EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
S E N A T E
COMMITTEE REPORT Na.
20
Senate
(0nur e( tt)f frfcrrtarj*
•19 
NOV-7  
A10:12
RECci.'EO BY;.
Submitted jointly by the Committees on Economic Affairs and Finance on NOV - 7 2019 
RE: Senate Bill No. _ 1156
Recommending its approval in substitution of Senate Bill Nos. 418, 919 and 1024 
taking into consideration House Bill No. 300.
Sponsor: Senator Imee Marcos
MR. PRESIDENT:
The Committee on Economic Affairs; and Finance, to which were referred 
Senate Bill No. 418, introduced by Senator Francis "Kiko" Pangilinan, entitled:
AN ACT
AMENDING REPUBLIC ACT NO. 7042, OTHERWISE KNOWN AS 
THE FOREIGN INVESTMENTS ACT OF 1991, AS AMENDED BY 
REPUBLIC ACT NO. 8179, AND FOR OTHER PURPOSES
Senate Bill No. 919, introduced by Senators Win Gatchalian, entitled:
AN ACT
AMENDING REPUBLIC ACT NO. 7042, OTHERWISE KNOWN AS 
THE FOREIGN INVESTMENTS ACT OF 1991, AS AMENDED BY 
REPUBLIC ACT NO. 8179, AND FOR OTHER PURPOSES


Senate Bill No. 1024, introduced by Senator Imee Marcos, entitled;
AN ACT
PROMOTING FOREIGN INVESTMENTS, AMENDING THEREBY 
REPUBLIC ACT NO. 7042 OTHERWISE KNOWN AS THE 
"FOREIGN INVESTMENTS ACT OF 1991," AS AMENDED, AND 
FOR OTHER PURPOSES
taking into consideration House Bill No. 300, introduced by Representatives Yap 
(V.), Villafuerte, Salceda, Garin (S.), Gatchalian, Nograles (JJ.), Suansing (E.), 
Defensor,(L.), Go (M.), Babasa, Biazon, Sangcopan, Aglipay, Bagatsing, Cueva, 
Cabredo, Jalosjos, Siao, Albano (A.) and Rodriguez, entitled:
AN ACT
FURTHER PROMOTING THE ENTRY OF FOREIGN DIRECT 
INVESTMENTS IN THE COUNTRY BY AMENDING SECTIONS 4 
AND 8 OF REPUBLIC ACT NO. 7042, AS AMENDED, OTHERWISE 
KNOWN AS THE FOREIGN INVESTMENTS ACT OF 1991"
have considered the same and have the honor to report it back to the Senate with the 
recommendation that the attached Senate Bill No. , 1156
prepared by the
Committees, entitled:
"AN ACT
PROMOTING FOREIGN INVESTMENTS, AMENDING THEREBY 
REPUBLIC ACT NO. 7042 OTHERWISE KNOWN AS THE 
"FOREIGN INVESTMENTS ACT OF 1991," AS AMENDED, AND 
FOR OTHER PURPOSES"
be approved in substitution of Senate Bill Nos. 418, 919 and 1024 taking into 
consideration House Bill No. 300, with Senators Pangilinan, Gatchalian and Marcos as 
author thereof.


Respectfully submitted: 
Chairpersons
SENATOR IMEE MARCOS
Committee on Economic Affairs 
Vice-Chairperson, Sub-Committee "I" on Finance
SENATOR SONNY ANGA
Committee on Finance
Vice-Chairperson, Committee on Economic Affairs
Vice-Chairpersons
SENATOR WIN GA'TOiAOAN
Comrraittee on Economic Affairs 
Vice-Chaitpe/son, Committee on Finance
SENATOR CYNTHIA A. VILLAR
Vice-Chairperson, Committee on Finance
SENATOR JOEL VILLANUEVA
Vice-ChairpersoryVcommittee on Finance
SENATOR PIA S. CAYETANO
Vice-Chairperson, Committee on Finance 
Member, Committee on Economic Affairs
SENATOR >ANFILO M. LACSON
V ice-C hairper^, Committee on Finance
SENATOR RICHARD 3. GORDON
Vice-Chairperson, Committee on Finance


