Existing Measures:
National Land Code [Act 56 of 1965]
Sarawak Land Code 1958 [Chapter 81] (1958 Edition)
Sabah Land Ordinance 1950 [Sabah Cap. 68] Town and Country Planning Act 1976 [Act 172] Plant Quarantine Act 1976 [Act 167]
Animals Act 1953 (Act 647)
Animal Welfare Enactment 2015 [Act 772]
Customs Prohibition of Imports and Exports Orders
National Agricultural Policy Administrative Guidelines
21. Sector: Forestry
Obligations Concerned: National Treatment, Most-Favoured-Nation Treatment, Senior Management and Board of Directors, Prohibition of Performance Requirements
Description: Non-citizens and juridical persons owned by foreign nationals will need to seek the approval of the relevant state authority, and are subject to such conditions and restrictions as may be imposed by the relevant state authority.
Extraction and harvesting of timber are closed to foreign investors in Peninsular Malaysia and Sabah. However, for Sarawak, local involvement and majority local control are required. Forest areas opened for such activities are subject to an Annual Allowable Cut to enable the resources to be managed sustainably.
Services incidental to extraction and harvesting of timber are closed to foreign investors in Peninsular Malaysia and Sabah. However, for Sarawak, the maximum foreign equity ownership allowed is 30 per cent.
Existing Measures:
National Forestry Act 1984 [Act 313]
Sabah Forest Enactment 1968 [Sabah No. 2 of 1968]
Sarawak Forests Ordinance 2015 [Chapter 71]
International Trade in Endangered Species Act 2008 [Act 686]
Wildlife Conservation Act 2070 [Act 716]
Malaysia Timber Industry Board (Incorporation) Act 1973 [Act 105]
Malaysia Policy on Forestry 2021 State Forestry Laws Administrative Guidelines
22. Sector: All sectors
Subsector:
Obligations Concerned: National Treatment, Most-Favoured-Nation Treatment, Senior Management and Board of Directors, Prohibition of Performance Requirements
Description: Malaysia reserves the right to adopt or maintain any measure that it considers necessary for the protection of its essential security interests.
Existing Measures:
Strategic Trade Act 2010 [Act 708]
Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 [Act 613]
Chemical Weapons Convention Act 2005 [Act 641]
Arms Act 1960 [Act 206] Explosive Act 1957 [Act 207]
Chemical Weapons Convention Regulations 2007 [P.U.(A) 361/2007]
Customs Prohibition of Imports and Exports Orders
23. Sector: All sectors
Subsector:
Obligations Concerned: National Treatment, Most-Favoured-Nation Treatment, Senior Management and Board of Directors, Prohibition of Performance Requirements
Description: Malaysia reserves the right to adopt or maintain any measure relating to investments other than those recognised or should have been recognised by the Government of Malaysia owing to the circumstances existing at the date of entry into force of this Agreement for Malaysia.
Malaysia reserves the right to adopt or maintain any measure relating to investments which was not technically feasible at the date of entry into force of this Agreement for Malaysia.
Existing Measures:
24. Sector: All sectors
Subsector:
Obligations Concerned: Prohibition of Performance Requirements
Description: Malaysia reserves the right to adopt, maintain, impose requirements, or enforce a commitment or undertaking, in connection with transfer of technology, production process or other proprietary knowledge.
Existing Measures:
25. Sector : All sectors
Subsector:
Obligations Concerned: National Treatment, Most-Favoured-Nation Treatment, Senior Management and Board of Directors, Prohibition of Performance Requirements
Description : Malaysia reserves the right to adopt or maintain any measure relating to the Shared Prosperity Vision 2030, the New Industrial Masterplan (6) and the National Investment Aspirations (7).
Existing Measures : Shared Prosperity Vision 2030 New Industrial Masterplan Policies and Ministerial Statements
26. Sector: All Sectors
Subsector:
Obligations Concerned: National Treatment
Description: The purchase of a financial service by a resident from a financial service supplier abroad shall be subject to the requirements, restrictions and conditions imposed under the Foreign Exchange Policy Notices.
