NEDA welcomes signing of 11th RFINL

The National Economic and Development Authority welcomed yesterday the signing of Executive Order 65, promulgating the 11th Regular Foreign Investment Negative List (RFINL).

The order was signed by President Duterte on Oct. 29, but was announced yesterday. The list of limitations for foreign investment has been touted as the most liberal so far.

“We are very happy to see the 11th RFINL finally approved and signed. This will help raise the country’s competitiveness, and allow us to be closer to parity with other ASEAN member-states by opening up more areas for foreign investment into the country, particularly those that will introduce new technology and stimulate innovation,” said Socioeconomic Planning Secretary Ernesto Pernia in a statement yesterday.

The Philippines is one of the most restrictive countries in ASEAN in terms of foreign direct investments, but Pernia said this is about to change with the new negative list.

The 11th RFINL reflects amendments in existing laws, limitations on foreign participation in investment areas provided for in new laws, and exclusions from limitations on foreign participation in some investment areas that do not need legislative action.

With the issuance of the executive order, five investment areas would now allow up to 100 percent foreign participation.

These are: internet businesses, which has been excluded from mass media; teaching at higher education levels provided the subject being taught is not a professional subject covered by board or bar examinations; training centers that are engaged in short-term high level skills development that do not form part of the formal education system; adjustment companies, lending companies, financing companies and investment houses; and wellness centers.

NEDA said these five areas may be amended by executive power, and do not require legislative action.

The 11th RFINL also allows up to 40 percent foreign participation in contracts for the construction and repair of locally-funded public works, subject to applicable regulatory frameworks; and private radio communications network. The 10th RFINL allowed only up to 25 percent and 20 percent foreign participation, respectively, in these areas.