January 10, 2022 | 00h00
MANILA, Philippines – Passing a law to make it easier for foreign retailers to enter will not only bring new capital, but also create livelihood opportunities the economy needs to recover from the pandemic, the finance ministry says .
DOF Secretary Carlos Dominguez III said yesterday that measures to open up the economy to foreign participation would improve the country’s chances of recouping the losses it suffered at the height of the lockdowns.
Dominguez said the signing of Republic Act (RA) 11595 encourages foreign retailers to view the Philippines as an investment location for their expanding branches.
RA 11595, approved by President Duterte in December, amended RA 8762 or the Retail Trade Liberalization Act of 2000. RA 11595 reduces the capital requirement for foreign retailers to 25 million pesos from 2.5 million pesos. million RA 8762 (at least 125 million pesos) to entice global brands to locate their stores here.
The law also simplifies the qualification requirements for foreign retailers by removing requirements on net worth, number of retail branches and background.
With operational bottlenecks lifted, the government is hoping international businesses will move here to benefit an economy pressed to grow by seven to nine percent this year.
Dominguez said changes to the retail law allow small businesses to compete for buyers, preventing companies from dominating the market simply because they can afford to pay minimum capital.
“This will increase competition between businesses, which will benefit our consumers by offering more choice at lower and more competitive prices,” said Dominguez.
The CFO added that RA 11595 benefits local manufacturers by encouraging, but not requiring, foreign retailers to maintain an inventory of products made in the Philippines.
âThis will help protect our country’s small local manufacturers and encourage retailers to provide opportunities for locally produced products, although they are owned by foreign interests. We hope this will also help generate much-needed jobs and income Filipinos, âsaid Dominguez.
Going forward, Dominguez said two measures should also be approved to complement the investment and job creation impact of RA 11595. These reforms are: 1991.
In December, the Senate and House of Representatives ratified a bicameral commission report on FIA reviews and forwarded it to the Office of the President for consideration.
On the other hand, the Senate and the House will meet as a bicameral conference committee to deliberate on their contradictory provisions in the amendments to the PSA.