Question & AnswerQ&A (OP EXECUTIVE ORDER NO. 858)
The main purpose of Executive Order No. 858 is to promulgate the Eighth Regular Foreign Investment Negative List, which details the investment areas reserved to Philippine nationals and the extent of foreign equity participation in those areas.
Republic Act No. 7042, also known as the Foreign Investment Act of 1991, as amended by RA 8179, provides the basis for the formulation of the Regular Foreign Investment Negative List.
The Annex specifies the investment areas and/or activities reserved exclusively to Philippine nationals and the permitted percentages of foreign equity participation in these areas.
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 Implementing Rules and Regulations.
All orders, issuances, rules, regulations, or parts thereof which are inconsistent with Executive Order No. 858 are revoked or modified accordingly.
The Executive Order shall take effect 15 days after its publication in a newspaper of general circulation.
The Foreign Investment Negative List identifies the sectors and activities in which foreign investments are restricted or limited to safeguard national interests and promote Filipino ownership.
List A pertains to investment areas and activities whose foreign equity limits are prescribed by specific laws and may be amended at any time; List B comprises sectors where foreign investment is limited based on constitutional or policy grounds and can only be amended every two years.