Module 1

INTRODUCTORY LAWS
ATT Y. MARIS ANGELICA C. AYUYAO
One La Salle Prayer
Let me be the change I want to see
To do with strength and wisdom
All that needs to be done.
And become the hope that I can be.
Set me free from my fears and hesitations
Grant me courage and humility
Fill me with spirit to face the challenge
And start the change I long to see.
Today I start the change I want to see.
Even if I’m not the light
I can be the spark
In faith, service, and communion.
Let us start the change we want to see.
The change that begins in me.
Live Jesus in our hearts forever!
Meaning of Law in General
Law, in its widest and most
comprehensive sense, means rule of
action or any system of uniformity.
Definition and Characteristics of Law,
According to Sanchez Roman
•Rule of Conduct. If there is no law in the society, there will be chaos or
disorder. A society without law can be likened to a forest full of very
dangerous animals ready to kill us. Because there is law, order is
established as people conduct themselves accordingly.
•Just and Obligatory. Laws must be applied to people “similarly situated”.
The penalty imposed by law must be commensurate to the wrongful act
committed by a person. On the other hand, the law is obligatory because
of the penalty or legal consequence it provides.
Definition and Characteristics of Law,
According to Sanchez Roman
•Promulgated by Legitimate Authority. It is necessary that the person
who creates the law must have the power or authority to do so. The
Constitution of the Philippines vests this power to the Congress of the
Philippines except to the extent reserved to the people by the provision
on initiative and referendum.
•For Common Observance and benefits. Laws are promulgated for the
welfare of the people. This is based on the Latin maxim “Salus Populi est
Suprema Lex” (The welfare of the people is the supreme law). No law
therefore shall be passed putting the life, liberty or property of the people
in danger.
Classification of Law
Divine Law
It is legislated and promulgated by God. It is the
law of religion and faith which concerns itself
with the concept of sin (as contrasted with crime
and salvation). Ex. The Ten Commandments
Human Law
It is promulgated by man to regulate human
relations
Classification of Law
•International Law – governs the relations •Civil Law – regulates the relations of
among nations or states individuals with other individuals for purely
•Constitutional Law – governs the relations private ends.
between human beings, as citizens of a state, •Mercantile Law – regulates special relations
and the governing power produced by commercial transactions
•Administrative Law – governs the relations •Procedural Law – provides for the mean by
among the officials and employees of the which private rights may be enforced
government
•Criminal Law – guarantees the coercive
power of the law so that it will be obeyed
•Religious Law – regulates the practice of
religion

General or Individual or
Public law Private Law
Sources of Law
The Constitution

Legislation
Administrative Rules
and Regulations
Judicial Decisions or
Jurisprudence

Customs

Other sources
Three Branches of the Government
1. The Executive Power (Power of Executive Branch) or the power to
execute, enforce, or implement the law. This power is vested to the
President of the Philippines.
The different departments such as Department of Tourism, Department of
Transportation, Department of Foreign Affairs, Department of Justice,
Department of Interior and Local Government, and other departments are
under the Executive branch.
Three Branches of the Government
2. The Legislative Power (Power of the Legislative Branch) or the power to make, revise, repeal, or
amend the law. This power is vested to the Congress of the Philippines which is composed of the
Senate and the House of Representatives, except to the extent reserved to the people by the
provision on initiative and referendum.
The law passed by the congress is called Statute. A Bill, on the other hand, is not a law but just a
proposal or a draft.
In the local government unit, we have Ordinance which is a law that is passed by the sangguniang
panlalawigan for the province; the sangguniang panlungsod for the city; the sangguniang bayan for the
municipality and the sangguniang barangay for the barangay. Unlike Statute which is generally
applicable in the entire country, an ordinance is only applicable within the territorial jurisdiction of
the local government unit concerened. Local ordinances are inferior in status and subordinate to
the laws of the state or the statute. An ordinance that is in conflict with the statute is invalid.
Three Branches of the Government
3. The Judicial Power (Power of the Judicial Branch) is not only a power but also the duty of the
courts of justice to settle actual controversies involving rights which are legally demandable and to
determine whether or not there has been a grave abuse of discretion amounting to lack or excess of
jurisdiction on the part of the government or any agency or instrumentality thereof. To this branch
belongs the power to interpret the law.
The different courts in the Philippines, such as the Municipal Trial Court, Regional Trial Court,
Court of Appeals, Sandiganbayan, Court of Tax Appeals and other courts are under the judicial
branch. The Supreme Court is the highest court of the land with fifteen justices, the head is called
the Chief Justice while the fourteen are associate justices.
Inherent Powers of the State
Eminent domain - it means the power of the government to
take private property for public purpose or public use
provided that the government will pay just compensation.
Inherent Powers of the State
Police Power – or the power of the government to enact laws in relation
to persons and property as may promote public health, public morals,
public safety and the general welfare of each inhabitant provided that
they are not contrary to the constitution. Police power does not pertain to
the power of the Philippine National Police.
Inherent Powers of the State
Taxation power – or the power vested in the legislature to impose
burdens or charges upon persons and property for the purpose of raising
revenue for public purpose.
Note that when we say inherent this means that the state automatically
possessed these powers. In other words, these powers are not granted by
any law to the state.
It is worth to emphasize that the above powers although inherent are still
subject to the limitations imposed by the Constitution.
 Fundamental Laws Affecting
Tourism and Hospitality
Concept of Tourism Law
Tourism is defined as the custom or practice of traveling for
pleasure, as well as the promotion by the establishment of
countries to attract tourist.
The World Tourism Organization defines tourism as the
activities of persons traveling to and staying in places
outside their usual environment for not more than one (1)
consecutive year for leisure, business, and other purposes.
Tourism Laws vs. Hospitality Laws

