11th Regular Foreign Investment

Negative List A & B

Whereas, Republic Act No. 7042, also known as the “Foreign Investment Act of
1991”, as amended, mandates the formulation of a Regular Foreign Investment
Negative List, covering investment areas or activities which are open to foreign
investors and/or reserved to Filipino nationals;
Whereas, there is a need to formulate the Eleventh Regular Foreign Investment
Negative List, replacing the Tenth Regular Foreign Investment Negative List, to
reflect changes to List A and List B, pursuant to existing laws, consistent with the
policy to ease restrictions on foreign participation in certain investment areas or
activities;

Only the investment areas and/or activities listed in the attached Eleventh
Regular Foreign Investment Negative List shall be reserved for Philippine
nationals, subject to the exceptions and conditions indicated therein.

Amendments to List A may be made at any time to reflect changes instituted in

specific laws, while amendments to List B shall not be made more often than
once every two years, pursuant to Section8 of R.A. 7042, as amended, and its
revised implementing rules and regulations.
11th Regular Foreign Investment Negative List A & B
issued on the 29th day of October, 2018

LIST A: FOREIGN OWNERSHIP IS LIMITED BY MANDATE OF THE

CONSTITUTION AND SPECIFIC LAWS
No Foreign Equity
1. Mass Media, except recording (Art. XVI, Sec. 11 of the 1987 Constitution;
Presidential Memorandum dated 05 May 1994) and internet business (DOJ
Opinion No. 40, s. 1998) 1
2. Practice of Professions 2 (Art. XII, Sec. 14 of the Constitution, Sec. 1 of R.A.
No. 5181, Sec. 7[j] of R.A. No. 8981), including Radiologic and x-ray technology
(R.A. No. 7431), Criminology (R.A. No. 6506), Law (Art. VIII, Section 5 of the
Constitution; Rule 138, Sec. 2 of the Rules of Court of the Philippines), and
Marine deck officers and marine engine officers (R.A. No. 10635), subject to the
Annex on Professions attached herewith and forming an integral part of this
document, 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 (R.A. No. 8292),
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 US$2,500,000 (Sec. 5
of R.A. 8762)3
4. Cooperative (Ch. III, Art. 26 of R.A. 6938 as amended by Ch. II, Art. 10 of R.A.
No. 9250)
5. Organization and operation of private detective, watchmen or security guards
agencies (SEC. 4 of R.A. 5487)
6. Small-scale mining (Sec. 3 of R.A. 7076)
7. Utilization of marine resources in archipelagic waters, territorial sea, and
exclusive economic zone as well as small-scale utilization of natural resources in
rivers, lakes, bays, and lagoons (Art. XII, Sec. 2 of the Constitution)
8. Ownership, operation and management of cockpits (Sec. 5 of P.D. 449)
9. Manufacture, repair, stockpiling and/or distribution of nuclear weapons (Art. II,
Sec. 8 of the Constitution)4
10. Manufacture, repair, stockpiling and/or distribution of biological, chemical and
radiological weapons and anti-personal mines (various treaties to which the
Philippines is a signatory and conventions supported by the Philippines)5
11. Manufacture of firecrackers and other pyrotechnic devices (Sec. 5 of R.A.
7183)
Up to Twenty-Five Percent (25%) Foreign Equity
12. Private recruitment, whether for local or overseas employment (Art. 27
of P.D. 442)
13. Contracts for the construction of defense-related structures (Sec. 1 of C.A.
541)
Up to Thirty Percent (30%) Foreign Equity
14. Advertising (Art. XVI, Sec. 11 of the Constitution)

Up to Forty Percent (40%) Foreign EquitySubject to applicable regulatory

frameworks, contracts for the construction and repair of locally-funded public
works (SEC. 1 o C.A. No. 541, Letter of Instruction No. 630), except:
a. Infrastructure/development projects covered in R.A. No, 7718; and
b. Projects which are foreign-funded or assisted and required to undergo
international competitive bidding (Sec. 2[a]of R.A. No. 7718)6
Exploration, development and utilization of natural resources (Art. XII, Sec. 2 of
the Constitution)7
Ownership of private lands (Art. XII, Sec. 7 of the Constitution; Sec. 22 of C.A.
No. 141; Sec. 4 of R.A. No 9182)

