employment, and construction contracts for defense-related structures.
A 30% foreign equity stake in advertising was retained. It also allows for 40% foreign participation in infrastructure projects; exploration, development and use of natural resources; ownership of private land; operation of public services; educational institutions other than those established by religious groups and mission boards.
Cultivation, production, milling, processing, trading except retail sale of rice and maize will also be limited to 30% foreign ownership.
The order also retained 40% foreign ownership in contracts to supply materials, goods, and products to corporations and government agencies; operation of commercial fishing vessels on the high seas; ownership of condominium units; and private radio communication networks.
The Amended Foreign Investment Act of 1991 provides for updates to the Foreign Investment Negative List, which indicates which activities are open to foreign investors and restricted to Filipinos. — Kyle Aristopher T. Atienza