2012-11-02 16:45:19 - Latest presidential decree severely restricts foreigners from investments in Philippines
New law likely to send potential foreign investors to more friendly countries
President Benigno S. Aquino III has signed Executive Order No. 98 to expand the investment areas and economic activities reserved to Philippine nationals under the 9th Regular Foreign Investment Negative list, Executive Secretary Paquito N. Ochoa Jr. announced on Friday.
Ochoa said EO No. 98, signed by the President on October 29, 2012, replaces EO No. 858, which has been in effect since February 2010.
The only law restricting foreign ownership that makes any sense is that to do with . public health and morals" presumably which includes the sex industry in Angeles City, Subic and parts of Manila.
The law, accountancy, architecture and the real estate business are all
barred to foreigners practising in PHL.
Recruitment, media and advertising are also included.
The 9th Regular Foreign Investment Negative List enumerates the industries and business activities that are open to Filipino businessmen, and defines the extent of participation of foreign investors in areas allowed by specific laws and the Constitution.
“There are investments areas or activities which foreign ownership limitations imposed by law were not included in EO 858. Those changes are now reflected in the ‘List A’ of the new presidential directive Ochoa explained in a statement.
Among the amendments, Ochoa said, are the foreign ownership and foreign practice limitations imposed under:
“List A may be amended any time to reflect changes brought about by new laws. List B may be amended not more than once every two years upon the recommendation of the departments concerned and endorsed by the National Economic and Development Authority, or upon NEDA’s own initiative and recommendation, approved by the President and promulgated by a presidential proclamation Ochoa said.
“For now, List B stays while the changes to the negative list covers only List A he added.
Under the Foreign Investments Act of 1991 (RA 7042), foreign investors are allowed to own 100-percent equity in businesses excluded from the negative list.
Full details of lists, click link below: