Here’s a detailed breakdown of the Foreign Investment Negative List (FINL) in the Philippines, specifically List A and List B, based on the 12th Regular FINL issued under Executive Order No. 175 in June 2022:

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Foreign Investment Negative List (FINL)

The FINL outlines sectors where foreign equity participation is restricted or prohibited. It is divided into:

List A: Restrictions Based on the Constitution and Specific Laws

These are non-negotiable limits grounded in the Philippine Constitution or statutory law.

• No Foreign Equity Allowed:

  • Mass media (except recording and internet businesses)
  • Practice of professions (unless allowed by law and subject to reciprocity)
  • Retail trade enterprises with paid-up capital below US$446,000
  • Cooperatives
  • Private security agencies
  • Small-scale mining
  • Utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic zone
  • Manufacture, repair, storage, and/or distribution of nuclear, biological, chemical weapons and related systems

• Up to 40% Foreign Equity Allowed:

  • Exploration, development, and utilization of natural resources
  • Ownership of private lands
  • Operation of public utilities
  • Educational institutions (except those established by religious groups or mission boards)
  • Advertising

List B: Restrictions Based on Security, Health, Morals, and SME Protection

These are policy-based restrictions that can be amended by the President.

• Activities related to defense and law enforcement
• Enterprises with paid-in equity capital below US$500,000
• Activities that may pose risks to public health and morals
• Manufacture and distribution of products requiring clearance from the Department of National Defense (recently removed from List B)