MALACANAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES EXECUTIVE ORDER NO. 175 PROMULGATING THE TWELFTH REGULAR FOREIGN INVESTMENT NEGATIVE LIST WHEREAS, Republic Act (RA) No. 7042, also known as the ‘Foreign Investments 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 andior reserved to Filipino nationals; and WHEREAS, there is a need to formulate the Twelfth Regular Foreign Investment Negative List, replacing the Eleventh 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 incerta investment areas or activities: NOW, THEREFORE, |, RODRIGO ROA DUTERTE, President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order: Section 1. Twelfth Regular Foreign Investment Negative List. Only the investment areas and/or activities listed in the attached Twelfth Regular Foreign Investment Negative List shall be reserved for Philippine Nationals, subject to the ‘exceptions and conditions indicated therein, Section 2. Amendments. Amendments to List A may be made at any time to reflect changes instituted in specific laws, while amendments to List 8 shall not be ‘made more often than once every two (2) years, pursuant to Section 8 of RA No. 7042, as amended, and its revised Implementing Rules and Regulations. Section 3. Repeal. All orders, rules and regulations, and issuances or parts thereof inconsistent with this Order are hereby repealed, amended or modified accordingly. Section 4. Separability. If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting, ‘THE PRESIDENT OF THE PHILIPPINESSection 5. Effectivity. This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation, DONE, in the City of Manila, this 27cdayof June + in the year of Our Lord, Two Thousand and Twenty-Two. By the President: Komemat, n SALVADOR C. MEDIALDEA Executive Secretary‘TWELFTH REGULAR FOREIGN INVESTMENT NEGATIVE LIST LIST A: FOREIGN OWNERSHIP IS LIMITED BY MANDATE OF THE CONSTITUTION AND SPECIFIC LAWS No Foreign Equity 1. Mass media, except recording (Section 11, Article XVI of the 1987 Constitution; Presidential Memorandum dated 05 May 1994) and internet business (Department Of Justice [DOJ] Opinion No. 40, s. 1998)" 2. Practice of professions (Section 14, Article XII of the Constitution), except in cases specifically allowed by law following the prescribed conditions stated therein (Section 1 of Republic Act [RA] No. 5181,? Section 7{j] of RA No. 8981,° Title Il of Presidential Decree [PD] No. 442).‘ The Annex on Professions attached herewith and forming an integral part of this document, indicates: 4. pfofessions where foreigners are not allowed to practice in the Philippines, except if subject to reciprocity as provided in pertinent laws; and b. corporate practice of professions with foreign equity restrictions under pertinent laws? 3. Retail trade enterprises with paid-up capital of less than PhP25,000,000.00 (Section 2 of RA No. 11595, amending RA No. 8762) 4. Cooperatives (Chapter Ill, Article 26 of RA No. 6938, as amended by Chapter Il, Article 10 of RA No. 9520), except investments of former natural born citizens of the Philippines (Section 4 of RA No. 8179, amending RA No. 7042)’ 5. Organization and operation of private detective, watchmen or security guards agencies (Section 4 of RA No. 5487, as amended by Section 4 of PD No. 11 and PD No. 100, s. 1973) 6. Small-scale mining (Section 3 of FAA No. 7076) 7. Utlization 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 (Section 2, Article XIl of the Constitution) 8. Ownership, operation and management of cockpits (Section 5 of PD No. 449) 8. Manufacture, repair, stockpiling andlor distribution of nuclear weapons (Section 8, Article Il of the Constitution)® * "B04 Opinion No. 4 (s. 1968) uses the ter ‘intsenet Business to er to ntemet access prover hat maraly ‘serve as caries for Wansmiing messages and no creators of massageshnformation. FRA No. Sit procoibes pomanent residence and recprociy 98 quatfesion Yor any examination of ‘istration for he practice of any profession te Puppnos (Section 1 of RA No. 5161). 3 RANo, 8961 provides rules fo oreign professionals whe intond andre authorize by ening laws to practice 2 palesion nthe Phipsnes(Secton 7] ane il of RA Ne, 88"). 