Provides information on any manufacturing sectors or services where only citizens or a sub-set of the population in that country are allowed to own or sell.
Last Published: 7/18/2019

The 10th Regular Foreign Investment Negative List (FINL; http://www.sec.gov.ph/wp-content/uploads/2015/08/EONo.-184-The-Tenth-Regular-Foreign-Investment-Negative-List.pdf) of May 2015 lists investment areas/activities that are reserved for Philippine citizens.  It also specifies the percentages of foreign equity participation in areas/activities that are open to foreign investors. 
List A of the 10th FINL enumerates areas/activities where foreign ownership is prohibited or limited under the Philippine Constitution and specific laws, such the practice of certain professions; contracts for the construction of defense-related structures; contracts for the supply of materials, goods and commodities to government-owned or controlled corporations, companies, agencies or municipal corporations; and infrastructure/development projects covered by Republic Act No. 7718 or the BOT (Build, Operate and Transfer) Law (https://ppp.gov.ph/wp-content/uploads/2015/01/Republic-Act-7718.pdf).  List A may be amended any time to reflect changes brought about by new laws. 

List B contains the list of areas/activities where foreign ownership is limited for reasons of security, defense, risk to health and morals, and protection of small- and medium-scale enterprises.  The Philippine government allows up to 40 percent equity in areas/activities in List B, which includes manufacture, repair, storage, and/or distribution of products and/or ingredients requiring Philippine National Police or Department of National Defense clearances.  Amendments to List B can only be made once every two years in accordance with Republic Act. No. 7042 or the “Foreign Investments Act of 1991.”

The release of the Philippines Foreign Investment Negative List (FINL) in October 2018 made a little impact on the business community, which expected more important changes.  While they appreciated small victories such as the 100 percent foreign investment in internet and investment businesses and a foreign equity cap increase on foreign participation in infrastructure work for locally funded public projects, the community and the private sector, in general, had commented that genuine reform requires legislation.  Philippine Congress must consider passing laws that will allow less restrictions on foreign ownership and investment in the Philippines. 
 

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