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What is the Foreign Investments Act (FIA) of 1991?

April 26, 2017ACT FIA foreign investments

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What is the Foreign Investments Act (FIA) of 1991?

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Foreign Investments Act (FIA) of 1991 (or Republic Act 7042 and Republic 8179) allows foreign ownership of up to 100% in most industries, except those specified in the Foreign Investment Negative List (FINL). Investors who do not seek incentives and/or whose chosen activities do not qualify for incentives, (i.e. the activity is not listed in the IPP, and they are not exporting at least 70% of their production) may go ahead and make the investments. They only have to be guided by the FINL. The FINL clearly defines investment area requiring at least 60% Filipino ownership. All other areas outside this list are fully open to foreign investors.