Question & AnswerQ&A (EXECUTIVE ORDER NO. 175)
The purpose is to list investment areas and activities reserved for Philippine nationals and specify foreign ownership limitations to reflect changes in laws and ease restrictions on foreign participation in certain investment areas or activities.
Republic Act No. 7042, also known as the Foreign Investments Act of 1991, as amended.
List A includes investment areas where foreign ownership is limited by the Philippine Constitution and specific laws, with categories of no foreign equity and up to certain percentages of foreign equity (e.g., 25%, 30%, 40%).
No, mass media is reserved for Filipino nationals with no foreign equity allowed, except for recording and internet business as specified by law and DOJ Opinion.
Retail trade enterprises with paid-up capital of less than PhP25,000,000.00 are reserved for Filipino nationals, implying no or limited foreign equity participation.
Generally no, under the Constitution (Section 14, Article XII) and specific laws, except in cases specifically allowed by law and subject to conditions such as reciprocity as detailed in the Annex on Professions.
Professions include Accountancy, Architecture, Medicine, Nursing, Dentistry, Civil Engineering, Law, and various others listed in the Annex on Professions, unless subject to reciprocity.
Ownership of private lands is generally reserved for natural born Filipino citizens, except those who lost their Philippine citizenship may acquire land up to certain limits: 5,000 square meters for urban land or 3 hectares for rural land.
Foreign equity participation is limited to the foreign investors' proportionate share in the capital, but all executive and managing officers must be Filipino citizens. This generally restricts foreign ownership significantly.
Foreign ownership is limited up to 40%, and manufacture or repair may be authorized only with clearance from the Philippine National Police, subject to conditions such as export requirements.
Amendments to List A may be made anytime to reflect legal changes, while amendments to List B shall not be made more than once every two years.
Other provisions not affected shall continue to be valid and subsisting due to the separability clause.