QuestionsQuestions (EXECUTIVE ORDER NO. 98)
It promulgates the Ninth Regular Foreign Investment Negative List, identifying investment areas/activities that are reserved to Filipino nationals and the allowable extent of foreign equity participation in those areas.
Only the investment areas/activities listed in the Annex are reserved to Philippine nationals and comprise the Ninth Regular Foreign Investment Negative List.
Even for areas listed as reserved/regulated, foreign investors may be allowed to participate only up to the specific percentage thresholds shown in the Ninth Regular Foreign Investment Negative List.
To reflect changes to List A based on existing laws and recommendations of concerned agencies, resulting in an updated negative list.
Republic Act No. 7042 (Foreign Investments Act of 1991), as amended by Republic Act No. 8179.
The EO distinguishes amendment frequency and process: amendments to List A may be made any time, while amendments to List B are limited to not more often than once every two years.
No more often than once every two years, consistent with Section 8 of RA 7042 as amended and its revised implementing rules and regulations.
Section 2 provides that List A may be updated to reflect changes in specific laws without waiting for a fixed period, while List B is subject to a more stable amendment cadence under RA 7042.
All issuances, orders, rules, regulations, or parts thereof inconsistent with EO No. 98 are repealed, amended, or modified accordingly.
The invalid portion is severed; the remaining provisions not affected remain valid and subsisting.
Fifteen (15) days after its publication in a newspaper of general circulation.
It states that List A should be updated to reflect changes pursuant to existing laws, showing EO No. 98 operationalizes RA 7042’s regulatory framework.
President Benigno S. Aquino III signed EO No. 98, and Paquito N. Ochoa, Jr., as Executive Secretary, countersigned it.
The Annex contains the actual list of investment areas/activities and the foreign equity limits; Section 1 makes the Annex the controlling enumeration of the negative list.
They must verify whether the activity is listed in the Annex and then comply with the foreign equity percentage limit indicated for that specific area/activity.