On the other hand, hospitality laws

The laws on tourism may be deal with food service, travel and
defined as a combination of lodging industries. It is applicable
to the different nuances or
state, local, and international
restaurant, hotel, country club, bar,
laws that control the different spa, and related industries. It
facets and functions of the embraces an extensive collection of
travel industry. laws like contracts, torts and
damages, and a lot more.
The Philippine Constitution
• The Commonwealth Constitution of 1935 which was operative
The
Commonwealth
until 1973 Constitution took effect;
Constitution

• The 1973 Constitution under the regime of former President

1973
Constitution Ferdinand E. Marcos;

• The Freedom Constitution proclaimed by former President Corazon

Freedom C. Aquino as a result of the people power revolution in 1986; and
Constitution

1987
• The present 1987 Constitution.
Constitution
Constitutional Provisions Relative
to Accommodation and Tourism
Establishments
Constitution
Constitution is the basic and highest law of the land to which all other
laws must conform and to which all persons, including the highest
officials of the land, must defer or comply. No act shall be valid, however
noble its intentions, if it conflicts with the constitution. The constitution
must ever remain supreme. All must bow to the mandate of this law.
The fundamental conception in other words is that it is the supreme law
to which all other laws must conform and in accordance with which all
private rights must be determined and all public authority administered.
Doctrine of Constitutional
Supremacy
Under the doctrine of constitutional supremacy, if a law or
contract violates any norm of the constitution, that law or
contract, whether promulgated by the legislative or by the
executive branch, or entered into by private persons for private
purposes, is null and void (not valid) and without any force and
effect. Thus, since the Constitution is the fundamental,
paramount, and supreme law of the nation, it is deemed
written in every statute and contract.
Doctrine of Constitutional
Supremacy
Under the doctrine of constitutional supremacy, if a law or
contract violates any norm of the constitution, that law or
contract, whether promulgated by the legislative or by the
executive branch, or entered into by private persons for private
purposes, is null and void (not valid) and without any force and
effect. Thus, since the Constitution is the fundamental,
paramount, and supreme law of the nation, it is deemed
written in every statute and contract.
Article III – Bill of Rights
The Bill of Rights governs the relationship between the individual and
the state. Its concern is neither the relation between individuals nor
between a private individual and other individuals. What the Bill of
Rights does is to declare some forbidden zones in the private sphere
inaccessible to any power holder .
The Bill of Rights is not meant to be invoked against acts of private
individuals. Private actions, no matter how egregious, cannot violate the
equal protection guarantee.
Article III – Bill of Rights
The Bill of Rights are the limitation on the powers of the government.
Hence, it cannot be invoked if one who violated the same is a private
individual or entity. The provisions of the Bill of Rights can only be used
or invoked if the one who violated it is the government.
The purpose of the Bill of Rights is to protect the people against arbitrary
and discriminatory use of political power. This bundle of rights
guarantees the preservation of our natural rights which include personal
liberty and security against invasion by the government or any of its
branches or instrumentalities.
Yrasuegi vs. Phil. Airlines
G.R. No. 168081, October 17, 2008

