President Bongbong Marcos has updated the country’s investment rules through Executive Order 113, setting clear limits on where foreign investors can enter and which industries remain restricted.
The order establishes the 13th Regular Foreign Investment Negative List, the government’s official guide on sectors where foreign ownership is banned, capped, or allowed under specific conditions. It aligns current rules with recent legal changes affecting key industries.
Several sectors remain reserved for Filipinos. These include mass media, including internet-based platforms, cooperatives, private security agencies, small-scale mining, and the utilization of marine resources in archipelagic waters, the territorial sea, and the exclusive economic zone. The corporate practice of the profession in architecture also stays restricted.
The updated list also defines where foreign participation is allowed but limited. Foreign equity of up to 25 percent is permitted in private recruitment and in contracts for the construction of defense-related structures. Advertising allows up to 30 percent foreign ownership. A 40 percent cap remains for land ownership, retail enterprises with paid-up capital below P25 million, educational institutions other than those established by religious groups and mission boards, and the operation of public utilities, subject to existing laws.
The most significant change applies to telecommunications. Foreign investors may own and manage telecom companies fully if their home country grants Filipinos the same rights. Without reciprocity, foreign ownership is capped at 50 percent. This follows earlier reforms that reclassified telecommunications as a public service.
Economist JC Punongbayan described the update as “useful housekeeping,” noting that it reflects earlier liberalization measures. He added that stronger investment growth will still depend on addressing structural issues such as weak rule of law, high costs, and inadequate infrastructure.
