QuestionsQuestions (EXECUTIVE ORDER NO. 389)
EO 389 promulgates the Sixth Regular Foreign Investment Negative List (Lists A and B), identifying investment areas/activities reserved to Philippine nationals and those that may be opened to foreign investors subject to specified equity limits.
Republic Act No. 7042 (Foreign Investment Act of 1991), as amended by Republic Act No. 8179, provides for the formulation of the Regular Foreign Investment Negative List.
They are the two parts of the Regular Foreign Investment Negative List referenced in RA 7042—each covering investment areas/activities under different rules for reservation and/or foreign equity participation.
Only the investment areas or activities listed in Annex A of EO 389 are reserved to Philippine nationals, and the allowed foreign equity participation (where applicable) is limited to the percentages indicated in the List.
Annex A contains the specific investment areas/activities that are reserved to Philippine nationals under EO 389 and the corresponding foreign equity limits for areas not fully reserved.
Foreign equity participation in those areas is limited to the percentages indicated in the Sixth Regular Foreign Investment Negative List.
Amendments to List A may be made at any time to reflect changes instituted in specific laws.
Amendments to List B shall not be made more often than once every two years, pursuant to Section 8 of RA 7042 as amended and its revised IRR.
The frequency limit is based on Section 8 of RA 7042 (as amended) and its revised Implementing Rules and Regulations.
EO 389 permits amendments to List A at any time to reflect changes instituted in specific laws.
All orders, issuances, rules, and regulations or parts thereof inconsistent with EO 389 are revoked or modified accordingly.
It takes effect 15 days after publication in a newspaper of general circulation.
A negative list identifies activities reserved to Filipinos and those where foreign participation is limited; investments outside the list are generally open to foreign investors, subject to other laws and regulations.
EO 389 replaces the expired previous Regular Foreign Investment Negative List by establishing the Sixth Regular Foreign Investment Negative List as the operative rule set.