SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
of thr anTirtflrp
*19 
MAY 21 
P 5 2 l
S E N A T E
RECEivi.8t-
COMMITTEE REPORT No.
669
Submitted jointly by the Committees on Economic Affairs; Trade, Commerce and
Entrepreneurship 
MAY 2 1 2019
RE: Senate Bill No. 
2227____
Recommending its approval amending SBN 2102.
Sponsor: Senator Sherwin Gatchalian
MR. PRESIDENT:
The 
Committee 
on 
Economic 
Affairs; 
and 
Trade, 
Commerce 
and 
Entrepreneurship, to which were referred Senate Bill No. 2102, introduced by Senator 
Sherwin 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"
If W A S
have considered the same and have the honor to report it back to the Senate with 
the recommendation that the attached Senate Bill No. 
2227 
prepared by 
the Committees, entitled:
"AN ACT
AMENDING REPUBLIC ACT NO. 7042, O T H E l^tS E ^^fitlW N  AS 1 
THE FOREIGN INVESTMENTS ACT OF 1991, AS AMENDED BY 
REPUBLIC ACT NO. 8179, AND FOR OTHER PURPOSES"


be approved in substitution of Senate Bill No. 2102, with Sen. Gatchalian as author 
thereof.
Respectfully submitted:
ersons
SEN. SHERWIN GATCMT^IAN
Committee on Economic Affairs
Vice-Chairperson, Committee orVTra(^, Commerce and Entrepreneurship
SEN. AQ UILINO  "KOKO" PIMENTEL I I I
Committee on Trade, Commerce and Entrepreneurship 
Member, Committee on Economic Affairs
Vice-Chairpersons
SEN. JO ^V IL LA N U E V A
Committee ion Economic Affairs
A*-


Members:
SEN. JOSEPH VICTOR G. EJERCITO
Committee on Economic Affairs
SEN. MARIA LOURDES S. BINAY
Committee on Economic Affairs
SEN. RICHARD J. GORDON
Committees on Economic Affairs and 
Trade, Commerce and Entrepreneurship
SEN. FRANCIS "C H IZ7' ESCUDERO
Committee on Economic Affairs
SEN. ANTONIO TRILLANES IV
Committee on Economic Affairs
SEN. FRANCIS "K IK O " 
PANGILINAN
Committee on Economic Affairs
SEN. CYNTHIA A. VILLAR
Committee on Trade, Commerce and 
Entrepreneurship
SEN. LOREN-iEGARDA
Committee on Trade, Commerce and 
Entrepreneurship
SEN. PAOLO BENIGNO "B A M " 
AQUINO IV
Committee on Trade, Commerce and 
Entrepreneurship
SEN. SONNy ANGAI
Committee on Trade, Commerce and 
Entrepreneurship
GRACE POE
Coi^mittee on Trade, Commerce and 
Entrepreneurship


Ex Officio Members:
SEN. RALPH G. RECTO
President Pro Tempore
S E N iF I^N K L IN  M. DRILON
Minofib' Leader
SENr^JUAN MIGUEL "M IG Z " F. 
ZU BIR I
Majority Leader
HON. VICENTE SOTTO I I I
Senate President
. * « - v  -•
WS'


SEVENTEENTH CONGRESS OF THE 
] 
REPUBLIC OF THE PHILIPPINES 
]
Third Regular Session 
]
SENATE BILL No. 2227
^  
of tbr £»L-crrti)rji
•19 
MAY 21 
P 5  ;21
(In Substitution of Senate Bill No. 2102) 
RECEiMiE'-
Prepared and submitted by the Committees on Economic Affairs and Trade, Commerce 
and Entrepreneurship with Senator Gatchaiian as author thereof
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
Be it enacted by the Senate and the House o f Representatives o f the Philippines 
in Congress assembled:
1 
Section 1. Short Title. -  Section 2 of Republic Act No. 7042 (R.A. 7042), as
2 
amended by Repubiic Act No. 8179, otherwise known as the Foreign Investments Act
3 
of 1991, is hereby amended to read as foliows:
4 
"Sec. 
2. 
Deciaration 
of Policy. -  RECOGNIZING THAT
5 
INCREASED 
CAPITAL 
AND 
TECHNOLOGY 
BENEFITS 
THE
6 
PHILIPPINES AND THAT GLOBAL AND REGIONAL ECONOMIES
7 
AFFECT THE PHILIPPINE ECONOMY, [i]t is the poiicy of the State to
8 
attract, promote and welcome productive investments from foreign
9 
individuais, partnerships, corporations, and governments, inciuding their
. U>0 
political subdivisions, in activities which significantly contribute to
r-mpnf-ii 
[national 
industrialization 
and 
socioeconomic 
development]
12 
SUSTAINABLE 
INCLUSIVE 
ECONOMIC 
GROWTH,
13 
PRODUCTIVITY, GLOBAL COMPETITIVENESS, 
EMPLOYMENT