SENATOR CHR
Vice-ChairpersQ
OPHER"BONG"GO
Committee on Finance
SENATOR RISA HONTIVEROS
Vice-Chairperson, Committee on Finance
MEMBERS
S E /TA J^ MANUEL "LITO" M. LAPID
"^ m itte e  on Economic Affairs 
Committee on Finance r
SENATOR RAMON BONG REVILLA JR.
C om m itt^on Economic Affairs 
Committee on Finance
SENAT
ICIS "TOL" N. TOLENTINO
ie on Economic Affairs 
Committee^WT^^nce
SENATOR MARIA LOURDES NANCY S. 
BINAY
Committee on Finance
SENATOR EMMANUBL^^MANNY" D. SENATOR AQUILINO "KOKO" PIMENTEL 
PACQUIAO 
I I I
Committee on Finance 
Committee on Finance
SECTOR GRACE POE
Committee on Finance
SENATOR LEILA M. DE LIMA
Committee on Finance
SENATOR FRANCIS "KIKO" PANGILINAN
Committee on Economic Affairs 
Committee on Finance


Ex Officio Members
SENATOR RALPH G. RECTO
President Pro Tempore
SENATQR-JOAN MIGUEL "MIGZ" F. 
ZuBiRI
Majority Leader
SENATOR FRANKLIN M. DRILON
MinoriN leader
SENATOR VICENTE SOTTO I I I
Senate President


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s.B. No. 
1 1 5 6
^ tn a tc
•If 
NOV-7 «10:12
R E C tlV -D BY:.
Prepared and submitted jointly by the Committees on Economic Affairs; and wnance 
_______ with Senators Pangilinan, Gatchalian and Marcos as authors thereof________
AN ACT
PROMOTING FOREIGN INVESTMENTS, AMENDING THEREBY REPUBLIC ACT 
NO. 7042 OTHERWISE KNOWN AS THE "FOREIGN INVESTMENTS ACT OF 
1991," AS AMENDED, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled.
1 
SECTION 1. Section 2 of Republic Act (R. A.) No. 7042, as amended by R. A.
2 
No. 8179, otherwise known as the "Foreign Investments Act of 1991", is hereby
3 
amended, to read as follows:
4 
"Sec. 2. Declaration of Policy. -  RECOGNIZING THAT
5 
INCREASED CAPITAL AND TECHNOLOGY 
BENEFITS THE
6 
PHILIPPINES AND THAT GLOBAL AND REGIONAL ECONOMIES
7 
AFFECT THE PHILIPPINE ECONOMY, f ljit  is the policy of the State
8 
to attract, promote and welcome productive investments from foreign
9 
individuals, partnerships, corporations, and governments, including their
10 
political subdivisions, in activities which significantly contribute to
11 
[national-------Industriafeatien----- aod----- socioeconomic— -development^
12 
SUSTAINABLE, 
INCLUSIVE, 
RESILIENT, 
SMART, 
AND
13 
INNOVATIVE ECONOMIC GROWTH, PRODUCTIVITY, GLOBAL
14 
COMPETITIVENESS, 
EMPLOYMENT 
CREATION,
15 
TECHNOLOGICAL 
ADVANCEMENT, 
AND 
COUNTRYWIDE
16 
DEVELOPMENT to the extent that foreign investment is allowed in such
17 
activity by the Constitution and relevant laws, AND CONSISTENT
18 
WITH THE PROTECTION OF NATIONAL SECURITY. Foreign
19 
investments shall be encouraged in enterprises that significantly expand
1


1 
livelihood 
and 
employment opportunities for Filipinos; 
enhance
2 
economic value of [farm] AGRICULTURAL products; promote the
3 
welfare of Filipino consumers; expand the scope, quality and volume of
4 
exports and their access to foreign markets; and/or transfer relevant
5 
technologies in agriculture, industry and support services. Foreign
6 
investments shall be welcome as a supplement to Filipino capital and
7 
technology in those enterprises serving mainly the domestic market.
8 
THE STATE SHALL HOLD PUBLIC OFFICERS INVOLVED IN
9 
THE PROMOTION OF FOREIGN INVESTMENTS TO THE HIGHEST
10 
STANDARDS OF ACCOUNTABILITY AND INTEGRITY METING
11 
OUT THE LAW'S MAXIMUM PENALTIES AGAINST INACTION,
12 
ABUSE, AND CORRUPTION.
13 
As a general rule, there are no restrictions on extent of foreign
14 
ownership of export enterprises. In domestic market enterprises,
15 
foreigners can invest as much as one hundred percent (100%) equity
16 
except in areas included in the negative list. Foreign owned firms
17 
catering mainly to the domestic market shall be encouraged to
18 
undertake measures that will gradually increase Filipino participation in
19 
their businesses by taking in Filipino partners, electing Filipinos to the
20 
board of directors, implementing transfer of technology to Filipinos,
21 
generating more employment for the economy and enhancing skills of
22 
Filipino workers."
23 
Sec. 2. Section 3 of R. A. No. 7042, as amended, is hereby further amended, to
24 
read as follows:
25 
"Sec. 3. Definitions. -  As used in this Act;
26 
xxx
27 
b) the term "investment" shall mean equity participation in any
28 
enterprise organized and existing under the laws of the Philippines AND
29 
DULY RECORDED IN THE STOCK TRANSFER BOOK, OR ITS
30 
EQUIVALENT, OF THE ENTERPRISE."
31 
XXX