Existing Measures:
Central Bank of Malaysia Act 2009 [Act 701]
Financial Services Act 2013 [Act 758]
Islamic Financial Services Act 2013 [Act 759]
Foreign Exchange Policy Notices
ANNEX 3. SCHEDULE OF RESERVATIONS AND NON-CONFORMING MEASURES FOR INVESTMENT. THE PHILIPPINES
LIST A. EXPLANATORY NOTES
1. This List A sets out, pursuant to Article 13 (Reservations and Non-Conforming Measures) of Chapter 11 (Investment), measures that do not conform to the obligations under:
(a) Article 3 (National Treatment) of Chapter 11 (Investment);
(b) Article 4 (Most-Favoured-Nation Treatment) of Chapter 11 (Investment);
(c) Article 5 (Senior Management and Board of Directors) of Chapter 11 (Investment); and
(d) Article 6 (Prohibition of Performance Requirements) of Chapter 11 (Investment).
2. This List A and List B follow the negative list with two list approach as follows:
(a) This List A sets out commitments in relation to existing non-conforming measures which will be subject to standstill obligations but not subject to ratchet mechanism; and
(b) List B sets out policy flexibility in relation to measures in sectors, subsectors and activities.
3. The Philippines may add, withdraw or modify any of its reservations as set out in this List A for a period of 24 months from the date of entry into force of this Schedule, provided that the non-conforming measure is in existence as of the date of entry into force of the Second Protocol.
4. Each reservation shall set out the following elements, where applicable: (a) Sector refers to the sectors in which a reservation is taken; (b) Subsector, refers to specific industries, products, or activities in which a reservation is taken;
(c) Industry Classification refers to the activities covered by the reservation according to International Standard Industrial Classification ("ISIC") Revision 3 for manufacturing, agriculture, fishery, forestry, mining and quarrying. If the reservation does not exactly conform to the ISIC, the Philippines specified the coverage of the reservation, as necessary and appropriate;
(d) Level of Government specifies the level of government maintaining the measure for which a reservation is taken;
(e) Type of Obligation refers to the obligation of National Treatment, Most-Favoured-Nation Treatment, Senior Management and Board of Directors, and Prohibition of Performance Requirements, as the case may be, which does not apply to the listed measure;
(f) Description of Measure refers to measures that do not conform to National Treatment, Most-Favoured-Nation Treatment, Senior Management and Board of Directors and Prohibition of Performance Requirements, for which a reservation is taken; and
(g) Source of Measure refers to existing measures that apply to the sector, subsector or activities covered by the reservations and is identified for transparency purposes only.
2. In the interpretation of a reservation, all elements of a reservation shall be considered. The Description of Measure element shall prevail over all other elements.
3. These Explanatory Notes shall form part of this List A.
1. Sector : All sectors
Subsector: -
Industry Classification : -
Level of Government : All levels
Type of Obligation : National Treatment. Most-Favoured-Nation Treatment. Senior Management and Board of Directors. Prohibition of Performance Requirements
Description of Measure :
Establishment of Domestic Corporation
(a) Number of incorporators (1) shall be natural and/or juridical persons, singly or jointly with others but not more than 15, all of legal age; and
(b) Corporate Secretary shall be a citizen and resident of the Philippines.
Participation of foreign investors in entities engaged in partially nationalized activities and public utilities
For public utility enterprises or corporations engaging in partially nationalized activities, the President and all the executive and managing officers of such corporation or association must be citizens of the Philippines. The participation of foreign investors in the governing body of said enterprise shall be limited to their proportionate share in its capital.
Establishment of Cooperative
No foreign equity is allowed.
Domestic and Export Enterprise
Micro and small domestic market enterprises are reserved to Philippine nationals, however, the Philippines may allow up to a maximum of 40 per cent foreign equity in micro and small domestic market enterprises, subject to compliance with requirements, terms and conditions.
A non-Philippine national not otherwise disqualified by law may do business or invest in a domestic enterprise up to 100 per cent of its capital, provided:
(a) it is investing in a domestic market enterprise in areas outside the Foreign Investment Negative List under the Foreign Invesiments Act of 1991; or
(b) itis investing in an export enterprise whose products and services do not fall within Lists Aand B of the Foreign Investment Negative List under the Foreign Investments Act of 1991.
Provided, further, that, as required by existing laws, the country or state of the applicant must also allow Filipino citizens and corporations to do business therein.