Facts: Armando G. Yrasuegui (Armando) was a former international flight steward of Philippine
Airlines, Inc. (PAL). He stands five feet and eight inches (5’8") with a large body frame. The proper
weight for a man of his height and body structure is from 147 to 166 pounds, the ideal weight being
166 pounds, as mandated by the Cabin and Crew Administration Manual of PAL.
At the time he was hired, Armando met the weight requirement. However, in the course of his
employment he weighed 205 pounds which is beyond the 166 pounds limit. He was given a
chance to lose weight, however, he gained, instead of losing, weight. He was overweight at 215
pounds.
Thereafter Armando was terminated for violating the company rules. He filed an illegal dismissal
case against PAL. One of his arguments is that the company rules are discriminatory, it is not fair.
In other words, Armando is invoking Section 1 of the Bill of Rights of the Constitution particularly
the equal protection clause.
Yrasuegi vs. Phil. Airlines
G.R. No. 168081, October 17, 2008

Issue: Is Armando correct in invoking Section 1 of the Bill of Rights

against Philippine Airlines Inc. which is a private entity?
Ruling: Armando is not correct in invoking the Bill of Rights. The Bill of
Rights is not meant to be invoked against acts of private individuals (like
PAL, a private entity). The equal protection erects no shield against
private conduct however discriminatory or wrongful. Private actions, no
matter how egregious, cannot violate the equal protection guarantee.
Article 3, Section 1
Article 3, Section 1. No person shall be deprived of his life, liberty,
or property without due process of law, nor, shall any person be
denied the equal protection of the laws.
There are two rights that are guaranteed by the above
provision, namely:
▪The Right to Due Process; and
▪The Right to Equal Protection of the Law.
Due Process of Law
Due process of law means a law that hears before it condemns; which proceeds upon
inquiry, and renders judgment only after trial. Due process of law contemplates notice
and opportunity to be heard before judgment is rendered, affecting one’s person or
property.

Cleary, to say that due process is observed -

▪There must be notice; and

▪There must be hearing or the opportunity to be heard before judgment is rendered.