1 
d) the phrase "doing business" shall include soliciting orders,
2 
service contracts, opening offices, whether called "liaison" offices or
3 
branches; appointing representatives or distributors domiciled in the
4 
Philippines or who in any calendar year stay in the country for a period
5 
or periods totaling one hundred eighty (180) days or more; participating
6 
in the management, supervision or control of any domestic business,
7 
firm, entity or corporation in the Philippines; PRACTICING MULTI-
8 
LEVEL MARKETING; and any other act or acts that imply a continuity
9 
of commercial dealings or arrangements, and contemplate to that extent
10 
the performance of acts or works, or the exercise of some of the
11 
functions normally incident to, and in progressive prosecution of,
12 
commercial gain or of the purpose and object of the business
13 
organization: Provided, however. That the phrase "doing business" shall
14 
not be deemed to include mere investment as a shareholder by a foreign
15 
entity in domestic corporations duly registered to do business, and/or
16 
the exercise of rights as such investor; nor having a nominee director or
17 
officer to represent its interests in such corporation; nor appointing a
18 
representative or distributor domiciled in the Philippines which transacts
19 
business in its own name and for its own account."
20 
Sec. 3. Section 4 of R. A. No. 7042, as amended, is hereby further amended to
21 
read as follows:
22 
"Sec. 4. Scope. -  This Act shall not apply to banking and other
23 
financial institutions which are governed and regulated by the General
24 
Banking Act and other laws under the supervision of the [Central Bank]
25 
BANGKO SENTRAL NG PILIPINAS."
26 
Sec. 4. A new Section of R. A. No. 7042, as amended, is inserted as Section 5
27 
to read as follows:
28 
"SEC. 5. INVESTMENT PROMOTIONS COUNCIL -  THERE
29 
IS 
HEREBY 
CREATED 
AN 
" INVESTMENT PROMOTIONS
30 
COUNCIL", HEREINAFTER REFERRED TO AS THE " COUNCIL,"
31 
WHICH SHALL BE THE BODY THAT WILL INTEGRATE ALL
32 
PROMOTION AND FACILITATION EFFORTS TO ENCOURAGE


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
FOREIGN INVESTMENTS IN THE COUNTRY. THE COUNCIL
SHALL BE COMPOSED OF THE:
(1) SECRETARY 
OF THE 
DEPARTMENT OF TRADE 
AND 
INDUSTRY (DTI), TO PRESIDE AS CHAIRPERSON AND THE 
DTI TO ACT AS THE COUNCIL'S LEAD AGENCY;
(2) ONE (1) REPRESENTATIVE FROM THE DEPARTMENT OF 
TRADE AND INDUSTRY (DTI) -  BOARD OF INVESTMENTS 
(BOI)
(3) ONE (1) REPRESENTATIVE FROM THE DEPARTMENT OF 
TRADE AND INDUSTRY (DTI) -  PHILIPPINE ECONOMIC 
ZONE AUTHORITY (PEZA);
(4) DEPARTMENT 
OF 
FOREIGN 
AFFAIRS 
(DFA) 
-  
UNDERSECRETARY FOR ECONOMIC AFFAIRS;
(5) ONE 
(1) 
REPRESENTATITVE 
FROM 
THE 
NATIONAL 
ECONOMIC AND DEVELOPMENT AUTHORITY (NEDA);
(6) ONE (1) REPRESENTATIVE FROM THE DEPARTMENT OF 
FINANCE (DOF);
(7) ONE (1) REPRESENTATIVE FROM THE DEPARTMENT OF 
INFORMATION AND COMMUNICATIONS TECHNOLOGY 
(DICT);
(8) ONE (1) REPRESENTATIVE FROM THE COMMISSION ON 
HIGHER EDUCATION (CHED); AND
(9) ONE 
(1) 
REPRESENTATIVE 
FROM 
THE 
TECHNICAL 
EDUCATION AND SKILLS DEVELOPMENT AUTHORITY 
(TESDA).
THE CHAIRPERSON MAY FROM TIME TO TIME, AS
SPECIAL FOREIGN INVESTMENTS MAY REQUIRE, REQUEST
THE PARTICIPATION OF OTHER GOVERNMENT DEPARTMENTS
AND AGENCIES OR INSTRUMENTALITIES, LGUs, NGOs, AND
LOCAL BUSINESS CHAMBERS AND ENTERPRISES.
THE 
COUNCIL 
SHALL 
COORDINATE 
AND 
WHEN
NECESSARY 
PARTNER 
AND 
ASSIST 
WITH 
THE 
BASES


