Section 8Sec./Art. 8

Section 8 of R.A. No. 7042, as amended, is hereby further amended to read as follows:

"Section 8. List of Investment Areas Reserved to Philippine Nationals (Foreign Investment Negative List). - x x x

(a) x x x

(b) x x x

(1) which are defense-related activities, requiring prior clearance and authorization from Department of National Defense (DND) to engage in such activity, such as the manufacture, repair, storage and/or distribution of firearms, ammunition, lethal weapons, military ordinance, explosives, pyrotechnics and similar materials, unless such manufacturing or repair activity is specifically authorized by the Secretary of National Defense; or

(2) x x x

Excerpts as otherwise provided under Republic Act No. 8762, otherwise known as the Retail Trade Liberalization Act of 2000 and other relevant laws, micro and small domestic market enterprise with paid-in equity capital less than the equivalent of Two hundred thousand US dollar (US$200,000.00). are reserved to Philippine nationals: Provided, That if: (1) they involve advanced technology as determined by the Department of Science and Technology, or (2) they are endorsed as startup or startup enablers by the lead host agencies pursuant to Republic Act No. 11337, otherwise known as the Innovative Startup Act; or (3) a majority of their direct employees are Filipinos, but in no case shall the number of Filipino employees be less than fifteen (15), than a minimum paid-in capital of One hundred thousand US dollars (US$100,000.00) shall be allowed to non-Philippine nationals: Provided, further, That registered foreign enterprises employing foreign nationals and enjoying fiscal incentive shall implement an understudy or skills development program to ensure the transfer of technology or skills to Filipinos.

Compliance with this requirement shall be regularly monitored by the DOLE.

Nothing in this Act shall operate as a cause for termination of employees hired prior to the effectivity of this Act. In all cases, the provisions of Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines" and other applicable laws, rules and regulations issued by DOLE shall prevail.

Amendments to List B may be made upon recommendation of the Secretary of National Defense, or the Secretary of Health, endorses by the NEDA, or upon recommendation motu propio, of NEDA, approved by the President, and promulgated through the issuance of the Foreign Investment Negative List by Executive Order.

x x x

Amendments to the Foreign Investment Negative List shall not be made more often than once every two (2) years: Provided, That the NEDA, in consultation and cooperation with the BOI, DTI, SEC, DICT, IPAs and other pertinent government agencies, shall, every two (2) years, (i) review the Foreign Investment Negative List, and (ii) submit to Congress an analysis of foreign investment performance economic activities of the industries under the Foreign Investment Negative List and the reasons for the recommended amendments, if any: Provided, further, That NEDA shall recommend to Congress investment-related matters requiring necessary legislation."