MANILA — President Ferdinand “Bongbong” Marcos Jr. has reaffirmed longstanding constitutional and policy restrictions on foreign ownership in key Philippine industries, even as his administration pushes forward with broader economic liberalization under the newly issued Foreign Investment Negative List (FINL).
Marcos signed Executive Order No. 113, adopting the 13th Regular FINL, which outlines sectors where foreign participation remains restricted or prohibited under the Foreign Investments Act of 1991. The order, released Thursday, underscores a calibrated approach that balances investor openness with the protection of national interests.
The FINL is divided into two categories: List A, which covers restrictions mandated by the Constitution and existing laws, and List B, which includes limitations based on national security, public health, morals, and the protection of small and local businesses.
Despite recent reforms, several industries remain fully reserved for Filipinos, with zero foreign ownership allowed. These include mass media, cooperatives, private security agencies, and small-scale mining.
Foreign ownership is capped at 25 percent in private recruitment and the construction of defense-related facilities, while the advertising industry remains limited to 30 percent foreign equity.
A broader group of industries continues to allow up to 40 percent foreign ownership. These include public utilities, natural resource exploration and utilization, educational institutions, land ownership, commercial fishing, and certain government procurement activities, subject to existing laws.
The updated list also reflects selective liberalization measures, allowing up to 100 percent foreign ownership in some sectors such as telecommunications, provided there is reciprocity with the investor’s home country. Without reciprocity, foreign ownership is limited to 50 percent, in line with amendments to the Public Service Act.
The FINL further incorporates reforms that expand foreign participation in certain public services and renewable energy projects, signaling the administration’s push to attract more foreign capital into priority sectors.
However, restrictions remain firmly in place for sensitive industries such as firearms and explosives, gambling, and micro and small domestic enterprises, which the government seeks to shield from foreign competition and safeguard for national security and local economic stability.
Executive Order No. 113 will take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation./PN