1 
CONVERSION 
AND 
DEVELOPMENT 
AUTHORITY 
(BCDA),
2 
AUTHORITY OF THE FREEPORT AREA OF BATAAN (FAB), CLARK
3 
DEVELOPMENT 
CORPORATION 
(CDC), 
SUBIC 
BAY
4 
METROPOLITAN 
AUTHORITY 
(SBMA), 
AND 
CAGAYAN
5 
ECONOMIC 
ZONE 
AUTHORITY 
(CEZA), 
IN 
PROMOTING
6 
FOREIGN INVESTMENTS TO THE COUNTRY."
7 
Sec. 5. A new Section of R. A. No. 7042, as amended, is inserted as Section 6
8 
to read as follows:
9 
"SEC. 6. POWERS AND FUNCTIONS OF THE COUNCIL -
10 
(1) TO ESTABLISH BOTH A MEDIUM- AND LONG-TERM
11 
INVESTMENT 
PRIORITIES 
PLAN 
(IPP),
12 
COORDINATING 
ALL 
EXISTING 
INVESTMENT
13 
DEVELOPMENT PLANS AND PROGRAMS UNDER THE
14 
BOI, 
PEZA, 
AND 
VARIOUS 
INVESTMENT
15 
PROMOTION AGENCIES (IPAS), LGUS, AND OTHER
16 
AGENCIES, AS DELINEATED IN SECTION 7 OF THIS
17 
ACT;
18 
(2) TO 
DESIGN 
A 
COMPREHENSIVE 
MARKETING
19 
STRATEGY 
AND 
CAMPAIGN, 
PROMOTING 
THE
20 
COUNTRY AS A DESIRABLE INVESTMENT AREA;
21 
(3) TO SUPPORT INBOUND AND OUTBOUND FOREIGN
22 
DIRECT 
AND 
TRADE 
MISSIONS 
FOR 
NEW
23 
INTERNATIONAL 
MARKETS 
TO 
EXPLORE 
THE
24 
COUNTRY AS A 
POSSIBLE 
LOCATION 
TO 
DO
25 
BUSINESS;
26 
(4) TO ENCOURAGE AND SUPPORT RESEARCH AND
27 
DEVELOPMENT IN PRIORITY AREAS INDICATED BY
28 
THE IPP;
29 
(5) TO MONITOR ACTUAL PERFORMANCE AGAINST
30 
MEASURABLE AND TIMEBOUND TARGETS IN THE
31 
IPP;


1
(6) TO SUBMIT ANNUAL EVALUATION AND REPORTS TO
2
THE PRESIDENT OF THE PHILIPPINES AND THE
3
CONGRESS REGARDING THE ACTIVITIES OF THE
4
COUNCIL;
5
(7) TO UPLOAD ESTABLISH AN EFFECTIVE ONLINE
6
DATABASE INCLUDING A DIRECTORY OF READY
7
LOCAL PARTNERS FROM PRIORITY SECTORS UNDER
8
IPP;
9
(8) TO SET UP A ONE-STOP SHOP TO INFORM AND
10
ASSIST 
FOREIGN 
INVESTORS, 
AS 
FURTHER
11
EXPLAINED UNDER SECTION 14 OF THIS ACT; AND
12
(9) TO SUPPORT LOCAL GOVERNMENT EFFORTS TO
13
PROMOTE LOCAL FOREIGN DIRECT INVESTMENTS,
14
EXPEDITE 
COMPLIANCE 
WITH 
NATIONAL
15
REQUIREMENTS 
AND 
ADDRESS 
OTHER
16
SAFEGUARDS 
AND 
SERVICES 
REQUESTED 
BY
17
FOREIGN 
INVESTORS 
IN 
THEIR 
DIFFERENT
18
LOCALITIES 
INVOLVED 
WITH 
SAID 
FOREIGN
19
INVESTMENTS."
20
Sec. 6. A new Section of R. A. No. 7042, as amended, is inserted as Section 7
21
to read as follows:
22
"SEC. 
7. 
DEVELOPMENT 
OF 
THE 
INVESTMENT
23
PRIORITIES PLAN (IPP). 
-  
A 
COMPREHENSIVE 
AND
24
STRATEGIC INVESTMENT PRIORITIES PLAN (IPP) SHALL BE
25
DEVELOPED BY THE COUNCIL FOR THE MEDIUM FIVE-YEAR
26
AND THE LONG-TERM TEN-YEAR PLAN: PROVIDED, THAT, IT IS
27
BASED ON COMPETITIVE ADVANTAGES, NATURAL RESOURCES,
28
SKILL AND 
EDUCATIONAL 
DEVELOPMENT, TRADITIONAL
29
LINKAGES, 
AND 
INTERNATIONAL 
MARKET 
POTENTIAL:
30
PROVIDED, 
FURTHER, 
THAT, 
AN 
ONLINE 
DATABASE
31
CONTAINING THE IPP SHALL THEREAFTER BE UPLOADED,
6