Operation of public utilities (Art. XII, Sec. 11 of the Constitution; Sec. 16 of C.A.
No. 146; Sec. 2(a) of R.A. No. 7718),8 except power generation and the supply of
electricity to the contestable market (Sec. 6 and Sec. 29, respectively, of R.A.
No. 9136) and such other like businesses or services not covered by the
definition of public utilities9
Educational institutions other than those established by religious groups and
mission boards, for foreign diplomatic personnel and their dependents, and other
foreign temporary residents (Art. XIV, Sec. 4 of the Constitution),10 of for short-
term high-level skills development that do not form part of the formal education
system as defined in Sec. 20 of Batas Pambansa No.232 (1982)
Culture, production, milling, processing, trading except retailing, of rice and corn
and acquiring, by barter, purchase or otherwise, rice and corn and the by-
products thereof (Sec. 5 of P.D. No. 194)11
Contracts for the supply of materials, goods and commodities to government-
owned or controlled corporation, company, agency or municipal corporation (Sec.
1 of R.A. No. 5183)12
Operation of deep sea commercial fishing vessels (Sec. 27 of R.A. No. 8550, as
amended by R.A. No. 10654)

Ownership of condominium units (Sec. 5 of R.A. No. 4726)

Private radio communications network (Art. XII, Sec. 11 of the Constitution, NTC
Memorandum Circular No. 10-8-91)

1
 DOJ Opinion No. 40 (s. 1998) uses the term “Internet Business” to refer to
internet access providers that merely serve as carriers for transmitting message,
rather than being the creator of messages/information.
2
 Section 1(b) of Professional Regulation Commission Resolution No. 2012-668
defines ‘practice of a profession” as an “activity/undertaking rendered by a
registered and licensed professional or a holder of a Special Temporary Permit
as defined in the scope of practice of a professional regulatory law.”
3
 Full foreign participation is allowed for retail trade enterprises: (a) with paid-up
capital of US$2,500,000 or more provided that investments for establishing a
store is not less than US$830,000; or (b) specializing in high end or luxury
products, provided that the paid-up capital is not less than US$250,000 (Sec. 5 of
R.A. No. 8762).
4
 Domestic investments are also prohibited (Art II, Sec 8 of the Constitution;
Conventions/Treaties to which the Philippines is a signatory).
5
 Domestic investments are also prohibited (Art II, Sec 8 of the Constitution;
Conventions/Treaties to which the Philippines is a signatory).
6 
Section 2(a) of R.A. No. 7718 states that “[f] or the construction stage of these
infrastructure projects, the project proponent may obtain financing from foreign
and/or domestic sources and/or engage the service of a foreign and/or Filipino
contractor. Provided, That, in case an infrastructure of a development facility’s
operation requires a public utility franchise, the facility operator must be Filipino
of if a corporation, it must be duly registered with the Securities and Exchange
Commission and owned up to at least sixty percent (60%) by Filipinos Provided
further, That in the case of foreign contractors, Filipino labor shall be employed or
hired in the different phases of the construction where Filipino skills are available
xxx”
7
 Full foreign participation is allowed through financial or technical assistance
agreement entered into with the President (Art. XII, Sec. 2 of the Constitution).
8
 The Participation of foreign investors in the governing body of any public utility
enterprise shall be limited to their proportionate share in its capital, and all the
executive and managing officers of such corporation or association must be
citizens of the Philippines (Article XII, Section 11 of the Constitution).
9
 A “public utility” is a business or service engaged in regularly supplying the
public with some commodity or service of consequence such as electricity, gas,
water, transportation, telephone or telegraph service (Supreme Court ruling in JG
Summit Holdings v. Court of Appeals, et al., September 24, 2003).
10
 Control and administration of educational institutions shall be vested in citizens
of the Philippines (Art. XIV, Sec.4[2] of the Constitution).
11 
Full foreign participation is allowed provided that with the 30-year period from
start of operation, the foreign investor shall divest a minimum of sixty-percent
(60%) of their equity to Filipino citizens (Sec. 5 of PD No. 194; NFA Council
Resolution No. 193, s. 1998).
12
 A contract may be awarded to any contractor or bidder who is a citizen,
corporation or association of a foreign country the or regulations of which grant
similar rights or privileges to citizens of the Philippines (Sec. 1 of R. A. No. 5183).
LIST B: FOREIGN OWNERSHIP IS LIMITED FOR REASONS OF SECURITY,
DEFENSE, RISK TO HEALTH AND MORALS AND PROTECTION OF SMALL
AND MEDIUM-SCALE ENTERPRISES
Up to Forty Percent (40%) Foreign Equity
1.       Manufacture, repair, storage, and/or distribution of products and/or
ingredients requiring Philippine National Police (PNP) clearance:
a. Firearms (handguns to shotguns), parts of firearms and ammunition therefore,
instruments or implements used or intended to be used in the manufacture of
firearms
b. Gunpowder
c.  Dynamite
d. Blasting Supplies
e. Ingredients used in making explosives
i. Chlorates of potassium and sodium
ii. Nitrates of ammonium, potassium, sodium barium, copper (11), lead (11),
calcium and cuprite
iii. Nitric acid
iv. Nitrocellulose
v. Perchlorates of ammonium, potassium and sodium
vi. Dinitrocellulose
vii. Glycerol
viii.  Amorphous phosphorus
ix. Hydrogen peroxide
x. Strontium nitrate powder
xi. Toluene