In the absence of any of the foregoing requirements, there will be no due process.
Therefore, if there is no due process, the government cannot take away the life, liberty,
or property of any person.
Two Kinds of Person in Law
▪ Natural Person (Example: Human Being)
▪ Juridical Person/Artificial being (Example: Corporation such as
Lyceum of the Philippines Inc., San Miguel Corporation, etc.)
Three Areas Protected by Section 1
Life of human beings, be they citizens of the Philippines or
aliens, natural persons or juridical persons is protected by the
Bill of Rights. As a rule the government cannot take away the
life of the person without due process.
Three Areas Protected by Section 1
Liberty is freedom to do right and never wrong; it is ever
guided by reason and the upright and honorable conscience of
the individual. Liberty does not only refer to physical freedom,
but it may also include rights of a citizen to use his/her
faculties in all lawful ways; to live and work where he/she
wills; to earn his/her livelihood by any lawful calling; to
pursue any vocation.
Three Areas Protected by Section 1
Property may refer to personal or real, immovable or movable objects which can
be taken or disposed of, like lands, buildings, cars, jewelries. Section 1 clearly
protects these properties against any unlawful taking by the government. Thus,
a parcel of land owned by private person cannot be taken by the government
without due process of law.
Employment is considered as a property. In the case of Gonzales versus NLRC,
G.R. No. 125735 on August 26, 1999, the Supreme Court enunciated that
“Employment is not merely a contractual relationship; it has assumed the nature
of property right. One’s employment, profession, trade or calling is a property
right within the protection of the Constitutional guaranty of due process of law”
Equal Protection Clause
The second sentence of Article 3 Section 1 is called the Equal Protection
Clause. The equal protection clause simply means people of the same
class shall be treated alike, under like circumstances and conditions both
as to the privileges conferred and liabilities enforced. It does not mean
absolute equality, for otherwise there would be injustice.
Article 3, Section 3
(1)The privacy of communication and correspondence shall be
inviolable except upon lawful order of the court, or when
public safety or order requires otherwise, as prescribed by
law.
(2)Any evidence obtained in violation of this or the preceding
section shall be inadmissible for any purpose in any
proceeding.
Essence of Right to Privacy
The very essence of this right is simply the right to be let alone. Because
of this, the government or any of its agencies as a rule cannot intrude,
interfere, or even pry with the private affairs of an individual. The right
to privacy is protected by the many provisions in the constitution such as
Article 3 Section 2, on warrant of arrest and search warrant; Article 3
Section 6 on the right to travel; Articles 3 Section 8 on the right to form
union or organization.
The Privacy of Communication or
Correspondence
Article 3 Section 3 guarantees the right to privacy of communication. Any communication
given in confidence or privately to the other cannot be intercepted or intruded by the
government or any of its agencies. Speeches delivered in public places, mass media and the
like are not covered by the privacy of communication simply because the same was made in
the public.
Correspondence or communication made in writing is treated with confidentiality. As a
general rule, letters cannot be taken by the government or any of its agents.
In hotels, for example, all pieces of information that are written in the registration book may
not be inquired into by police officer because they are strictly confidential. However, if there
is a court order such as search warrant then it can be taken and inquired into by the police
officer. The right to privacy may nevertheless succumb to an opposing or overriding state
interest deemed legitimate and compelling.
Doctrine of the Fruit of the
Poisonous Tree
The second paragraph of Article 3, Section 3 is the so-called
“Doctrine of the Fruit of the Poisonous Tree”.
This means that any evidence obtained illegally cannot be used
as evidence therefore is considered to be inadmissible in any
proceedings.
RA 4200- Anti-Wiretapping Law
In line with the right to privacy of communication, the Congress passed
Republic Act 4200 otherwise known as the Anti-Wiretapping Law. Under
this law, it shall be unlawful for any person, not being authorized by all
the parties to any private communication or spoken word, to tap any
wire or cable, or by using any other device or arrangement, to secretly
overhear, intercept, or record such communication or spoken word by
using a device commonly known as a Dictaphone or dictograph or
walkie-talkie or tape recorder.
Under the Anti-wiretapping law, private citizens or government officials
or employees may be sued for the violation of this law.
RA 9995 - Anti-Photo and Video
Voyeurism Act of 2009
Sometime in the year 2009, a sex video of some celebrities was shared
online and later distributed through DVD. In response, the Congress
passed the Republic Act 9995 or the Anti-Photo and Video Voyeurism Act
of 2009.
The law prohibits recording videos or taking photos of a sexual act, the
male or female genitalia, and of the female breast, among others, without
consent of the persons featured in the material.
Prohibited Acts Under RA 9995
Under this law, it shall be unlawful for any person:

a. To take photo or video coverage of a person or group of persons performing sexual act or any similar activity or to capture
an image of the private area of a person/s such as the naked or undergarment clad genitals, public area, buttocks or female
breast without the consent of the person/s involved and under circumstances in which the person/s has/have a reasonable
expectation of privacy;

b. To copy or reproduce, or to cause to be copied or reproduced, such photo or video or recording of sexual act or any similar
activity with or without consideration;

c. To sell or distribute, or cause to be sold or distributed, such photo or video or recording of sexual act, whether it be the
original copy or reproduction thereof; or

d. To publish or broadcast, or cause to be published or broadcast, whether in print or broadcast media, or show or exhibit the
photo or video coverage or recordings of such sexual act or any similar activity through VCD/DVD, internet, cellular phones
and other similar means or device.

Note that paragraphs (b), (c) and (d) are applicable even if the person or persons featured in the photo or video consented to
the taking of photo or recording of sexual act.
RA 10173 - the Data Privacy Act
of 2012
One important piece of legislation that is applicable also in the accommodation and
tourism establishments is the enactment of the Data Privacy Act of 2012. This law
ensures that personal information in information and communications systems in the
government and in the private sector are secured and protected.

The data privacy act applies to individual or juridical entity that processes or gathers
personal information.

The data privacy act paves the way for a sustainable free flow of information where
consumers feel safe to give out their personal data, and government and businesses are
accountable for the responsible use of the information they collect.
RA 10173 - the Data Privacy Act
of 2012
The data subject is entitled to:

a. Be informed whether personal information pertaining to him or her shall be, are being or have been
processed;

b. The right to object to the collection of data;

c. The right to access personal data;

d. The right to rectification. The data subject has the right to dispute the inaccuracy or error in the
personal data and have the personal information controller correct it immediately and according.