1 
CONTAINING FURTHER DETAILS REGARDING THE COUNCIL'S
2 
PROCEDURE, CONTACTS, SCHEDULES, ETC.
3 
SAID DATABASE SHOULD ALSO INCLUDE A DIRECTORY
4 
OF LOCAL ENTERPRISES CAPABLE AND WILLING TO PARTNER
5 
WITH POTENTIAL FOREIGN INVESTORS. THE COUNCIL SHALL
6 
CONSULT LOCAL CHAMBERS OF COMMERCE, SECTORAL,
7 
BUSINESS GROUPS, AND OTHER INDIVIDUAL PARTNERS
8 
WHENEVER 
FOREIGN 
APPLICANTS 
SEEK 
PARTNERS,
9 
SUBCONTRACTORS, SUPPLIERS, AND OTHER LOCAL BUSINESS
10 
COUNTERPARTS.
11 
FURTHER, IN SUPPORTOF THE IPP, THE DEPARTMENT OF
12 
PUBLIC WORKS AND HIGHWAYS (DPWH), DEPARTMENT OF
13 
TRANSPORTATION 
(DOTR), 
DICT, AND OTHER RELATED
14 
AGENCIES SHALL PRIORITIZE CRITICAL INFRASTRUCTURE
15 
AND OTHER REQUIREMENTS OF THE FOREIGN INVESTORS.
16 
SIMILARLY, 
DEPED, 
CHED, 
TESDA, 
DOLE 
AND 
OTHER
17 
TRAINING AGENCIES INVOLVED IN EDUCATION AND SKILLS
18 
DEVELOPMENT SHALL LIKEWISE DIRECT CURRICULUM AND
19 
TRAINING EFFORTS TOWARD MANPOWER REQUIREMENTS OF
20 
THE IPP."
21 
Sec. 7. Section 7 of R. A. No. 7042, as amended, is hereby further amended to
22 
read as follows:
23 
"Section [7] 10. Foreign Investments in Domestic Market
24 
Enterprises. - Non-Philippine nationals may own up to one hundred
25 
percent (100%) of domestic market enterprises unless foreign
26 
ownership therein is prohibited or limited by existing law or the Foreign
27 
Investment Negative List {under Section 8 hereofj."
28 
Sec. 8. A new Section of R.A.7042, as amended, is inserted as Section 11 to
29 
read as follows:
30 
"SEC. 11. FOREIGN ONLINE BUSINESS. - BUSINESS
31 
ENTITIES, REGARDLESS OF REGISTRY AND INCORPORATION,
32 
CONDUCTING ECONOMIC ACTIVITIES AND CONSUMMATING


1 
BUSINESS TRANSACTIONS IN THE PHILIPPINES, THROUGH
2 
ONLINE, 
DIGITAL, 
OR 
ELECTRONIC 
COMMERCE 
(E-
3 
COMMERCE), MAY BE CONSIDERED DOMESTIC MARKET
4 
ENTERPRISES TO BE REGULATED UNDER THIS ACT AND
5 
OTHER RELEVANT TAX, CORPORATE, AND OTHER LAWS.
6 
HOWEVER, SUCH FOREIGN INVESTMENT ENGAGED IN E-
7 
COMMERCE SHALL NOT FALL UNDER THE PROHIBITIONS ON
8 
MEDIA AND EDUCATION UNLESS THE GREATER PART OF
9 
THEIR BUSINESS TRANSACTED IS CONDUCTED IN THE
10 
PHILIPPINES."
11 
Sec, 9. Section 8 of R.A. No. 7042, as amended, is hereby further amended to
12 
read as follows:
13 
"Sec. [8] 12. List of Investment Areas Reserved to Philippine
14 
Nationals (Foreign Investment Negative List). -  xxx
15 
"a) xxx
16 
"b) xxx
17 
"1) xxx
18 
"2) xxx
19 
"Small and medium-sized domestic market enterprises with 
paid-
20 
in equity capital less than the equivalent of Two hundred thousand US
21 
dollars (US$200,000.00), are reserved to Philippine nationals: Provided,
22 
That if: (1) they involve advanced technology as determined by the
23 
Department of Science and Technology, or (2) they employ at least
24 
[fifty (50)] FIFTEEN (15) direct employees then a minimum paid-in
25 
capital of One hundred thousand US dollars (US$100,000.00) shall be
26 
allowed to non-Philippine nationals.
27 
xxx
28 
xxx
29 
"Amendments to FOREIGN INVESTMENT 
NEGATIVE LIST
30 
[-List-B after promulgation and publication of the first Regular Foreign
31 
Investment Negative List at the end of the transitory period shall not
32 
be made more often than onee -every two -(2)-years] 
SHALL BE


