Marcos admin releases first foreign ownership limits list in the Philippines

Malacañang on Thursday released an updated list of investment areas and activities that are not allowed or limited to foreign investors  —the first under the Marcos administration.

Executive Secretary Ralph Recto, by authority of President Ferdinand Marcos Jr., issued Executive Order No. 113 which promulgates the 13th Regular Foreign Investment Negative List (RFINL).

The order will take effect 15 days after its publication in the Official Gazette or in any newspaper of general circulation.

The 13th RFINL consists of two categories —foreign ownership limited by mandate of the Constitution and specific laws and foreign ownership regulated for reasons of security, defense, risk to health and morals, and protection of small- and medium-scale enterprises.

Below is the list of sectors and activities which are absolutely prohibited to foreigners as mandated by the 1987 Constitution:

• Mass media, except recording; and internet business
• Corporate practice of profession in architecture
• Cooperatives, except investments of former natural-born citizens of the Philippines 
• Private security agency
• Small-scale mining
• Utilization of marine resources in archipelagic waters, territorial sea,, and exclusive economic zone, as well as small-scale utilization of natural resources in rivers, lakes, bays, and lagoons
• Ownership, operation, and management of cockpits
• Manufacturer, repair, stockpiling, and/or distribution of nuclear weapons
• Manufacture, repair, stockpiling, and/or distribution of biological, chemical, and radiological weapons and anti-personnel mines
• Manufacture and retail of firecrackers and other pyrotechnic devices 

Allowed for 25% of foreign equity

• Private recruitment, whether for local or overseas employment
• Contracts for the construction of defense-related structures 

Up to 30% foreign equity

• Advertising

Up to 40% foreign equity

• Retail trade enterprise with paid-up capital of less P25,000,000
• Exploration, development, and utilization of natural resources including the appropriation of water direct from natural sources, except: agreements entered into with the President, involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils; and renewable energy, such as solar, wind, hydro and ocean or tidal energy, where full foreign participation is allowed
• Ownership of private islands, except a natural-born citizen who has lost his/her Philippine citizenship and who has the legal capacity to enter into a contract under Philippine laws
• Operation of public utilities
• Educational institutions other than those established by religious groups and mission boards, for foreign diplomatic personnel and their dependents, and other foreign temporary residents or for short-term high level skills development that do not form part of the formal education system
• Culture, production, milling, processing, and trading, except retailing of rice and corn, and acquiring by barter, purchase, or otherwise, rice and corn and the by-products thereof
• Government procurement of goods
• Government procurement of infrastructure projects; in cases where the structures to be built require the application of techniques or technologies which are not adequately possessed by Filipino entities, foreign ownership or interest is allowed up to 75%
• Government procurement of consulting services
• Operation of commercial fishing vessels
• Ownership of condominium units

Up to 100% foreign equity

• Operation and management of telecommunications in case the country of the foreign national accords reciprocity to Philippine nationals, and up to 50% foreign equity in the absence of such reciprocity 

Meanwhile, below are the lists of investment areas and activities limited to foreigners for reasons of security, defense, risk to health and morals, and protection of small- and medium-scale enterprises.

Up to 40% foreign equity 

• Manufacture, repair, storage, and/or distribution of products and/or ingredients requiring Philippine National Police clearance
• Development, production, manufacturing, assembly, servicing or operation of “materiel” —military technology, weapons systems, arms, ammunition, etc.— by an in-country enterprise
• Sauna and steam bathhouses, massage clinics, and other activities regulated by law because of risks posed to public health and morals
• All forms of gambling except those covered by the investment agreements with the Philippine Amusement and Gaming Corporation 
• Micro and small domestic enterprises with paid-in equity capital of less the equivalent of $200,000
• Micro and small domestic enterprises that involve advanced technology as determined by the Department of Science and Technology (DOST); endorsed as startup or startup enablers by the lead host agencies, namely the Department of Trade and Industry, Department of Information and Communications Technology, and DOST; or with a majority of their direct employees are Filipinos, but in no case shall the number of Filipino employees be less than 15, with paid-in capital of less than the equivalent of $100,000

The President is authorized to amend the RFINL upon recommendation of the Department of Economy, Planning and Development.

The EO 113 was issued on April 13, 2026. — RSJ, GMA News