9th Regular Foreign Investment Negative List (FINL) now in place

Executive Order No. 98 promulgating the 9th FINL was signed last October 29, 2012 by Executive Secretary Ochoa. The FINL provides for investment areas/activities which are only reserved for Filipinos or may be opened to foreign investments. The 9th FINL will take effect 15 days after publication. The following are the changes in the 9th FINL vis-à-vis the 8th FINL:
List A- Foreign Ownership is limited by mandate of the constitution and specific laws

No Foreign Equity

The 9th FINL added the following professions/calling as reserved purely to Filipinos:

• Real estate service (RA 9646);
• Respiratory therapy (RA 10024);
• Psychology (RA 10029).

Up to 20% Foreign Equity

The 9th FINL retained the private radio communications network as the only activity allowed with maximum of 20% foreign equity.

Up 25% Foreign Equity
No changes/additions were made from the 8th FINL.

Up to 30% Foreign Equity

Advertising was retained as the only activity allowed with up to 30% foreign equity.

Up to 40% Foreign Ownership

No changes/additions were made from the 8th FINL.

Up to 49% Foreign Ownership

The 9th FINL allowed up to 49% foreign equity on lending companies. Note that no foreign national may be allowed to own stock in lending companies, financing companies or investment houses unless the country of which he is a national accords the same rights to Filipinos.

Up to 60% Foreign Equity

No changes/additions were made from the 8th FINL.

List B- Foreign Ownership is Limited for Reasons of Security, Defense, Risk to Health and Morals and Protection of Small- and Medium- Scale Enterprises

Up to 40% Foreign Equity

The 9th FINL included in the exemption from 40% limit on foreign equity all forms of gambling covered by the PAGCOR charter (RA 9487). The provision on all forms of gambling in relation to the 40% limit on foreign equity now reads:

“5. All forms of gambling, except those covered by investment agreements with PAGCOR pursuant to RA 9487, or the PAGCOR Charter (RA 7042 as amended by RA 8179).”

 

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