Metro Manila (CNN Philippines, May 19) — A measure easing requirements for foreign retailers by lowering the required paid-up capital hurdled the Senate on Wednesday.
Senate Bill 1840 – which seeks to amend the Retail Trade Liberalization Act of 2000 – was passed on third and final reading, with 20 lawmakers in favor and no negative vote or abstention.
The measure is seen to aid the country’s economic recovery amid the COVID-19 pandemic by inviting more foreign enterprises to invest in the Philippine retail market.
If signed into law, the required paid-up capital will be lowered to at least ₱50 million, or a little over $1 million, from the current $2.5 million, or nearly ₱120 million.
The original proposal was only set at a minimum of around ₱15 million. During the period of amendments, however, Senator Koko Pimentel – who sponsored the bill – agreed that this be increased upon Senator Ralph Recto’s suggestion.
“We are liberalizing it but not too low so that the competition would be at the medium level, plus we want to attract quality,” Senator Ralph Recto said. “That’s why we suggested that the paid-up capital should be at least ₱50 million, but then they can put up two stores at ₱25 million each.”
Under the current rules, foreign retailers with more than one physical store are required a minimum paid-up capital of $830,000, or nearly ₱40 million.
President Rodrigo Duterte earlier called on Congress to immediately pass the bill, along with two other economic measures meant to fast-track pandemic recovery.
