AN ACT ALLOWING AN INCREASE IN FOREIGN EQUITY PARTICIPATION IN PREFERRED AREAS OF INVESTMENT AND FOR OTHER PURPOSES

WHEREAS, it is the policy of the State to encourage and
promote foreign investments in the various economic activities of the country
provided their participation is consistent with national goals and policies;

WHEREAS, the accelerated entry of foreign investments at
this time of economic difficulty will contribute to the achievement of economic
goals;

WHEREAS, there is an increased interest on the part of
foreign investors to enter into joint ventures with Philippine partners
particularly in preferred areas of investments as defined in the Omnibus
Investments Code, as amended;

WHEREAS, it is in the best interest of the State to relax
the nationality requirements provided in the said Code for a limited period in
order to facilitate the entry of foreign investments;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree:

SECTION 1. Notwithstanding; the provisions of Article 34(1)
of Presidential Decree No. 1789, as amended, otherwise known as the Omnibus
Investments Code, the nationality requirement of at least 60% Philippine
nationals for non-pioneer industries to be entitled to registration under Book
One of the Omnibus Investments Code shall be suspended for a period of one (1)
year; Provided, that foreign investors fulfill the other requirements
provided in the aforementioned article, particularly Article 34(1) (b), and such
other conditions provided in Book One of the Omnibus Investments Code; and
Provided, further, that foreign investors will not engage in activities reserved
by the Constitution-and existing laws to Philippine nationals and corporations
and other juridical entities owned and controlled by Philippine nationals.

SEC. 2. Existing non-pioneer enterprises registered under
Book One of the Omnibus Investments Code may increase their foreign equity in
accordance with and subject to the conditions of the preceding Section.

SEC. 3. This Decree shall take effect immediately and shall
remain in force for a period of one (1) year from effectivity hereof, provided
that upon expiration of the one-year period, the suspended provisions of the
Omnibus Investments Code shall resume to be in force and effect without in any
way affecting the status of investments approved during the suspension of the
provision.

Done in the City of Manila, this 4th day of December, in the year of Our
Lord, nineteen hundred and eighty-three.