Foreign Investments Act of 1991 (Republic Act No. 7042)

1. All areas of investment in which foreign ownership is limited by mandate of Constitution and specific laws. B. List B:

1. Manufacture, repair, storage and/or distribution of firearms, ammunition, lethal weapons, military ordnance, explosives, pyrotechnics and similar materials required by law to be licensed by and under the continuing regulation of the Department of National Defense; unless such manufacturing or repair activity is specifically authorized, with substantial export component, to a non-Philippine national by the Secretary of National Defense;

2. Manufacture and distribution of dangerous drugs; all forms of gambling; nightclubs, bars, beerhouses, dance halls; sauna and steam bathhouses, massage clinics and other like activities regulated by law because of risks they may pose to public health and morals;

3. “Small and medium-sized domestic market enterprises with paid-in equity capital less than the equivalent of Two-hundred thousand US dollars (US$200,000.00), reserved to Philippine nationals: Provided, That if: (1) they involve advanced technology as determined by the Department of Science and Technology or (2) they employ at least fifty (50) direct employees, then a minimum paid-in capital of One hundred thousand US dollars (US$100,000.00) shall be allowed to non-Philippine nationals. SEC. 16. Repealing Clause. - Articles forty-four (44) to fifty-six (56) of Book II of Executive Order No. 226 are hereby repealed. All other laws or parts of laws inconsistent with the provisions of this Act are hereby repealed or modified accordingly. SEC. 17. Separability Clause. - If any part or section of this Act is declared unconstitutional for any reason whatsoever, such declaration shall not in any way affect the other parts or sections of this Act. SEC. 18. Effectivitiy. - This Act take effect from fifteen (15) days after approval and publication in two (2) newspapers of general circulation in the Philippines. Approved, (SGD) JOSE DE VENECIA, JR. (SGD) NEPTALI A. GONZALES Speaker of the House of Representatives President of the Senate This Act, which is a consolidation of Senate Bill No. 1399 and House Bill No. 5029 was finally passed by the Senate and the House of Representatives on March 25, 1996. CAMILO L. SABIO HEZEL P. GACUTAN Secretary General Secretary of the Senate House of Representatives Approved: March 28, 1996 (SGD) FIDEL V. RAMOS President of the Philippines