e. The right to erasure or blocking. The data subject shall have the right to suspend, withdraw or order
the blocking, removal or destruction of his or her personal data from the personal information
controller’s filing system.
RA 10173 – Prohibited Acts Under
the Data Privacy Act of 2012
1. Unauthorized Processing of Personal Information and Sensitive Personal Information.
2. Accessing Personal Information and Sensitive Personal Information Due to Negligence.
3. Improper Disposal of Personal Information and Sensitive Personal Information.
4.Processing of Personal Information and Sensitive Personal Information for Unauthorized Purposes.
5. Unauthorized Access or Intentional Breach.
6. Malicious Disclosure. Any personal information controller or personal information processor, or any of its
officials, employees or agents, who, with malice or in bad faith, discloses unwarranted or false information
relative to any personal information or sensitive personal information obtained by him or her.
7. Unauthorized Disclosure.
Violations of the Data Privacy Act can result in imprisonment of up to six years or a fine of up to P5 million.
Article 3, Section 6.
Article 3, Section 6. The liberty of abode and of changing the same within the limits prescribed by
law shall not be impaired except upon lawful order of the court. Neither shall the right to travel be
impaired except in the interest of national security, public safety, or public health, as may be
provided by law.
The said provision protects two rights, namely:
▪The Liberty of Abode (home/residence); and
▪The Right to Travel.
Liberty of Abode
The constitution guarantees the right of the person to establish his own residence or home. In the
same manner, any person can also change his residence or dwelling from one place to another.

Exception to the Liberty of Abode

However, the Right to Abode must be within the limits prescribed by law; meaning, if there is a
law that disallows any structure in a certain place because of good reason such as public safety,
then this right may be impaired.
The Right to Travel
Travelling from one place to another is also a guaranteed right. However,
there are cases wherein this right can be impaired or restricted by the
government. Under the Bill of Rights, the Right to Travel can be impaired
if any of the following circumstances are present:
1. Interest of National Security;
2. Public Safety; and
3. Public Health.
Article 3, Section 8.
Article 3, Section 8. The right of the people, including those employed in
the public and private sectors, to form unions, associations, or societies
for purposes not contrary to law shall not be abridged.
This refers to the right of form unions, associations, or societies.
Right to Form Union of Employees
in the Government Sector
The right to self-organization is not denied to government
employees. It is clear from the above provision that employees
in the public sector have the right to form union. Provided, the
purpose or objective of the union, association, or society formed
must should not be contrary to law.
Right to Form Union of Employees
in the Private Sector
On the other hand, the right to form union in the private sector is
not only constitutional but also statutory. A company cannot
prevent its employees to form a union nor shall terminate an
employee simply because said employee formed a union.
Strike means temporary stoppage of work through concerted action
of employees as a result of a labor or industrial dispute. The right to
strike is available to workers in the private sector provided that the
strike must be in accordance with law.
Supervisory Employee’s Right to
Form Union
On the other hand supervisory employees may join, assist or form a
separate union of their own but they are not eligible for membership in
the collective bargaining unit of the rank-and-file employees.
Managerial employees, however, are not allowed to form union.
Article XII- National Economy and
Patrimony
Section 10. The Congress shall, upon recommendation of the economic and planning
agency, when the national interest dictates, reserve to citizens of the Philippines or to
corporations or associations at least sixty per centum of whose capital is owned by such
citizens, or such higher percentage as Congress may prescribe, certain areas of
investments. The Congress shall enact measures that will encourage the formation and
operation of enterprises whose capital is wholly owned by Filipinos.
In the grant of rights, privileges, and concessions covering the national economy and
patrimony, the State shall give preference to qualified Filipinos.
The State shall regulate and exercise authority over foreign investments within its
national jurisdiction and in accordance with its national goals and priorities.
Article XII- National Economy and
Patrimony
National Patrimony
In its plain and ordinary meaning, the term patrimony pertains to heritage. When the Constitution
speaks of national patrimony, it refers not only to the natural resources of the Philippines, as the
Constitution could have very well used the term natural resources, but also to the cultural heritage
of the Filipinos.
Filipino First Policy
The second paragraph of the above provision orders the state to give preference to qualified
Filipinos in the grant of right and privileges provided that the Filipino is qualified even if a
foreigner is more qualified.
Manila Prince Hotel vs. GSIS
G.R. No. 168081, October 17, 2008 G.R. No. 122156. February 3, 1997

