AmCham, ECCP urge further foreign ownership liberalization

THE latest liberalization of foreign investment rules must be sustained to ensure that the Philippines attracts high-quality investment, the American Chamber of Commerce of the Philippines (AmCham) said.

“We underscore the need for sustained reforms to further ease foreign ownership restrictions, enhance policy clarity, and boost investor confidence,” American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe said via Viber.

He said the Palace order lifting restrictions is a “positive step” in improving the investment climate.

“Executive Order (EO) No. 113’s implementation signals progress, but continued momentum will be crucial to attract high-quality investments, generate jobs, and strengthen the Philippines’ global competitiveness,” Mr. Hinchliffe noted.

Last week, President Ferdinand R. Marcos, Jr. issued EO 113, which promulgates the 13^th Regular Foreign Investment Negative List, which consists of the industries not open to foreign investment, or where such investment is restricted.

The order eased foreign ownership rules for retail trade; infrastructure; government procurement of goods and consulting services; and the development of military materials and equipment.

The EO allows overseas retail investors to own as much as 40% of enterprises with paid-up capital of less than P25 million.

European Chamber of Commerce of the Philippines (ECCP) said in an e-mail that EO 113 complements the Philippines’ proposed free trade agreement (FTA) with the European Union (EU).

“The chamber views this recalibration of equity restrictions as a constructive step toward fostering a more predictable, transparent, and competitive business environment in the Philippines,” it said.

The Philippines and EU are on track to finish FTA negotiations this year, Trade Secretary Ma. Cristina A. Roque said in March. Once completed, the EU FTA could unlock $12 billion in additional exports for the Philippines.

British Chamber of Commerce Philippines Executive Director Chris Nelson said the negative list needs to be updated as opportunities arise.

“I think the Philippines needs to keep looking at that list, and see whatever opportunities there are,” Mr. Nelson said via telephone.

Net inflows of foreign direct investment (FDI) slumped to a four‑month low of $443 million in January, a 39.2% drop from a year earlier.

In 2025, FDI net inflows slumped 17.1% to $7.791 billion, the weakest FDI reading since 2020. — Beatriz Marie D. Cruz