Philippine investment policy aims to attract, promote, and welcome productive foreign investments in activities that significantly contribute to national industrialisation and socio-economic development to the extent allowed by the Constitution and relevant laws. This policy is set forth in the Foreign Investments Act of 1991, which provides for the formulation of a Foreign Investment Negative List (“Negative List”). The Negative List enumerates economic activities where foreign equity is either prohibited or limited to a certain percentage, and is amended at least every two years.
On 29 October 2018, President Rodrigo Duterte signed Executive Order No. 65 (“EO 65”) to issue the 11th Foreign Investment Negative List (“11th Negative List”). The 11th Negative List updates the 10th Negative List, which was promulgated more than 3 years ago under Executive Order No. 184.
Compared to the 10th Negative List, the 11th Negative List is less restrictive since it now allows full foreign participation in 5 investment areas or activities and relaxes foreign equity restrictions by allowing up to 40% foreign participation in 3 sectors. The following table outlines the changes introduced by the 11th Negative List in the following investment areas: