THIRD REGULAR FOREIGN INVESTMENTS
NEGATIVE LIST [Executive
Order No. 11 dated August 11, 1998]
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.
iv. Civil Engineering
and Communication Engineering
viii. Mechanical Engineering
xi. Naval Architecture
and Marine Engineering
b. Medical and Allied
and Occupational Therapy
and X-ray Technology
g. Customs Brokerage
k. Interior Design
o. Marine Deck
p. Marine Engine
q. Master Plumbing
s. Social Work
[Article XIV, Section 14 of the Constitution; Section 1 of R. A. No. 5181]
3. Retail Trade [Republic
Act No. 1180]
[Chapter III, Article 26 of R. A. No. 6938]
5. Private Security
Agencies [Section 4 of R. A. No. 5487]
Mining [Section 3 of R. A. No. 7076]
of marine resources in archipelagic waters, territorial sea, and exclusive
economic zone [Article XII, Section 2 of the Constitution]
operation and management of cockpits [Section 5 of Presidential Decree
repair, stockpiling and/or distribution of nuclear weapons [Article II,
Section 8 of the Constitution]
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].
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
for the construction and repair of locally-funded public works except:
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
[Article XVI, Section 11 of the Constitution]
Up to Forty
Percent (40%) Foreign Equity
development and utilization of natural resources (Article XII, Section
2 of the Constitution)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]
and management of public utilities [Article XII, Section 11 of the Constitution;
Section 16 of Commonwealth Act No. 146]
and administration of educational institutions [Article XIV, Section 2
of the Constitution]
19. Engaging in
the rice and corn administration [Presidential Decree No. 194].
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.
of deep-sea commercial fishing vessels [Section 27 of R. A. No. 8550].
Companies [Section 323 of Presidential Decree No. 612 as amended by Presidential
Decree No. 1814].
of condominiums [Section 5 of R. A. No. 4726].
Up to Sixty
Percent (60%) Foreign Equity
companies regulated by the Securities and Exchange Commission [SEC] [Section
6 of R. A. No. 5980 as amended by R. A. No. 8556]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.