EXECUTIVE ORDER NO. 182 October 24, 1994
FIRST REGULAR FOREIGN INVESTMENT NEGATIVE LIST
WHEREAS, there is a need to attract, promote and increase productive investments in the country to ensure sustained economic growth and realize its goal of becoming a newly industrializing economy.
WHEREAS, the importance of foreign investments in supplementing the financial and technological requirements of the country is recognized.
WHEREAS, foreign equity participation of as much as one hundred percent (100%) is allowed as a general rule except in areas reserved to Philippine nationals as mandated in the Constitution and other relevant laws of the country.
WHEREAS, the Government recognizes the rights of Philippine nationals, and the need to protect certain areas as provided for in the Constitution and other laws, and for reasons of security, defense, risk to health and morals, and protection of local small and medium-scale enterprises.
WHEREAS, no petitions for inclusion in List C were received during the filing period set by the NEDA.
NOW, THEREFORE, I, FIDEL V. RAMOS, President...
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Amended by
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Executive Orders
First Regular Foreign Investment Negative List
Executive Order No. 182
EXECUTIVE ORDER NO. 182
Summary:
- Aims to attract, promote and increase productive foreign investments in the country to ensure sustained economic growth and industrialization.
- Recognizes the importance of foreign investments in supplementing financial and technological requirements.
- Allows foreign equity participation of up to 100% as a general rule, except in areas reserved for Philippine nationals as mandated by the Constitution and other relevant laws.
- Establishes the Foreign Investment Negative List (Annex A) which reserves certain investment areas to Philippine nationals, with the extent of foreign equity participation limited to specified percentages.
List A: Foreign Ownership Limited by Mandate of the Constitution and Specific Laws
- No Foreign Equity:
1. Mass media (Sec. 1, Article XVI, Section 11 of the Constitution)
2. Services involving the practice of licensed professions (Sec. 1, Article XIV, Section 14 of the Constitution)
3. Retail trade (Sec. 1, Republic Act No. 1180)
4. Cooperatives (Sec. 1, Republic Act No. 6938)
5. Private security agencies (Sec. 1, Republic Act No. 5487)
6. Small-scale mining (Sec. 1, Republic Act No. 7076)
7. Utilization of marine resources, except deep sea fishing (Sec. 1, Article XII, Section 2 of the Constitution)
8. Engaging in the rice and corn industry, except as authorized by the National Food Authority (NFA) (Sec. 1, Republic Act No. 3018; Presidential Decree No. 194)
- Up to 25% Foreign Equity:
9. Private recruitment, whether for local or overseas employment (Sec. 1, Article 27 of the Labor Code)
10. Contracts for the construction and repair of locally-funded public works (Sec. 1, Commonwealth Act 541 as amended by PD 1594; Letter of Instruction No. 630)
- Up to 30% Foreign Equity:
11. Advertising (Sec. 1, Article XVI, Section 11 of the Constitution)
- Up to 40% Foreign Equity:
12. Exploration, development and utilization of natural resources (Sec. 1, Article XII, Section 2 of the Constitution)
13. Ownership of private lands (Sec. 1, Article XII, Section 7 of the Constitution)
14. Operation and management of public utilities (Sec. 1, Article XII, Section 11 of the Constitution; Commonwealth Act No. 146)
15. Ownership/establishment of educational institutions requiring authorization of the Department of Education, Culture and Sports (DECS) (Sec. 1, Article XIV, Section 4 of the Constitution)
16. Financing companies regulated by the Securities and Exchange Commission (SEC) (Sec. 1, Republic Act No. 5980)
17. Construction (Sec. 1, Republic Act No. 5183, Republic Act No. 4566 as amended by Republic Act No. 6957, Commonwealth Act No. 541)
List B: Foreign Ownership Limited for Reasons of Security, Defense, Risk to Health and Morals, and Protection of Local Small and Medium-Scale Enterprises
- Up to 40% Foreign Equity:
1. Manufacture, repair, storage, and/or distribution of products and ingredients used in the manufacture thereof requiring Philippine National Police (PNP) clearance, such as firearms, ammunition, explosives, and related materials (Sec. 1, Republic Act No. 7042)
2. Manufacture, repair, storage and/or distribution of products requiring Department of National Defense (DND) clearance, such as weapons, ordnance, military equipment, and related materials (Sec. 1, Republic Act No. 7042)
3. Manufacture and distribution of dangerous drugs (Sec. 1, Republic Act No. 7042)
4. Sauna and steam bathhouses, massage clinics and other like activities regulated by law because of risks they may impose to public health and morals (Sec. 1, Republic Act No. 7042)
5. Other forms of gambling, e.g., race track operation; racehorse ownership/importation (Sec. 1, Republic Act No. 7042)
6. Domestic market enterprises with paid-in equity capital of less than the equivalent of US$500,000 unless they involve advance technology (Sec. 1, Republic Act No. 7042)
7. Export enterprises which utilize raw materials from depleting natural resources, and with paid-in equity capital of less than the equivalent of US$500,000 (Sec. 1, Article XII, Section 2 of Constitution; Republic Act No. 7042)
List C: Foreign Ownership Limited by Capacity of Existing Enterprises
- No investment area/activity is listed since no petition for inclusion was submitted to NEDA as of the filing period deadline of August 31, 1993 pursuant to the provisions of Section 9 of RA 7042.