4 Tile PD No. 442 govems he employment of non-resident sions inthe county. * DO eter fo the NEDA dated 12 October 2021 stata tat teersediegstered foreign professionals who are ‘lowed, onthe basis of reciprocy, to pracice profession nthe Praipines, ean have-an equa corporation ‘Dubz to pracoethe same pofesion, subject fo he mations proved, ary. the relevant requstoy ‘¢ Board ew and othe evant ava.” * Foreign-ned partnerships, associations and corporations are afowed to engage in tal rode povided that 2) he frlgn rear shal have a mmm paid-up capa of P25 mibon 6) te foreign retairs cour ot ‘tgn does not rohit entry of Flpno rela; ana c) orn etal wlth more than one pelea tora mast Ihave at last 10 mison minum investment por stor (Section of RA No. 11595 amending P& No. 8762). Former eatural bom citzans of te Palipines have the same investment rights o cooperatives as @ Phiigpine ctizan Seobon 9 of RA No, 7042), Domestic investments are sso prohibited (Secton 6, Atl fh Consttuton; Conventions! Treaties to which the Philippines is a sgnatny)10.Manufacture, repair, stockpiling and/or distribution of biological, chemical and radiological weapons and anti-personnel mines (various treaties to which the Philippines i a signatory and conventions supported by the Philippines)? 111. Manufacture of firecrackers and other pyrotechnic devices (Section 5 of RA No. 7183) Up to twenty-five percent (25%) foreign equity 12. Private recruitment, whether for local or overseas employment (Article 27 of PD No. 442) 13.Contracts for the construction of defense-related structures (Section 1 of ‘Commonwealth Act [CA] No. 541) Up to thirty percent (30%) foreign equity 14. Advertising (Section 11, Article XVI of the Constitution) Up to forty percent (40%) foreign equity 18.Procurement of infrastructure projects pursuant to Section 23.4.2.1(b), (c) and (e) of the Implementing Rules and Regulations (IRR) of RA No. 9184 16. Exploration, development and utilization of natural resources (Section 2, Article XII ‘of the Constitution)'? 17.Ownership of private lands (Section 7, Article XIl of the Constitution; Section 22 of CANo. 141; Section 4 of RA No. 9182), except a natural born citizen who has lost his Philippine citizenship and who has the legal capacity to enter into a contract under Philippine laws (Section 10 of RA No. 7042, as amended by Section § of RA No. 8179)"" 18. Operation of public utilities (Section 11, Article XII of the Constitution:"? Section 13, ‘of CA No, 146, as amended by Section 4 of RA No. 11659;"° Sections 2fal. 2[5] and 2{m] of RA No. 7718)'* 19. Educational institutions other than those established by religious groups and mmission boards, for foreign diplomatic personnel and their dependents, and other 5 Domestic investments are alo prohibited (Section 8, Articolo he Conttuton; Conventions Treaties to which the Priippnes i 9 ignatory) "Full foreign paricpaton is alowed though facial or tchnical assistance agreements entered ito withthe President (Socton 2, Arce XI'o! the Consiton), "ny natural born cltzen wo has lt hs Ppp clizenshp and who has the legal capacty to eter into a contact under Philippine laws may be a trator ofa vat and upto a maximum area of ve theusand (5.000) squere mates in te case of urban land o thee (3) hectares the case of ural ond tobe used by Nm fortusiness or oer purposes "2 The partiapaton of orig investors inthe govering body of any publ tity arterpse shal be ited othe proporionsteshara nis canal andal the exscutve and mansoig offers of auch corporation or sssocaton frustbe ctzen a the Patppines (Section 1, Atl Xl of te Constton). "3 Section 13 of CA No. 146, os amended by Secon 4 of RA No, 11659, defines Publ Utlly as public orice that operates, manages oF contol for puble use any of the folowing: (1) dstibuion af electity (2) transmission of electcty: 2) potoloun and perleum products ppoine transmission sytem; (6) seaports: ‘and (6 public uty vehiies. All concessionares, jt ventures and ator simarenites thal whol operate, ‘manage or conv! for publ use the sectors above are pub utes. Nothing this Act shal be doomed & Duble uty untess otherwise subsequently provided bylaw. "xcept power genoraon and the supply of lect to the contetable market (Section 6 and Section 29 of FRANo, 9136, especialy) and such che lke businesees or renews nol covered bythe definition of pubic ties.foreign temporary residents (Section 4, Article XIV of the Constitution),"® or for short-term high-level skills development that do not form part of the formal ‘education system as defined in Section 20 of Batas Pambansa No. 232 20.Culture, production, milling, processing, trading except