THIRD REGULAR FOREIGN INVESTMENTS
NEGATIVE LIST [Executive
Order No. 11 dated August 11, 1998]
LIST A:
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. Services involving
the practice of licensed professions save in cases prescribed by law.
a. Engineering
i.
Aeronautical Engineering
ii.
Agricultural Engineering
iii. Chemical
Engineering
iv. Civil Engineering
v. Electrical
Engineering
vi. Electronics
and Communication Engineering
vii. Geodetic
Engineering
viii. Mechanical Engineering
ix. Metallurgical
Engineering
x. Mining
Engineering
xi. Naval Architecture
and Marine Engineering
xii. Sanitary
Engineering
b. Medical 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
[Article XIV, Section 14 of the Constitution; Section 1 of R. A. No. 5181]
3. Retail Trade [Republic
Act No. 1180]
4. Cooperatives
[Chapter III, Article 26 of R. A. No. 6938]
5. Private Security
Agencies [Section 4 of R. A. No. 5487]
6. Small-scale
Mining [Section 3 of R. A. No. 7076]
7. Utilization
of marine resources in archipelagic waters, territorial sea, and exclusive
economic zone [Article XII, Section 2 of the Constitution]
8. Ownership,
operation and management of cockpits [Section 5 of Presidential Decree
No. 449]
9. Manufacture,
repair, stockpiling and/or distribution of nuclear weapons [Article II,
Section 8 of the Constitution]
10. Manufacture,
repair, stockpiling and/or distribution of biological, chemical and radiological
weapons [Various treaties to which the Philippines is a signatory and conventions
supported by the Philippines)1
11. Manufacture of firecrackers and other
pyrotechnic devices [Section 5 of R. A. No. 7183].
_______________________ [1/
Domestic investments are also prohibited (Article II, Section 8 of the
Constitution; Convention/Treaties to which the Philippines is a signatory)] _______________________
Up to Twenty-Five
Percent (25%) Foreign Equity
12. Private recruitment,
whether for local or overseas employment [Articles 27 of Presidential Decree
No. 442]
13. Contracts
for the construction and repair of locally-funded public works except:
a. Infrastructure/development
projects covered in R. A. No. 7718; and
b. Projects which
are foreign-funded or assisted and required to undergo international competitive
bidding [Commonwealth Act 541; Presidential Decree No. 1594; Letter
of Instructions No. 630; Section 2a of Republic Act No. 7718]
Up to Thirty
Percent (30%) Foreign Equity
14. Advertising
[Article XVI, Section 11 of the Constitution]
Up to Forty
Percent (40%) Foreign Equity
15. Exploration,
development and utilization of natural resources (Article XII, Section
2 of the Constitution)2
_____________
[2/
Full foreign participation is allowed through financial or technical assistance
agreement with the President (Article XII, Section 11 of the Constitution)] ___________________
16. Ownership of
private lands [Article XII, Section 7 of the Constitution; Chapter 5, Section
22 of Commonwealth Act No. 141]
17. Operation
and management of public utilities [Article XII, Section 11 of the Constitution;
Section 16 of Commonwealth Act No. 146]
18. Ownership/establishment
and administration of educational institutions [Article XIV, Section 2
of the Constitution]
19. Engaging in
the rice and corn administration [Presidential Decree No. 194].
20. Contracts
for the supply of materials, goods and commodities to government-owned
or controlled corporation, company, agency or municipal corporation.
[Section 1 of R. A. No. 5183]
21. Project proponent
and facility operator of a BOT project requiring a public utilities franchise
[Article XII, Section 11 of the Constitution; Section 2(a) of R. A. No.
7718]
22. Operation
of deep-sea commercial fishing vessels [Section 27 of R. A. No. 8550].
23. Adjustment
Companies [Section 323 of Presidential Decree No. 612 as amended by Presidential
Decree No. 1814].
24. Ownership
of condominiums [Section 5 of R. A. No. 4726].
Up to Sixty
Percent (60%) Foreign Equity
25. Financing
companies regulated by the Securities and Exchange Commission [SEC] [Section
6 of R. A. No. 5980 as amended by R. A. No. 8556]3
_____________
[3/
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 [Section 6 of R. A. No. 5980 as
amended by R. A. No. 8556; Presidential Decree No. 129 as amended by R.
A. No. 8366]. ___________________.
26. Investment houses
regulated by the SEC [ Presidential Decree No. 129 as amended by R. A.
No. 8366].
Harvard
Computer Systems, Inc.