PHILIPPINES Trends and Developments Contributed by: Patricia A. O. Bunye, Aida Araceli G. Roxas-Rivera and Christianne Grace F. Salonga, Cruz Marcelo & Tenefrancia
vate partnerships, greenfield developments and long- term institutional investments that were previously constrained by ownership limitations. The liberalisation trend extends beyond infrastructure. The renewable energy sector has experienced a major transformation following policy clarifications allowing full foreign ownership of renewable energy projects. Historically, uncertainties surrounding constitutional restrictions on natural resource utilisation created practical barriers for foreign investors seeking to par - ticipate in renewable energy development. The Department of Justice issued DOJ Opinion No 21, Series of 2022, which clarified that solar, wind, hydro and biomass energy projects may be wholly foreign- owned, opening the sector to international develop - ers, infrastructure funds and institutional investors seeking opportunities in the energy transition. This reform is particularly significant given the Philippines’ substantial renewable energy potential and growing demand for sustainable power generation. The retail sector has likewise benefited from liberalisa - tion. Amendments to the Retail Trade Liberalization Act lowered capitalisation requirements for foreign- owned retail enterprises, reducing barriers to entry for international brands and facilitating greater compe - tition within the domestic consumer market. These reforms are expected to support continued growth in consumer spending while enhancing product avail - ability and market efficiency. Telecommunications has also undergone significant reform. Regulatory changes have facilitated greater foreign participation and increased competition in a sector that serves as a critical foundation for econom - ic development and digital transformation. Although sector-specific licensing and regulatory requirements remain applicable, recent reforms have contributed to increased investment in telecommunications infra - structure and digital connectivity. Complementing these ownership reforms is the government’s continuing effort to improve the fiscal attractiveness of the Philippines as an investment destination. The CREATE MORE Act represents an important development in the country’s investment
incentive framework by enhancing fiscal predictabil - ity, streamlining the administration of incentives, and strengthening support for export-oriented and high- value industries. The reforms are intended to provide investors with greater certainty regarding long-term incentive availability while improving the competitive - ness of the Philippines relative to other jurisdictions in the region. A significant policy development reinforcing the Philip - pines’ investment liberalisation agenda is the approval of the 2026 Strategic Investment Priority Plan (SIPP) under Memorandum Order No 47 issued in May 2026. As the government’s principal roadmap for the grant of fiscal incentives under the CREATE MORE Act, the revised SIPP reflects a more targeted approach towards attracting high-value and innovation-driven investments. The 2026 SIPP places particular empha - sis on sectors aligned with infrastructure moderni - sation, energy transition, advanced manufacturing, digital transformation, supply chain resilience, and emerging technologies. By identifying these areas as national investment priorities, the government has provided investors with greater visibility regard - ing the sectors expected to benefit from long-term policy support and incentive availability. The inclu - sion of advanced technology and digital infrastructure projects among the priority investment areas further underscores the Philippines’ intention to position itself as a competitive destination for future-oriented indus - tries and foreign direct investment. For investors, these reforms collectively signal a broader policy direction. Rather than treating foreign participation as an exception, the Philippines increas - ingly views foreign capital, expertise and technology as essential components of long-term economic development. Infrastructure and energy as key investment drivers Infrastructure and energy have emerged as two of the most important drivers of foreign investment activity in the Philippines. The government’s infrastructure mod - ernisation agenda continues to generate significant opportunities across transport, logistics, utilities and digital connectivity. Liberalisation measures under the PSA have expanded the range of sectors that may
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