MANILA, Philippines — The House Committee on Trade and Industry has approved the measure allowing foreign investments in the local retail sector.
Members of the panel passed on first reading the consolidated bills seeking to amend Republic Act 8762 (Retail Trade Liberalization Act) to allow foreign investors to engage in the retail trade business with a minimum paid-up capital of $200,000.
The measure has been endorsed to the plenary for deliberations for second and third readings.
It was immediately approved by the committee pursuant to House Rule 10, Section 48, which provides for one-day hearing and approval of bills approved on final reading during the previous Congress.
The measure opens up the local retail trade industry to foreign-owned partnership, associations and corporations formed and organized under Philippine laws upon registration with the Securities and Exchange Commission and the Department of Trade and Industry.
It removes the requirement under RA 8762 for foreign investors acquiring shares of stock of local retailers as well as the requirement for public offering of shares of stock by foreign owned retail enterprises.
The bill also removes the required net worth, number of retailing branches, and retailing track record conditions for foreign retailers to engage in retail trade in the country.
It also reduces the required locally manufactured products carried by foreign retailers from 30 percent to 10 percent of the aggregate cost of their stock inventory.
One of the proponents, ways and means committee chair and Albay 2nd district Rep. Joey Salceda said the proposed measure would result in greater variety of products, more choices of goods for consumers, inflow of new technology and employment of more Filipinos.
His House Bill 1222 seeks to “boost the entry of foreign investments in the retail trade sector to make it a more robust contributor to the national economy.”
“With this liberalizing measure, it is envisaged that foreign participation in retail trade business will increase considerably to create more jobs and better quality products at cheaper prices for Filipino consumers,” Salceda said.