4. Foreign Government or State-Owned Enterprise Investments

Foreign Government and State-Owned Enterprise Investments

An entity controlled by or acting on behalf of a foreign government or foreign state-owned enterprises is prohibited from owning capital in any public service classified as a public utility or critical infrastructure¹. This prohibition applies only to investments made after the effectivity of Republic Act No. 11659¹. Moreover, foreign state-owned enterprises that owned capital prior to the effectivity of the law are prohibited from investing in additional capital upon its effectivity¹.

Notwithstanding these restrictions, the sovereign wealth funds and independent pension funds of each state may collectively own up to thirty percent (30%) of the capital of such public services¹. For this purpose, critical infrastructure refers to any public service that owns, uses, or operates systems and assets, whether physical or virtual, so vital to the Republic of the Philippines that their incapacity or destruction would have a detrimental impact on national security, including telecommunications and other vital services declared by the President of the Philippines².

In the interest of national security, an entity controlled by or acting on behalf of a foreign government or foreign-owned enterprises is barred from making any data or information disclosure, or extending assistance, support, or cooperation to any foreign government, instrumentalities, or agents¹. The National Economic and Development Authority (NEDA) is tasked to promulgate rules and regulations to implement these rules¹.