1 
SUBMITTED ANNUALLY BY THE NEDA, A COPY OF WHICH
2 
SHALL BE SUBMITTED TO CONGRESS AT THE END OF MARCH
3 
PROVIDING 
THEREWITH 
AN 
ANALYSIS 
OF 
FOREIGN
4 
INVESTMENT PERFORMANCE ECONOMIC ACTIVITIES AND
5 
THE REASONS FOR THE RECOMMENDED AMENDMENTS, IF
6 
ANY."
7 
Sec. 10. Section 12 of R.A. No. 7042, as amended, is hereby further amended
8 
to read as follows:
9 
"Section 
16. {Gonsistent Government-Action] WHOLE-OF-
10 
GOVERNMENT APPROACH OF 
THE IPP. 
- 
No 
agency,
11 
instrumentality or political subdivision of the Government shall take any
12 
action on conflict with or which will nullify the provisions of this Act, or
13 
any certificate or authority granted hereunder."
14 
Sec. 11. A new Section of R.A. No. 7042, as amended, is inserted as Section 18
15 
to read as follows:
16 
"SEC. 18. THE DEPARTMENT OF NATIONAL DEFENSE
17 
(DND), NATIONAL SECURITY COUNCIL (NSC), DEPARTMENT
18 
OF FOREIGN AFFAIRS (DFA), DEPARTMENT OF INTERIOR AND
19 
LOCAL GOVERNMENT (DILG), AND SUCH OTHER GOVERNMENT
20 
DEPARTMENTS OR AGENCIES WITH SECURITY CONCERNS,
21 
SHALL REVIEW FOREIGN INVESTMENTS AND TRANSACTIONS
22 
THAT MAY THREATEN NATIONAL SECURITY OR JEOPARDIZE
23 
INTERNATIONAL RELATIONS. THE REVIEW MAY INCLUDE THE
24 
IMPACT ANALYSIS 
OF A 
FOREIGN 
INVESTMENT 
UPON
25 
DIPLOMATIC AND TRADE NEGOTIATIONS, THE SAFETY AND
26 
PROTECTION OF FILIPINO NATIONALS OVERSEAS, EFFECTS
27 
ON ONGOING NEGOTIATIONS OF ANY TREATIES, TRADE OR
28 
MITIGATION AGREEMENTS, AND OTHER SIMILAR ISSUES. ANY
29 
RECOMMENDATION TO SUSPEND, PROHIBIT, OR OTHERWISE
30 
LIMIT A REVIEWED FOREIGN SHALL BE TRANSMITTED TO THE
31 
OFFICE OF THE PRESIDENT FOR APPROPRIATE ACTION."


