Foreign nationals are banned from investing in any activity related to the national defense under the 12th Regular Foreign Investment Negative List (RFINL).

On Monday, President Rodrigo Duterte signed Executive Order (EO) No.175 promulgating the updated list containing the activities reserved for Filipinos subject to some exceptions and conditions.

Duterte noted EO 175 aims to make the list consistent with existing laws and new policies “to ease restrictions on foreign participation in certain investment activities.”

Among the major changes in the new list was removal of the manufacture, repair, storage and/or distribution of products requiring Department of National Defense clearance such as guns and ammunition for warfare among others.

Under the 11th RFINL, foreigners were allowed to have 40 percent equity for such activities.

This was prohibited under Republic Act No.11647 or the Foreign Investment Act.

Also updated in the new list were the list of professions which foreigners are not allowed to practice in the country except if subject to reciprocity as provided by pertinent laws and for “corporate practice” with foreign equity restrictions.

Among the latest additions to the list are criminology, food technology, marine deck and engineering, professional teaching; radiologic and x-ray technology; and speech pathology.

The 12th RFINL will take effect 15 days after its publication in a newspaper of general circulation. DMS