Other Provisions:
- Any amendment to the Foreign Investment Negative List shall only be made once every two years, pursuant to Section 8 of the Foreign Investments Act (FIA) and Rule XI of the Implementing Rules and Regulations of the FIA (Sec. 2).
- All orders, issuances, rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly (Sec. 3).
- This Executive Order shall take effect immediately following the end of the transitory period or on October 24, 1994 (Sec. 4).
Summary:
- Aims to attract, promote and increase productive foreign investments in the country to ensure sustained economic growth and industrialization.
- Recognizes the importance of foreign investments in supplementing financial and technological requirements.
- Allows foreign equity participation of up to 100% as a general rule, except in areas reserved for Philippine nationals as mandated by the Constitution and other relevant laws.
- Establishes the Foreign Investment Negative List (Annex A) which reserves certain investment areas to Philippine nationals, with the extent of foreign equity participation limited to specified percentages.
List A: Foreign Ownership Limited by Mandate of the Constitution and Specific Laws
- No Foreign Equity:
1. Mass media (Sec. 1, Article XVI, Section 11 of the Constitution)
2. Services involving the practice of licensed professions (Sec. 1, Article XIV, Section 14 of the Constitution)
3. Retail trade (Sec. 1, Republic Act No. 1180)
4. Cooperatives (Sec. 1, Republic Act No. 6938)
5. Private security agencies (Sec. 1, Republic Act No. 5487)
6. Small-scale mining (Sec. 1, Republic Act No. 7076)
7. Utilization of marine resources, except deep sea fishing (Sec. 1, Article XII, Section 2 of the Constitution)
8. Engaging in the rice and corn industry, except as authorized by the National Food Authority (NFA) (Sec. 1, Republic Act No. 3018; Presidential Decree No. 194)
- Up to 25% Foreign Equity:
9. Private recruitment, whether for local or overseas employment (Sec. 1, Article 27 of the Labor Code)
10. Contracts for the construction and repair of locally-funded public works (Sec. 1, Commonwealth Act 541 as amended by PD 1594; Letter of Instruction No. 630)
- Up to 30% Foreign Equity:
11. Advertising (Sec. 1, Article XVI, Section 11 of the Constitution)
- Up to 40% Foreign Equity:
12. Exploration, development and utilization of natural resources (Sec. 1, Article XII, Section 2 of the Constitution)
13. Ownership of private lands (Sec. 1, Article XII, Section 7 of the Constitution)
14. Operation and management of public utilities (Sec. 1, Article XII, Section 11 of the Constitution; Commonwealth Act No. 146)
15. Ownership/establishment of educational institutions requiring authorization of the Department of Education, Culture and Sports (DECS) (Sec. 1, Article XIV, Section 4 of the Constitution)
16. Financing companies regulated by the Securities and Exchange Commission (SEC) (Sec. 1, Republic Act No. 5980)
17. Construction (Sec. 1, Republic Act No. 5183, Republic Act No. 4566 as amended by Republic Act No. 6957, Commonwealth Act No. 541)
List B: Foreign Ownership Limited for Reasons of Security, Defense, Risk to Health and Morals, and Protection of Local Small and Medium-Scale Enterprises
- Up to 40% Foreign Equity:
1. Manufacture, repair, storage, and/or distribution of products and ingredients used in the manufacture thereof requiring Philippine National Police (PNP) clearance, such as firearms, ammunition, explosives, and related materials (Sec. 1, Republic Act No. 7042)
2. Manufacture, repair, storage and/or distribution of products requiring Department of National Defense (DND) clearance, such as weapons, ordnance, military equipment, and related materials (Sec. 1, Republic Act No. 7042)
3. Manufacture and distribution of dangerous drugs (Sec. 1, Republic Act No. 7042)
4. Sauna and steam bathhouses, massage clinics and other like activities regulated by law because of risks they may impose to public health and morals (Sec. 1, Republic Act No. 7042)
5. Other forms of gambling, e.g., race track operation; racehorse ownership/importation (Sec. 1, Republic Act No. 7042)
6. Domestic market enterprises with paid-in equity capital of less than the equivalent of US$500,000 unless they involve advance technology (Sec. 1, Republic Act No. 7042)
7. Export enterprises which utilize raw materials from depleting natural resources, and with paid-in equity capital of less than the equivalent of US$500,000 (Sec. 1, Article XII, Section 2 of Constitution; Republic Act No. 7042)
List C: Foreign Ownership Limited by Capacity of Existing Enterprises
- No investment area/activity is listed since no petition for inclusion was submitted to NEDA as of the filing period deadline of August 31, 1993 pursuant to the provisions of Section 9 of RA 7042.
Other Provisions:
- Any amendment to the Foreign Investment Negative List shall only be made once every two years, pursuant to Section 8 of the Foreign Investments Act (FIA) and Rule XI of the Implementing Rules and Regulations of the FIA (Sec. 2).
- All orders, issuances, rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby revoked or modified accordingly (Sec. 3).
- This Executive Order shall take effect immediately following the end of the transitory period or on October 24, 1994 (Sec. 4).