f.        Telescopic sights, sniper scope and other similar devices

However, the manufacture or repair of these items may be authorized by the
Chief of the PNP to non-Philippine nationals; Provided that a substantial
percentage of output, as determined by the said agency, is exported. Provided
further that the extent of foreign equity ownership allowed shall be specified in
the said authority/clearance (R.A. 7042 as amended by R.A. 8179).
2.      Manufacture, repair, storage and/or distribution of products requiring
Department of National Defense (DND) clearance:

a.      Guns and ammunition for warfare

b.      Military ordnance and parts thereof (e.g., torpedoes, depth charges, bombs,
grenades, missiles)
c.       Gunnery, bombing and fire control systems and components
d.      Guided missiles/missile systems and components
e.      Tactical aircraft (fixed and rotary-winged0, parts and components thereof
f.        Space vehicles and component systems
g.      Combat vessels (air, land and naval) and auxiliaries
h.      Weapons repair and maintenance equipment
i.        Military communications equipment
j.        Night vision equipment
k.      Simulated coherent radiation devices, components and accessories
l.       Armament training devices
m.   Others as may be determined by the Secretary of the DND
However, the manufacture or repair of these items may be authorized by the
Secretary of National Defense to non-Philippine national; Provided further that
the extent of foreign equity ownership allowed shall be specified in the said
authority/clearance (R.A. 7042 as amended by R.A. 8179).

3.      Manufacture and distribution of dangerous drugs (R.A. 7042 as amended

by R.A. 8179)
4.      Sauna and steam bathhouses, massage clinics and other like activities
regulated by law because of risks posed to public health and morals (R.A. 7042
as amended by R. A. 8179)
5.      All forms of gambling (R.A. 7042 as amended by R.A. 8179) except those
covered by investment agreements with PAGCOR (P.D. 1869 as amended
by R.A. 9487)
6.      Domestic market enterprises with paid-in equity capital of less than the
equivalent of US$200,000 (R.A. 7042 as amended by R.A. 8179)

7.      Domestic market enterprises which involve advanced technology or employ

at least fifty (50) direct employees with paid-in equity capital of less than the
equivalent of US$100,000 (R.A. 7042 as amended by R.A. 8179)

