For those who want to invest in the Philippines, here is a list of investment areas or activities open to foreign investors and those exclusively reserved for Filipino nationals under the 12th Foreign Investment Negative List. The list already takes into account recent amendments under the Public Service Act and Retail Trade Law.
NO FOREIGN EQUITY
100 percent Filipino
1. Mass media, except recording and Internet business;
2. Practice of professions, including radiologic and x-ray technology, criminology, law, and marine deck officers and marine engine officers, subject to the Annex on Professions indicating the professions where (a) foreigners are allowed to practice in the Philippines subject to reciprocity; and (b) where corporate practice is allowed. Foreigners may teach at higher education levels, provided the subject being taught is not a professional subject (i.e., included in a government board or bar examination);
3. Retail trade enterprises with paid-up capital of less than P25 million.
4. Cooperatives unless investments of former natural-born citizens of the Philippines;
5. Organization and operation of private detective, watchmen or security guards agencies;
6. Small-scale mining;
7. Utilization of marine resources in archipelagic waters, territorial sea and exclusive economic zone;
8. Ownership, operation, and management of cockpits;
9. Manufacture, repair, stockpiling, and distribution of nuclear weapons;
10. Manufacture, repair, stockpiling, and/or distribution of biological, chemical, and radiological weapons, and anti-personnel mines; and
11. Manufacture of firecrackers and other pyrotechnic devices.
FOREIGN EQUITY
Up to 40 percent
1. Procurement of infrastructure and development of natural resources;
2. Exploration, development, and utilization of natural resources;
3. Ownership of private lands, except for natural-born citizens who have lost their Philippine citizenship and who have the legal capacity to enter into a contract under Philippine laws;
4. Operation of public utilities;
5. Educational institutions other than those established by religious groups and mission boards, foreign diplomatic personnel and their dependents, and other foreign temporary residents or for short-term high-level skills development that do not form part of the formal education system;
6. Small-scale mining;
7. Utilization of marine resources in archipelagic waters, territorial sea and exclusive economic zone;
(To be continued.)
***
For more of Dean Nilo Divina's legal tidbits, please visit www.divinalaw.com. For comments and questions, please send an email to cabdo@divinalaw.com.
