duterte

Pres. Duterte signs EO updating foreign investment limitations

(Source: Inquirer.net | October 29, 2018)

President Rodrigo Duterte has recently signed Executive Order No. 65, updating the list of investment areas, which prohibits or limits foreign ownership in the Philippines.

According to the EO, no foreign equity is allowed under the following:

1.Mass media (except recording) and internet business
2.Practice of professions
3.Retail trade enterprises with paid-up capital of less than US$2, 5000, 000
Cooperatives
4.Organization and operation of private detective, watchmen, or security guard agencies
Small-scale mining
5.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
6.Ownership, operation and management of cockpits
manufacture, repair, stockpiling and/or distribution of biological, chemical and radiological weapons and anti-personnel mines
7.Manufacture of firecrackers and other pyrotechnic devices

Foreigners are allowed 25-percent equity in private recruitment, whether for local or overseas employment, and contract for the construction of defense-related structures.

Under the EO, a 30-percent foreign equity on advertising remains. A 40 percent cap on locally-funded public works and private radio communications network sector is now allowed up from the previous 25 percent and 20 percent.

Duterte also allowed 40-percent foreign equity in the following areas:

-Exploration, development, and utilization of natural resources
-Ownership of private lands
-Operation of public utilities, except power generation and supply of electricity to the contestable market and such other like businesses or services not covered by the definition of public utilities
-Educational institutions other than those established by religious groups and mission boards
-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
-Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municipal corporation
-Operation of deep sea commercial fishing vessels
-Ownership of condominium units

Presidential Spokesperson Salvador Panelo confirmed that “the restriction involving contracts for the construction and repair of locally-funded public works was liberalized from 25 percent to 40 percent foreign equity.”

He said the latest Foreign Investment Negative List was “meant to liberalize as many sectors as possible to keep up with domestic and global demands, and designed to be consistent with the policy of easing restrictions on foreign participation in certain industries or activities.”

He said the list “is a product of extensive discussions and we made certain that the same is in accordance with our Constitution.”

 

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