Metro Manila (CNN Philippines, March 11) – The House of Representatives on Wednesday approved on third and final reading a bill that would make it easier for foreign companies to enter into the country’s retail sector.
Voting 156 in the affirmative, 30 in the negative, and no abstentions, the chamber passed the House Bill No. 58 which will amend the Republic Act No. 8762 or the Retail Trade Liberalization Act.
“These amendments would open up the Philippine retail industry which would result in greater variety of products, more competitive local players, inflow of new technology, and more importantly, more jobs for Filipinos,” said House Committee on Trade and Industry chairperson Rep. Weslie Gatchalian in his explanatory note.
The measure is seeking to relax barriers for foreign investors. This includes setting up a minimum paid-up capital of US$200,000 as compared to the current US$2.5 million requirement.
The bill will remove the requirement under the present law for foreign investors to acquire shares of stocks of local retailers.
It also removes the requirement for public offering of shares of stock by foreign owned retail enterprises.
The bill eliminates as well the required net worth, number of retailing branches, and retailing track record conditions for foreign retailers to engage in retail trade in the country.
Once enacted into law, the measure will reduce the required locally manufactured products carried by foreign retailers from 30-percent to 10-percent of the aggregate cost of their stock inventory.
Counterpart measures in the Senate are still pending at committee level.
