President Ferdinand Marcos Jr. has updated the 12th Regular Foreign Investment Negative List (RFINL) into the 13th RFINL, which provides details on foreign ownership limitations for key areas or activities.

Executive Order 113, or Promulgating the 13th Regular Foreign Investment Negative List, signed by President Marcos on 13 April, states that updating the 12th RFINL to the 13th RFINL was by virtue of the recommendation of the Department of Economy, Planning and Development (DEPDev).

“Whereas, according to DEPDev, there is a need to amend the 12th RFINL to reflect changes to Negative Lists A and B, pursuant to existing laws and consistent with the policy to ease restictions on foreign participation in certain investment areas or activities,” the order stated.

Republic Act (RA) 7042 or the “Foreign Investments Act of 1991,” as amended by RA 8179 and 11647, mandates the formulation of an RFINL, covering investment areas or activities that are open to foreign investors and/or reserved for Filipinos.

President authorized to amend the RFINL

Further, the Marcos order stressed that Section 8 of RA 7042, as amended, authorizes the President to amend the RFINL upon the recommendation of the DEPDev.

Section 1 of the order states that under the 13th RFINL, only the investment areas and/or activities listed in the attached 13th RFINL shall be reserved for Philippine nationals, subject to the exceptions and conditions indicated therein.

Under the 13th RFINL, no foreign equity is allowed in mass media companies except for those involved in film and music recording; private security agencies; corporate architecture; cooperatives; small-scale mining; marine resources; cockpits; manufacture, repair, stockpiling and/or distribution of nuclear weapons; manufacture and retail of pyrotechnic devices; private recruitment whether for local or overseas employment; and construction of defense-related structures.