Third Regular Foreign Investment Negative List (E.O. No. 11)
Source:
"How to Invest in the Philippines" by PricewaterhouseCoopers Philippines (printed with permission from author)

No Foreign Equity

1. Mass media, except recording (Article XVI, Section II of the Constitution; Presidential Memorandum dated May 4, 1994)

2. Services involving the practice of licensed professions save in cases prescribed by law. [Article XIV Section 14 of the Constitution; Section 1 of Republic Act (RA) 5181]

3. Retail Trade (Section 1 of RA 1180) ^(a)

4. Cooperatives (Chapter iii, Article 26 of RA 6938)

5. Private security agencies (Section 4 of RA 5487)

6. Small-scale mining (Section 3 of RA 7076)

7. Utilization of marine resources in archipelagic waters, territorial and exclusive economic zone (Article XII, Section 2 of the Constitution)

8. Ownership, operation and management of cockpits [Section 5 of Presidential Decree (PD) 449]

9. Manufacture, repair, stockpiling and/or distribution of nuclear weapons. (Article II, Section 8 of the Constitution)^(b)

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)^(b)

11. Manufacture of firecrackers and other pyrotechnic devices (Section 5 of RA 7183)

Notes:

1. Amended by RA No. 8762; see pages 31 & 32 on Retail Trade for the update
2. For items 9 and 10, domestic investments are also prohibited (Article II, Section 8 of the Constitution and conventions / treaties to which the Philippines is a signatory).

Up to Twenty-Five Percent Equity

12. Private recruitment, whether for local or overseas employment (Article 27 of PD 442)

13. Contracts for the construction and repair of locally funded public works except:

1. infrastructure/development projects covered in RA 7718 or the expanded BOT Law; and
2. projects which are foreign funded or assisted and required to undergo international competitive bidding [Commonwealth Act (CA) 541 as amended by PD 1594; letter of Instruction No. 630; section 2a of RA 7718].

Up to Thirty Percent Foreign Equity

14. Advertising (Article XVI, Section 11 of the Constitution)

Up to Forty Percent Foreign Equity

15. Exploration, development and utilization of natural resources

Note: Full foreign participation is allowed through financial or technical assistance agreement with the President (Article XII, Section 2 of the Constitution)

16. Ownership of private lands (Article XII, Section 7 of the Constitution, Chapter 5, Section 22 of CA 141)

17. Operation and management of public utilities (Article XII, Section 11 of Constitution; Section 16 of CA 146)

18. Ownership/establishment and administration of educational institutions (Article XIV, Section 2 of the Constitution)

19. Engaging in the rice and corn industry (PD 194)

20. Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municvipal corporation (Section 1 of RA 5183)

21. Project proponent and facility operator of a BOT project requiring a public utilities franchise (Article XII, section 11 of the Constitutions; Section 2a of RA 7718)

22. Operation of deep sea commercial fishing vessels (Section 27 of RA 8550)

23. Adjustment companies (Section 323 of PD 612 as amended by PD 1814)

24. Ownership of condominiums (Section 5 of RA 4726)

Up to Sixty Percent Foreign Equity

25. Financing companies regulated by the SEC (Section 6 of RA 5980, as amended by RA 8556)

26. Investment houses regulated by the SEC (PD 129 as amended by RA 8366)

Note: For items 25 and 26, 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.

Up to Forty Percent Foreign Equity

27. Manufacture, repair, storage and/or distribution of products and ingredients used in the manufacture of firearms, gunpowder, dynamite, ingredients used in making explosives, telescopic sights and other similar devices requiring Philippine National Police clearance. (RA 7042, as amended by RA 8179)

28. Manufacture, repair, storage and/or distribution of products such as guns, other ammunitions, military aircraft, vessels, equipment and training devices and parts and components thereof, requiring Department of National defense (DND) clearance, and others as may be determined by the Secretary of the DND. (RA 7042, as amended by Republic Act 8179)

29. Manufacture and distribution of dangerous drugs (RA 7041, as amended by RA 8179)

30. Sauna and steam bathhouses, massage clinics and other like activities regulated by law because of risk they impose to public health and morals (RA 7042, as amended by RA 8179)

31. Other forms of gambling, e.g., race track operation (RA 7042, as amended by RA 8179)

32. Domestic market enterprises with paid-in equity capital of less than the equivalent of US $200,000 (RA 7042, as amended by RA 8179)

33. Domestic market enterprises which involve advanced technology or employ at least 50 direct employees, with paid-in-capital of less than the equivalent of US $100,000 (RA 7042, as amended by RA 8179)

Source:
• PricewaterhouseCoopers Philippines