Note:
"Philippine national" shall mean a citizen of the Philippines or a domestic partnership or association wholly owned by citizens of the Philippines; or a corporation organized under the laws of the Philippines of which at least 60 per cent of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines; or a corporation organized abroad and registered as doing business in the Philippines under the Revised Corporation Code of which 100 per cent of the capital stock outstanding and entitled to vote is wholly owned by Filipinos or a trustee of funds for pension or other employee retirement or separation benefits, where the trustee is a Philippine national and at least 60 per cent of the fund will accrue to the benefit of the Philippine nationals: Provided, that where a corporation and its non-Filipino stockholders own stocks in a Securities and Exchange Commission (SEC) registered enterprise, at least 60 per cent of the capital stocks outstanding and entitled to vote of both corporations must be owned and held by citizens of the Philippines and at least 60 per cent of the members of the Board of Directors of both corporations must be citizens of the Philippines, in order that the corporations shall be considered a Philippine national.
Individuals or entities that do not meet the aforementioned qualifications are considered as "non-Philippine nationals".
"Export enterprise" shall mean an enterprise wherein a manufacturer, processor or service (including tourism) enterprise exports 60 per cent or more of its output, or wherein a trader purchases products domestically and exports 60 per cent or more of such purchases.
Designation of Resident Agent (2)
A foreign corporation shall be required to file a written power of attorney designating either an individual residing in the Philippines or a domestic corporation lawfully transacting business in the Philippines, on whom any summons and other legal processes may be served.
Branches and Regional Operating Headquarters
Foreign Enterprises may establish Regional Operating Headquarters provided they shall register the same with the appropriate government agency and shall be subject to relevant rules and regulations.
Source of Measure :
- The 1987 Philippine Constitution
- Republic Act (R.A.) No. 11232, the Revised Corporation Code of the Philippines
- Commonwealth Act No. 108, An Act fo Punish Acts of Evasion of Laws on the Nationalization of Certain Rights, Franchises or Privileges, as amended by Presidential Decree No. 715, otherwise known as "The Anti-Dummy Law", as may be amended
- RA No. 11647, An Act Promoting Foreign Investments, Amending Thereby R.A. No. 7042, Otherwise Known As The âForeign Invesiments Act of 1997,â as Amended, and for Other Purposes
- RA No. 11659, An Act Amending Commonwealth Act No. 146, Otherwise Known as the Public Service Aci, as Amended
- RA. No. 9520, the Philippine Cooperative Code of 2008
- RA. No. 6977, the Magna Carta for Micro, Smail and Medium Enterprises (MSMEs), as amended by R.A. No. 8289 and R.A. No. 9501
- RA No. 9178, the Barangay Micro Business Enterprises Act of 2002
- RA. No. 8756, An Act Providing for the Terms, Conditions and Licensing Requirements of Regional or Area Headquarters, Regional Operating Headquarters, and Regional Warehouses of Multinational Companies, Amending for the Purposes Certain Provisions of Executive Order No. 226, the Omnibus Investments Code of 1987
- Securities and Exchange Commission Issuances and Opinions
2. Sector: All sectors
Subsector: -
Industry Classification :-
Level of Government: All levels
Type of Obligation: National Treatment
Description of Measure:
The Philippines protects the nationâs marine wealth in its archipelagic waters, territorial sea and exclusive economic zone, and reserves its use and enjoyment exclusively to Filipino citizens.
Small-scale utilization of natural resources is allowed only to Filipino citizens, as well as cooperative fish farming, with priority to subsistence fishermen and fish workers in rivers, lakes, bays and lagoons.
Source of Measure:
The 1987 Philippine Constitution
- R.A. No. 7160, the Local Government Code of 1991
- RA No. 7942, the Philippine Mining Act of 1995
- RA. No. 7076, the Peopleâs Small-Scale Mining Act of 1991
- RA. No. 8550, the Philippine Fisheries Code of 1998, as amended by R.A. No. 10654, An Act to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing, Amending Republic Act No. 8550, Otherwise Known as "The Philippine Fisheries Code of 1998," and for Other Purposes
- Presidential Decree No. 705, s. 1975, the Revised Forestry Code of the Philippines
3. Sector: Fisheries and Aquaculture
Subsector: -
Industry Classification: ISIC 050 Fishing, aquaculture and service activities incidental to fishing
Level of Government: All levels
Type of Obligation: National Treatment. Most-Favoured-Nation Treatment
Description of Measure:
The use and exploitation of the fishery and aquatic resources in Philippine waters shall be reserved exclusively to Filipinos.
Municipal Fishing