retailing, of rice and com ‘and aoquiting, by barter, purchase or otherwise, rice and com and the by-products. thereof (Section 5 of PD No. 194), subject to period of divestment (National Food Authority [NFA] Council Resolution No. 193, s. 1998)"® 21.Contracts for the supply of materials, goods and commodities to government- ‘owned or -controlled corporations (GOCC), company, agency or municipal ‘corporation (Section 1 of RA No. §183,"” and Section 4 of RA No. 9184) 22, Operation of deep sea commercial fishing vessels (Section 27 of RA No. 8550, as ‘amended by RA No. 10654) 23. Ownership of condominium units (Section § of RA No. 4726) 24.Private radio communications network (Section 11, Article XIl of the Constitution, National Telecommunications Commission Memorandum Circular No. 10-8-01) | ‘Contol and adminstraton of educational institatons shal be vested in cizens ofthe Philppines (Section 4(2 Dre XIV af tha Consthuton) "Ful foreign parcipaton is alowee provided that within the 30-year pao fom star of operation, the foreign Investor shal divest a miniman of sity percant (60%) of ther ecu 10 Fillino Ciizens (Section 6 of PD NO. 194; NFA Gounst Resoulton No, 193, 1008), * A contract may be amarded to any contractor oder who Is cttzen,earporaton or association ofa foreign ourry te laws orreguions of which gram simiar rights or pvlages fo czens ofthe Philippines (Secon TOrRANo. 5189)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, andior distribution of products andior ingredients requiring Philippine National Police (PNP) clearance: 1. Firearms (handguns to shotguns), parts of firearms and ammunition therefore, instruments or implements used or intended to be used in the manufacture of firearms; ‘Gunpowder, Dynamite; Blasting supplies: Ingredients used in making explosives: i. Chilorates of potassium and sodium; Ji, Nitrates of ammonium, potassium, sodium barium, copper (11), lead (11), calcium and cuprite; ii, Nitric acid; iv. Nitrocellulose; V. Perchlorates of ammonium, potassium and sodium; Vi. Dinitroceliulose; vii. Glycerol vill. Amorphousphosphorus; ix. Hydrogen peroxide; x. Strontium nitrate powder; xi. Toluene; and f. Telescopic sights, sniper scope and other similar devices. sacs 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 (IRR of RA No, 7042, as amended by IRR of RA No. 8179). 2, Manufacture and distribution of dangerous drugs (RA No. 7042, as amended by RANo. 8179) 3. Sauna and steam bathhouses, massage clinics and other like activities regulated by law because of risks posed to public health and morals, except wellness centers (RA No. 7042, as amended by RA No. 8179) 4, All forms of gambling (RA No. 7042, as amended by RA No. 8179) except those covered by investment agreements with PAGCOR (PD No, 1869, as amended by RANo. 9487) 5. Micro and small domestic market enterprises with paid in equity capital of less than the equivalent of US$200,000 (RA No. 7042, as amended by RA No. 11647). 6. Micro and small domestic market enterprises: () that involve advance technology as determined by the Department of Science and Technology (DOST); or (ii) are endorsed as startup or startup enablers by the lead host agencies, namely the Department of Trade and Industry, Department of Information and Communications Technology or DOST, pursuant to RA No. 11337, otherwiseknown as the “Innovative Startup Act;” or (ii) with a majority of their direct ‘employees as Filipinos, but in no case shall the number of Filipino employees be less than fifteen (15), with paid-in equity capital of less than the equivalent of US$100,000 (RA No. 7042, as amended by RA No. 11647)ANNEX ON PROFESSIONS: ‘A. Professions where foreigners are not allowed to practice"* in the Philippines ‘except if subject to reciprocity as provided in the pertinent laws: 1. Accountancy (Section 34 of RA No. 9298) 2. Aeronautical engineering (Section 14 of PD No. 1570) 3. Agricultural and biosystems engineering (Sections 15 and 31 of RA No. 10915, repealing RA No. 8559) Agriculture (Section 27 of Professional Regulation Commission (PRC) Resolution No. 2000-663) Architecture (Sections 13 and 27 of RA No. 9266) Chemical engineering (Section 30 of RA No. 9297) Chemistry (Sections 16, 18 and 34 of RA No. 10657) ivil engineering (Section 25 of RA No. 644, as amended by RA No. 1582) Criminology (Sections 14(a) and 27(b) of RA No. 11131) 10.Customs brokers (Section 25 of RA No. 9280) 