New DTI chief wants to trim down Negative List

by Bernie Magkilat | July 1, 2016 (updated)

New Trade and Industry Secretary Ramon Lopez has called to further  trim down the Foreign Investment Negative List to open more industries that will benefit, create jobs and additional income to more people.

Lopez told reporters during the turnover ceremony that he would like to initiate a review of the  Negative List with the end in view of further reducing the list and open more domestic industries to foreign investors. This is also in line with President Duterte’s objective to open the economy to more investors.

“There is a Negative List, we would like to trim it down,” he said.

Lopez has no idea yet which industries that are currently listed in the Foreign Investment Negative List that should be opened for foreign investors’ participation, but said this should be industries that can benefit more people, create jobs and income.

The NIFL has been regularly reviewed to update it and make it more liberalized. But foreign investors still see it as very restrictive.

The 10th NIFL, the latest version issued in May, 2015, has listed 11 economic activities where foreign equity is banned.

It also lists industries where foreign investors are limited to varying degrees in their  investments from  20 percent up to a 40 percent minority equity stake.

List A of the NIFL is comprised of economic actitivities where foreign equity investments are banned or restricted as mandated by specific laws or mandated by the Constitution.

List B is comprised of activities where foreign ownership is limited for reasons of security, defense, risk to health and morals  and protection of small and medium scale enterprises.

Sources: www.mb.com.ph