President Ferdinand Marcos Jr. has signed Executive Order No. 113, amending the 12th Regular Foreign Investment Negative List (RFINL), which defines sectors in the Philippines where foreign investment is restricted, limited, or fully allowed.
The updated framework, implemented through the Department of Economy, Planning, and Development, is part of the administration’s push to attract more international capital while safeguarding industries deemed critical to national security and public interest.
“There is a need to amend the 12th RFINL to reflect changes to Negative Lists A and B, pursuant to existing laws and consistent with the policy to ease restrictions on foreign participation in certain investment areas or activities,” the agency stated.
Prohibited Sectors (Zero Foreign Equity)
The revised list maintains full restrictions on several industries reserved exclusively for Filipino citizens, including:
- Mass media (except recording and internet-based activities)
- Corporate practice of architecture
- Small-scale mining
- Private security agencies
- Cockpit ownership
- Firecracker manufacturing and retail
- Production or stockpiling of nuclear, biological, chemical, and radiological weapons
Cooperatives also remain fully restricted to Filipino ownership.
Limited Foreign Participation
Equity caps remain in place for several sectors:
- 25% in private recruitment agencies and defense-related construction contracts
- 30% in advertising
- 40% in public utilities, educational institutions, and select industries such as natural resource exploration, small-scale retail trade, commercial fishing, rice and corn production, and certain government procurement activities
Restrictions also continue on foreign ownership of private land and condominium units.
Liberalized Sectors and Reciprocity Rule
A key provision in the updated list is the liberalization of the telecommunications sector, allowing up to 100% foreign ownership, provided that the investor’s home country grants reciprocal rights to Filipino investors. Without such reciprocity, foreign equity remains capped at 50%.
The EO reiterates that restrictions remain in place for industries tied to national security, public health, defense, and the protection of micro, small, and medium enterprises.
The new rules take effect immediately upon publication, signaling a broader effort to balance investment liberalization with economic safeguards.