11, Dentistry (Section 14 and 31 of RA No. 9484) 12.Electrical engineering (Section 38 of RA No. 7920) 19. Electronics engineering (Sections 13 and 33 of RA No. 9292) 414, Electronics technician (Sections 13 and 33 of RA No. 9292) 15. Environmental planning (Sections 18 and 28 of RA No. 10587) 16.FFisheries profession (Section 28 of RA No. 11398) 17. Food technology (Section 14(a) of RA No. 11052) 18 Forestry (Sections 14 and 27 of RA No. 10690) 19. Geodetic engineering (Section 26 of RA No. 8560) 20.Geology (Sections 17 and 33 of RA No. 10166) 21. Guidance and counseling (Sections 13 and 29 of RA No. 9258) 22. Interior design (Sections 15 and 29 of RA No. 10350) 23. Landscape architecture (Sections 13 and 29 of RA No. 9053) 24. Librarianship (Sections 15 and 28 of RA No. 9246) 25.Marine deck and engineering (Section 28 of RA No. 8544, as amended by RA No, 10635)""| 26. Master plumbing (Section 21 of RA No. 1378) 27. Mechanical engineering (Section 39 of RA No. 8495) 28. Medical technology (Section 27 of RA No, 5527, as amended by RA No. 6138, PD No. 498 and PD No. 1534) 29. Medicine (Section 9 of RA No. 2382, as amended by RA No. 4224 and RA No. 5946) 30. Metallurgical engineering (Sections 17 and 34 of RA No. 10688) 31. Midwifery (Section 22 of RA No. 7392) 32.Mining engineering (Sections 15, 16 and 28 of RA No. 4274) 33. Naval architecture (Sections 13 and 31 of RA No. 10698) 34. Nursing (Sections 13 and 20 of RA No. 9173) 35. Nutrition and dietetics (Sections 15 and 31 of RA No. 10862) 36. Optometry (Section 34 of RPA No. 8050) Section fo) of PRC Resolution No. 2012-658 defines “practice of a prolssion’ as an “activtyhndertaking ‘onda by a rgieterad and loaned professional ra holder ofa Speci Temporary Perm. defined nthe Scope of practice a a professional regs a” On hlarine eck and enginoerofcer practce ls alowed for foreigners subject to special dspensition under ‘Sooton 28 of RA No. 8544, 2x amended by RAN, 10635.37. Pharmacy (Sections 14 and 24 of RA Ho. 10918) 38.Physical therapy (Sections 15 and 21 of RA No. 5680) and occupational therapy (Sections 13(a) and 25 of RA No. 11241) 39. Professional teaching (Sections 15(a) and 24 of RA No. 7836, as amended by RA No, 9293; Section 7()) of RA No. 8981, PRC Resolution No. 2012-668 and RA No. 11448) 40. Psychology (Sections 12, 13 and 24 of RA No. 10029) 41.Radiologic and x-ray technology (Section 17(b) of RA No. 7431)?" 42. Real estate service (real estate consultant, real estate appraiser, real estate assessor, real estate broker and real estate salesperson) (Section 24 of RA No. 9646) 43. Respiratory therapy (Sections 13 and 34 of RAA No. 10024) 44. Sanitary engineering (Section 32 of RA No. 1364) 45, Social work (Section 18 of RA No. 4373, as amended) 46, Speech Language Pathology (Sections 13(a) and 25 of RA No. 11249) 47. Veterinary medicine (Sections 15 and 31 of RA No. 9268) 48, Other professions as may be provided by law or by treaty where the Philippines isa party B. Corporate practice of professions with foreign equity rest Pertinent laws: ions under 1. Architecture (Section 37 of RA No. 9266)” % On professional teaching, practe of qualified foreign achers at elementary ane secondary lav subject 0 ‘mutual reirooty agreement under Secions 4, 15(a) end 24 of RA No. 7898, practice of qualified forign| teachers athigher education levels subject o muvalreprecity and ether conditions as prescribed under RA, No. 8961, PRC Resolution No, 2012-658 (3, 2012) and ahr international agreements ae sipusted under RA, No 1344a, 1 On radiologic and xray tochnology, practi Is allowed for foreigners (imited, however, to lectures of ‘consultation and tenn) subject fo mull recprocty ané other concn provides uncer Section 170) of RANo, 743 % DOL eter to NEDA dated 12 October 2021 defines corporate prectca as suc: "A corporation may engage In the practice of professions, subject othe requramonts thal the corporation he registered with SEC andor the Profesional Requitory Board concomed; at a cman peroentago ofthe Board af Orectors or members (siockoders) of the corporation be rxistorad and licensed protesionals; and tat tno practon of the esoraton be carted out by te duly rested ad icensed professionals Quatieleaistoredicensed foeagn architects cannot investor own equty in 8. domestic architectural fim since ‘Section 37(8) of RA No, S266 ctatos that only Fino srétets may orm and register an stchecutt fm