1 
Sec. 12. A new Section of R.A. No. 7042, as amended, is inserted as Section 19
2 
to read as follows:
3 
"SEC 19. ONE-STOP SHOP. -  UPON THE EFFECTIVITY OF
4 
THIS ACT, A "ONE-STOP SHOP’ SHALL IMMEDIATELY BE
5 
ESTABLISHED BY THE COUNCIL, TO FACILITATE AND EXPEDITE
6 
FOREIGN INVESTMENTS INTO THE PHILIPPINES. IN ADDITION
7 
TO AN ONLINE DATABASE AND PRE-REGISTRATION FACILITY,
8 
SAID 
ONE-STOP 
SHOP 
SHALL 
RESPOND 
TO 
SPECIFIC
9 
INVESTORS' QUERRIES, ASSIGNING SUCH INVESTORS AN
10 
INVESTMENT SPECIALIST TO HANDLE THEIR CONCERNS,
11 
ADDRESS 
SPECIAL 
CONCERNS, 
AND 
LINK 
THEM, 
AS
12 
NECESSARY, TO CONCERNED GOVERNMENT DEPARTMENTS
13 
AND AGENCIES.
14 
REPUBLIC ACT NO. 11032 OTHERWISE KNOWN AS THE
15 
"EASE OF DOING BUSINESS AND EFFICIENT GOVERNMENT
16 
SERVICE DELIVERY ACT OF 2018'' AND R.A. NO. 9485
17 
OTHERWISE KNOWN AS THE "ANTI-RED TAPE ACT OF 2007,"
18 
AMONG OTHERS, SHALL BE ENFORCED FULLY TO ASSIST AND
19 
EXPEDITE FOREIGN INVESTORS' APPLICATIONS. "
20 
Sec. 13. A new Section 20 of R.A. No. 7042, as amended, is inserted as Section
21 
20 to read as follows:
22 
SEC. 
20. 
ANTI-GRAFT 
PRACTICES 
IN  
FOREIGN
23 
INVESTMENT PROMOTIONS. 
-  
PUBLIC 
OFFICIALS 
AND
24 
EMPLOYEES 
INVOLVED 
IN 
FOREIGN 
INVESTMENT
25 
PROMOTIONS SHALL UPHOLD THE HIGHEST STANDARDS OF
26 
PUBLIC SERVICE, ACCOUNTABILITY, AND INTEGRITY. THE
27 
MAXIMUM PENALTIES SHALL BE IMPOSED UPON ERRING
28 
OFFICIALS 
AND 
EMPLOYEES 
INVOLVED 
IN 
FOREIGN
29 
INVESTMENT PROMOTIONS, AS FOLLOWS:
30 
(1) 
ANY 
PUBLIC 
OFFICIAL 
OR 
EMPLOYEE 
WHO
31 
VIOLATES 
THE 
FOLLOWING 
ACTS 
SHALL 
BE
32 
PUNISHED BY A FINE OF NOT LESS THAN ONE
10


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
MILLION PESOS (P 1,000,000.00) BUT NOT MORE 
THAN FIVE MILLION PESOS (P 5,000,000.00) OR 
IMPRISONMENT OF SIX (6) YEARS AND ONE (1) DAY 
TO TWELVE 
(12) 
YEARS, 
OR 
BOTH, AT THE 
DISCRETION OF THE COURT, AND PERPETUAL 
ABSOLUTE DISQUALIFICATION:
(A) 
REFUSAL 
TO 
ACCEPT 
APPLICATION 
OR 
REQUEST WITH COMPLETE REQUIREMENTS 
BEING SUBMITTED BY A FOREIGN INVESTOR 
OR REQUESTING PARTY WITHOUT DUE CAUSE;
(B) 
IMPOSITION OF ADDITIONAL REQUIREMENTS 
OR COSTS OTHER THAN THOSE PROVIDED BY 
LAW;
(C) 
FAILURE TO GIVE THE FOREIGN INVESTOR OR 
REQUESTING PARTY A WRITTEN NOTICE ON 
THE DISAPPROVAL OF AN APPLICATION OR 
REQUEST;
(D) 
FAILURE TO RENDER GOVERNMENT SERVICES 
WITHIN THE PRESCRIBED PROCESSING TIME 
ON ANY APPLICATION OR REQUEST WITHOUT 
DUE CAUSE;
(E) 
FAILURE TO ATTEND TO FOREIGN INVESTORS 
OR REQUESTING PARTIES WHO ARE WITHIN 
THE PREMISES OF THE OFFICE OR AGENCY 
CONCERNED PRIOR TO THE END OF OFFICIAL 
WORKING 
HOURS 
AND 
DURING 
LUNCH 
BREAK; AND
(F) 
FAILURE 
OR 
REFUSAL 
TO 
ISSUE 
ACKNOWLEDGMENTS AND/OR RECEIPTS.
(2) 
ANY 
PUBLIC 
OFFICIAL 
OR 
EMPLOYEE 
WHO 
VIOLATES 
THE 
FOLLOWING 
ACTS 
SHALL 
BE 
PUNISHED BY A FINE OF NOT LESS THAN TEN
11


