Question & AnswerQ&A (EXECUTIVE ORDER NO. 286)
The Fourth Regular Foreign Investment Negative List is a list of investment areas and activities in the Philippines that are either reserved for Filipino nationals or have limited foreign equity participation, as indicated by the law. It contains Lists A and B which specify these limitations.
Foreign equity is not allowed in retail trade enterprises with a paid-up capital of less than US$2,500,000; such enterprises are reserved for Filipino nationals only.
All professions listed under the law such as engineering (various fields), medicine and allied professions, accountancy, architecture, law, teaching, and several others are reserved exclusively for Filipino nationals.
No, ownership of private lands is limited by the Philippine Constitution and specific laws, restricting foreign ownership.
Foreign equity is limited to up to 40% in the exploration, development, and utilization of natural resources as provided by the Constitution.
Yes, full foreign participation is allowed provided that within 30 years from the start of operation, the foreign investor shall divest a minimum of 60% of their equity to Filipino citizens.
Foreign equity in private recruitment agencies is limited to up to 25%.
Foreign ownership in financing companies and investment houses is limited to up to 60%, and foreign nationals may only own stock if their country grants reciprocal rights to Filipinos.
Manufacture, repair, storage, and distribution of military ordinance, tactical aircraft, combat vessels, weapons repair, military communications equipment, and other related defense items require Department of National Defense clearance for foreign equity participation and are limited to 40% foreign equity.
List A may be amended at any time to reflect changes instituted by specific laws, while amendments to List B shall not be made more often than once every two years.