Question & AnswerQ&A (Republic Act No. 11647)
The primary policy of the State is to attract, promote, and welcome productive foreign investments in activities that contribute significantly to sustainable, inclusive, resilient, and innovative economic growth, employment creation, technological advancement, and countrywide development, consistent with the Constitution and protection of national security.
Foreign investment means an equity investment made by a non-Philippine national in the form of foreign exchange and/or other assets actually transferred to the Philippines and duly registered with the Bangko Sentral ng Pilipinas.
The IIPCC is the body responsible for integrating all promotion and facilitation efforts to encourage foreign investments in the country, headed by the Department of Trade and Industry (DTI) acting as the lead agency.
The IIPCC establishes medium and long-term Foreign Investment Promotion and Marketing Plans, designs marketing strategies, supports foreign direct and trade missions, encourages research and development, monitors performance targets, submits annual reports, maintains an online database for business matching, and supports local government foreign investment promotions.
Yes, non-Philippine nationals may do business or invest in domestic enterprises up to one hundred percent (100%) ownership unless otherwise prohibited or limited by existing laws or this Act.
Foreign investors are allowed one hundred percent (100%) ownership in export enterprises, subject to registration with the Board of Investments (BOI) and compliance with export requirements to maintain incentives and benefits.
The Foreign Investment Negative List specifies areas of investment reserved for Philippine nationals, including defense-related activities requiring clearance from the Department of National Defense, micro and small domestic market enterprises with less than US$200,000 capital (with exceptions), and other areas as defined by law.
Upon the President's order, the IIPCC in coordination with the National Security Council and NEDA shall review foreign investments involving military-related industries, cyber infrastructure, pipeline transportation, or investments by foreign government-controlled entities in critical geographic areas and recommend suspension, prohibition, or limitation.
Such public officials shall face penalties under Republic Act No. 3019 plus an additional fine between Two million pesos (P2,000,000.00) and Five million pesos (P5,000,000.00).
No, the Act does not apply to banking and financial institutions regulated by the Bangko Sentral ng Pilipinas or to the practice of professions covered by specific laws or reciprocal agreements overseen by Professional Regulatory Boards.