By Darryl John Esguerra | Philippine News Agency
The Philippine government has retained longstanding foreign ownership restrictions in key sectors even as it continues to implement economic reforms aimed at attracting more investments.
President Ferdinand R. Marcos Jr. signed on Monday Executive Order (EO) 113, promulgating the 13th Regular Foreign Investment Negative List (FINL), which defines the scope and limits of foreign participation in various industries in accordance with the Foreign Investments Act of 1991. A copy of the issuance was released Thursday.
The FINL divides restrictions into List A (mandated by the Constitution/law) and List B (security, health, morals, and small-scale business protection).
Under the updated list, several industries remain closed to foreign investors or subject to strict limits. These include mass media, cooperatives, private security agencies, and small-scale mining, which are reserved for Filipinos with 0% foreign equity.
Foreign ownership is limited to up to 25% in private recruitment and construction of defense-related structures, while advertising remains capped at 30%.
In a wider range of sectors, foreign equity is limited to 40%, including public utilities, exploration and utilization of natural resources, educational institutions, ownership of private lands, commercial fishing, and certain government procurement activities, subject to conditions provided by law.
The list also provides for up to 100 percent foreign ownership in specific areas such as telecommunications operations, subject to reciprocity requirements, with a lower cap of 50% in the absence of such reciprocity, in following amendments to Republic Act 11659 or Public Service Act signed in March 2022.
The 13th FINL likewise reflects refinements from recent reforms, including liberalization in public services and the continued allowance of full foreign participation in certain renewable energy projects.
Meanwhile, List B retains restrictions on foreign participation in sensitive industries such as firearms and explosives, gambling, and micro and small domestic enterprises, citing the need to safeguard national security, public welfare, and local industries.
EO 113 will take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation. (PNA)
