1. What is the applicable legislation? The key legislation relating to foreign direct investment (FDI) in the Philippines includes: • Republic Act (RA) No. 7042, as amended by RA No. 11647, also known as the Foreign Investment Act 1991 (FIA), and the Implementing Rules and Regulations (IRR) of the FIA which is the principal legislation regulating foreign investments in the Philippines. The FIA is intended to regulate and promote the State’s policy of productive foreign investment in activities which significantly contribute to sustainable, inclusive, resilient, and innovative economic growth, productivity, global competitiveness, employment 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 with the protection of national security. RA No. 11647 is an amendment that aims to further this policy by allowing international investors to set up and fully own domestic enterprises in the Philippines • The 1987 Constitution of the Republic of the Philippines (Constitution), specifically Article XII (National Economy and Patrimony), which provides guidance on the grant of rights,