ANNEX ON PROFESSIONS
A. Foreigners are allowed to practice the following professions in the
Philippines provided that their home country allows Filipinos to be
admitted to the practice of these professions:
 Accountancy (Sec. 34, R.A. No. 9298)
 Aeronautical engineering (Section 14, P.D. No. 1570)
 Agricultural and biosystems engineering (Sections 15 and 31, R.A.
No.10915)
 Agriculture (Section 27, PRC Resolution No. 2000-663)
 Architecture (Sections 13 and 27, R.A. No. 9266)
 Chemical engineering (Section 30, R.A. No. 9297
 Chemistry (Sections 16, 18, and 34, R.A. 10657
 Civil engineering (Section 25, R.A. NO, 544, as amended)
 Customs brokers (Section 25, R.A. No. 9280)
 Dentistry (Secs. 14 and 31, R.A. No. 9484)
 Electrical engineering (Section 38, R.A. No. 7920)
 Electronics engineering (Sections 13 and 33. R.A. No. 9292)
 Electronics technician (Sections 13 and 33. R.A. No. 9292)
 Environmental planning (Sections 18 and 28, R.A. No. 10587)
 Fisheries (Section 27, PRC Resolution No. 2000-664)
 Forestry (Sections 14 and 27, R.A. No.10690)
 Geodetic engineering (Section26, R.A. No. 8560)
 Geology (Sections 17 and 33, R.A. No. 10166)
 Guidance and counseling (Sections 13 and 29, R.A. No. 9258)
 Interior design (Sections 15 and 29 R.A. No. 10350)
 Landscape architecture (Sections 13 and 29) R.A. No. 9053)
 Librarianship (Sections 15 and 28, R.A. No. 9246)
 Master plumbing (Section 21, R.A. No. 1378)
 Mechanical engineering (Section 39, R.A. No. 8495)
 Medical technology (Section 27, R.A. No. 5527, as amended)
 Medicine* (Section 9, R.A. No. 2382, as amended)
 Metallurgical engineering (Sections 17 and 34, R.A. No. 10688)
  Midwifery (Section 22, R.A. No. 7392)
 Mining engineering (Sections 15, 16, and 28, R.A. No. 10698)
 Naval architecture (Sections 13 and 31 R.A. No. 10698)
 Nursing (Sections 13 and 20, R.A, No. 9173)
 Nutrition and dietetics (Sections 15 and 31, R.A. No. 10862)
 Optometry (Section 34, R.A. No. 8050)
 Pharmacy (Sections 14 and 21, R.A. No. 10918)
 Physical and occupational therapy (Sections 15 and 21, R.A. No. 5680)
 Psychology (Sections 12, 13 and 24, R.A. No. 10029)
 Real estate service (real estate consultant, real estate appraiser, real
estate assessor, real estate broker and real estate salesperson) (Sections
13 and 34, R.A. No. 10024)
 Respiratory therapy (Sections 13 and 34, R.A. No. 10024)
 Sanitary engineering (Section 32 R.A. No. 1364)
 Social work (Section 18, R.A. No. 4373, as amended)
 Teaching at elementary and secondary levels (Sections 15 and 24, R.A.
No. 7836, as amended)
 Veterinary medicine (Sections 15 and 31, R.A. No. 9268)
 Other professions as may be provided by law or by treaty where the
Philippines is a party
*For purposes of the Revised Foreign Investment Negative List,
ergotherapy, speech therapy, homeopathy and acupuncture are not
considered part of the medical profession and are therefore open to
foreigners.
B. Corporate practice is allowed in the following professions, subject to the
requirements and conditions under the pertinent professional regulatory
law:
 Aeronautical engineering (Section 28, P.D. No. 1570)
 Agricultural and biosystems engineering (Section 29, R.A. No. 10915)
 Architecture (Section 37, R.A. No. 9266)
 Chemistry (Section 35, R.A. No. 10657)
 Electronics engineering (Section 28, R.A. No. 9292)
 Environmental planning (Section 25, R.A. No. 10587)
 Forestry (Section 25, R.A. No. 10690)
 Guidance and counseling (Section 27, R.A. No. 9258)
 Interior design (Section 26, R.A. No 10350)
 Landscape architecture (Section 26, R.A. No. 9053)
 Naval Architecture (Section 30 [g], R.A. No. 10698)
 Psychology (Section 33, R.A. No. 10029)
 Real estate service (real estate consultant, real estate appraiser, real
estate assessor, real estate broker and real estate salesperson) (Section
32, R.A. No. 9646)
 Sanitary engineering (Section 30, R.A. No. 1364)
 Social work (Section 1[c]. R.A. No. 4373, as amended)