MANILA, Philippines — President Ferdinand Marcos Jr. issued Executive Order (EO) 113 updating the list of industries foreign entities are limited to or are not allowed to invest in.
Signed on April 13, EO 113, Promulgating the Thirteenth (13th) Regular Foreign Investment Negative List, breaks down industries that are “reserved to Philippine nationals, subject to the exceptions and conditions indicated therein.” As stated in the circular, industries such as mass media, including internet-based platforms; the corporate practice of professions like architecture; private security agencies; small-scale mining; and utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic zone, among others, are reserved for Filipinos.
An increase of up to 25 percent in foreign equity is allowed for the private recruitment sector and contracts for the construction of defense-related structures.
Up to 30 percent foreign equity is allowed for the advertising sector.
On the other hand, some of those where up to 40 percent foreign equity is authorized include ownership of lands; retail trade enterprise with paid-up capital of less than P25,000,000.00; educational institutions other than those established by religious groups and mission boards; and operation of public utilities, subject to existing laws and regulations.
Meanwhile, EO 113 allows 100 percent foreign equity in the operation and management of telecommunications “in case the country of the foreign national accords reciprocity to Philippine nationals, and up to 50 percent foreign equity in the absence of such reciprocity.”