Facts: Pursuant to the privatization program of the Philippine Government under

Proclamation No. 50 dated 8 December 1986, the Government Service Insurance System
(GSIS) decided to sell through public bidding 30% to 51% of the issued and outstanding
shares of Manila Hotel Corporation (MHC). In a close bidding held on 18 September 1995,
only two (2) bidders participated; Manila Prince Hotel Corporation, a Filipino corporation,
and Renong Berhad, a Malaysian firm, with ITT-Sheraton as its hotel operator. Manila Prince
Hotel Corporation offered to buy 51% of the MHC or 15,300,000 shares at P41.58 per share
while Renong Berhad bids the same number of shares at P44.00 per share or P2.42 more than
the bid of Manila Prince Hotel.
Prior to the declaration of Renong Berhad as the winning bidder, Manila Prince Hotel filed a
petition before the Supreme Court to prohibit the award of the 51% shares to Renong Berhad
contending that Manila Hotel is a National Patrimony, and therefore preference should be
given to qualified Filipinos such as the Manila Prince Hotel.
Manila Prince Hotel vs. GSIS
G.R. No. 168081, October 17, 2008 G.R. No. 122156. February 3, 1997

Issue: Should the 51% shares of Manila Hotel be awarded to Renong Berhad, a Malaysian
firm?
Ruling: The Supreme Court held that it should not be awarded to Renong Berhad. When
the Constitution speaks of national patrimony, it refers not only to the natural resources
of the Philippines, but it also includes Cultural Heritage such as the Manila Hotel.
Under the Constitution, in the grant of rights, privileges, and concessions covering the
national economy and patrimony, the State shall give preference to qualified Filipinos.
Manila Hotel being part of national patrimony, it must therefore be controlled preferably
by Filipinos or a corporation or association with at least 60% of its capital must be owned
by Filipino citizen. To award the 51% shares of Manila Hotel to Malaysian firm despite
the existence of a qualified Filipino bidder will violate the Constitution.
Reasons Why Manila Hotel is part
of National Patrimony
Manila Hotel has become a landmark - a living testimonial of Philippine heritage. While
it was restrictively an American hotel when it first opened in 1912, it immediately
evolved to be truly Filipino.

▪It was called the Cultural Center of the 1930’s. It was the site of the festivities during the
inauguration of the Philippine Commonwealth.

▪Dubbed as the Official Guest House of the Philippine Government, it plays host to
dignitaries and official visitors who are accorded the traditional Philippine hospitality.

▪During World War II the hotel was converted by the Japanese Military Administration
into a military headquarters.
Reasons Why Manila Hotel is part
of National Patrimony
▪When the American forces returned to recapture Manila, the hotel was selected by the
Japanese together with Intramuros as the two (2) places for their final stand.

▪Thereafter, in the 1950’s and 1960’s, the hotel became the center of political activities,
playing host to almost every political convention. In 1970, the hotel reopened after a
renovation and reaped numerous international recognitions, an acknowledgment of the
Filipino talent and ingenuity.

▪ In 1986, the hotel was the site of a failed coup d’état where an aspirant for vice-
president was “proclaimed” President of the Philippine Republic.
Foreign Investments in the
Philippines
Under the Foreign Investment Act of 1991, foreign investment shall be
encouraged in enterprises that significantly expand livelihood and
employment opportunities for the Filipino.
As a general rule, there are no restrictions on extent of foreign ownership
of export enterprises. In domestic market enterprises, foreigners can
invest as much as one hundred percent (100%) equity except in areas
included in the negative list.
Negative List
Negative List shall mean a list of areas of economic activity whose foreign ownership is
limited to a maximum of forty percent (40%) of the equity capital of the enterprises
engaged therein.
Examples:
1. Sauna and steam bathhouses, massage clinics and other like activities, except
wellness centre, foreign equity is allowed up to forty percent (40%)
2. All forms of gambling except those covered by investment agreements with
PAGCOR
Investments that are Completely
Not Allowed to Foreigners
There are investments in the Philippines where foreigners are not
allowed to engage or invest with. Among them are:
1. Mass media except recording
2. Practice of profession
3. Operation of private detective, watchmen, security guard agencies
4. Manufacture of fire crackers and other pyrotechnic devices
5. Cooperatives
Allowable Foreign Equity
Up to thirty percent (30%) Foreign Equity

Foreigners may engaged into advertising provided their equity is only 30%.

Up to twenty five percent (25%) Foreign Equity

Foreigners may engaged into the following investments provided their equity is only up
to 25%. To wit:

▪Private recruitment, whether for local or overseas employment

▪Contracts for the construction of defense-related structures.