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
MILLION PESOS (P 10,000,000.00) BUT NOT MORE 
THAN TWENTY MILLION PESOS (P 20,000,000.00) 
OR IMPRISONMENT OF TWENTY (20) YEARS AND 
ONE (1) DAY TO THIRTY (30) YEARS, OR BOTH, AT 
THE DISCRETION OF THE COURT, AND PERPETUAL 
ABSOLUTE DISQUALIFICATION:
(A) 
ANY PUBLIC OFFICIAL OR EMPLOYEE WHO 
MISAPPROPRIATES FEES AND CHARGES PAID 
BY FOREIGN INVESTORS;
(B) 
PERSUADING, INDUCING, OR INFLUENCING 
ANOTHER PUBLIC OFFICER OR EMPLOYEE TO 
PERFORM 
AN 
ACT 
CONSTITUTING 
A 
VIOLATION OF THIS ACT OR RULES AND 
REGULATIONS DULY PROMULGATED BY THE 
COUNCIL;
(C) 
DIRECTLY OR INDIRECTLY REQUESTING OR 
RECEIVING 
ANY 
GIFT, 
PRESENT, 
SHARE, 
PERCENTAGE, 
OR 
BENEFIT, 
FOR 
HIMSELF/HERSELF 
OR 
FOR 
ANY 
OTHER 
PERSON, 
IN 
CONNECTION 
WITH 
ANY 
CONTRACT OR TRANSACTION BETWEEN THE 
COUNCIL 
AND 
OTHER 
DEPARTMENT 
OR 
AGENCY, WHEREIN THE PUBLIC OFFICER OR 
EMPLOYEE, IN HIS OFFICIAL CAPACITY, HAS 
TO INTERVENE UNDER THE LAW;
(D) 
DIRECTLY OR INDIRECTLY REQUESTING OR 
RECEIVING ANY GIFT, PRESENT, OR OTHER 
PECUNIARY BENEFIT FOR HIMSELF/HERSELF 
OR 
FOR ANOTHER, 
FROM 
ANY 
FOREIGN 
INVESTOR FOR WHOM THE PUBLIC OFFICER 
OR EMPLOYEE, IN ANY MANNER OR CAPACITY,
12


1
WILL SECURE OR OBTAIN ANY PERMIT OR
2
LICENSE;
3
(E)
ACCEPTING OR HAVING ANY MEMBER OF HIS
4
OR HER FAMILY ACCEPT EMPLOYMENT IN ANY
5
FOREIGN INVESTOR WHICH HAS PENDING
6
OFFICIAL 
BUSINESS WITH 
HIM 
OR 
HER
7
DURING THE PENDENCY THEREOF OR WITHIN
8
ONE (1) YEAR AFTER ITS TERMINATION;
9
(F)
CAUSING ANY UNDUE INJURY TO ANY PARTY
10
OR GIVING ANY FOREIGN INVESTOR ANY
11
UNWARRANTED BENEFIT, ADVANTAGE, OR
12
PREFERENCE IN THE DISCHARGE OF HIS OR
13
HER 
OFFICIAL 
FUNCTIONS 
THROUGH
14
MANIFEST PARTIALITY, EVIDENT BAD FAITH,
15
OR GROSS INEXCUSABLE NEGLIGENCE;
16
(G)
DIRECTLY 
OR 
INDIRECTLY 
HAVING
17
PECUNIARY INTEREST IN ANY BUSINESS,
18
CONTRACT, 
OR 
TRANSACTION 
IN
19
CONNECTION 
WITH 
WHICH 
HE 
OR 
SHE
20
INTERVENES, 
IN 
HIS 
OR 
HER 
OFFICIAL
21
CAPACITY, IN CONTRAVENTION OF THE LAW;
22
(H)
KNOWINGLY APPROVING OR GRANTING ANY
23
LICENSE, PERMIT, OR BENEFIT IN FAVOR OF
24
ANY FOREIGN INVESTOR NOT QUALIFIED OR
25
ENTITLED TO SUCH; AND
26
(I)
DIVULGING 
CONFIDENTIAL 
INFORMATION
27
ACQUIRED THROUGH HIS OR HER OFFICE."
28
Sec.
14. The
'emaining sections of R.A. 7042, as amended, are hereby
29
renumbered accordingly.
30
Sec. 15. Appropriation. -  The amount necessary to carry out the provisions of
31
this Act shall be included in the budget of the concerned departments and agencies in
32
the General Appropriations Act (GAA).
13


1 
Sec. 16. Repealing Clause. -  All laws, decrees, orders, rules and regulations or
2 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby
3 
repealed or modified accordingly.
4 
Sec. 17. Separability Clause. -  If any portion or provision of this Act is declared
5 
unconstitutional, the remainder of this Act or any provision not affected thereby shall
6 
remain in force and effect.
7 
Sec. 18. Effectivity. -  This Act shall take effect after fifteen (15) days following
8 
the completion of its publication either in the Official Gazette or in a newspaper of
9 
general circulation in the Philippines.
10 
Approved,
14