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CREATION, 
TECHNOLOGICAL 
ADVANCEMENT, 
AND 
COUNTRYWIDE DEVELOPMENT to the extent that foreign investment 
is allowed in such activity by the Constitution and relevant laws, AND 
CONSISTENT W ITH THE PROTECTION OF NATIONAL SECURITY. 
Foreign investments shall be encouraged in enterprises that significantly 
expand livelihood and employment opportunities for Filipinos; enhance 
economic value of [farm] AGRICULTURAL products; promote the 
welfare of Filipino consumers; expand the scope, quality and volume of 
exports and their access to foreign markets; and/or transfer relevant 
technologies in agriculture, industry and support sen/ices. Foreign 
investments shall be welcome as a supplement to Filipino capital and 
technology in those enterprises serving mainly the domestic market, 
xxxx"
Sec. 2. Section 3 of R.A. 7042 is hereby amended to read as follows: 
"Sec. 3. Definitions. -  As used in this Act:
XXX
b) the term "investment" shall mean equity participation in any 
enterprise organized and existing under the laws of the Philippines AND
DULY RECORDED IN  THE STOCK TRANSFER BOOK, OR ITS 
EQUIVALENT, OF THE ENTERPRISE."
Sec. 3. Section 4 of R.A. 7042 is hereby amended to read as follows: 
"Sec. 4. Scope. -  This Act shall not apply to banking and other 
financial institutions which are governed and regulated by the General 
Banking Act and other laws under the supervision of the [Central Bank]
BANGKO SENTRAL NG PILIPIN AS, AND THE PRACTICE OF 
PROFESSIONS."
: , 
_ Sec. 4. Tp|E NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY 
(NEDA), IN  COOPERATION AND CONSULTATION W ITH THE BOARD OF 
INVESTMENTS (B O I), THE DEPARTMENT OF TRADE AND INDUSTRY (D T I),


1 
THE SECURITIES AND EXCHANGE COMMISSION (SEC), THE DEPARTMENT
2 
OF 
INFORMATION 
AND 
COMMUNICATIONS 
TECHNOLOGY 
(DICT),
3 
INVESTMENT PROMOTION AGENCIES (IP A s), AND OTHER PERTINENT
4 
GOVERNMENT AGENCIES, SHALL CONDUCT AN ANNUAL REVIEW OF THE
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FOREIGN INVESTMENT NEGATIVE LIST AND SUBMIT TO CONGRESS EVERY
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APRIL 30 OF THE YEAR THE OUTPUT OF THE STAKEHOLDERS' ANALYSIS ON
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THE CONTRIBUTION TO THE ECONOMY OF THE INVESTMENT AREAS,
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INDUSTRIES OR SECTORS THAT W ILL BE LIBERALIZED AND EXCLUDED IN
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THE FOREIGN INVESTMENT NEGATIVE LIST. 
IT  SHALL LIKEWISE
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RECOMMEND TO CONGRESS INVESTMENT-RELATED MATTERS REQUIRING
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NECESSARY LEGISLATION, (n)
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Sec. 5. IN  ORDER TO EFFECTIVELY GUIDE INVESTORS ON POTENTIAL
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AREAS 
OF 
INVESTMENTS 
IN  
THE 
PHILIPPINES, 
THE 
BOI, 
IN
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COORDINATION 
AND 
COOPERATION 
W ITH 
OTHER 
GOVERNMENT
16 
AGENCIES AND INVESTMENT PROMOTION AGENCIES, SHALL MAKE
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AVAILABLE FOR PUBLIC ACCESS A JOINT WEB PORTAL THAT W ILL BEAR
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ALL INFORMATION PERTINENT TO INVESTMENT POLICIES, PROGRAMS,
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AND PROCEDURES. THE WEB PORTAL SHALL ALSO INCLUDE INFORMATION
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ON RELEVANT INDUSTRIES AND SERVICES THAT W ILL BE PROMOTED FOR
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INVESTMENTS PURPOSES, A DATABASE OF FILIPIN O  SMALL AND MEDIUM
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ENTERPRISES THAT COULD BE POTENTIAL PARTNERS OF FOREIGN
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INVESTORS, REGIONAL INVESTMENT INFORMATION, AND SUCH OTHER
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RELEVANT INFORMATION NEEDED IN  SETTING UP BUSINESS IN  THE
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PHILIPPINES, (n)
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Sec. 6. THE NEDA IS HEREBY DIRECTED TO MAKE THE NECESSARY
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AMENDMENTS TO THE IMPLEMENTING RULES AND REGULATIONS OF
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REPUBLIC ACT NO. 7042, AS AMENDED, IN  ORDER TO REFLECT THE
30 
CHANGES EMBODIED IN  THIS AGT;Ji ^rt>tATI01;<Afr c;„


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Sec. 7. Repealing Clause. -  All statutory laws, orders, issuances, rules and
2 
regulations, and/or parts thereof which are inconsistent with the provisions of this Act
3 
are hereby repealed or modified accordingly.
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Sec. 8. Separability Clause. -  If any portion or provision of this Act is declared
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invalid or unconstitutional, the portions or provisions which are not affected shall
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remain valid and in force and effect.
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Sec. 9. Effectivity. -  This Act shall take effect fifteen (15) days after its
10 
publication in the Official Gazette or in a newspaper of general circulation.
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Approved,
r rv