German firms laud changes in Retail Trade Liberalization Act

MANILA, Philippines — The German-Philippine Chamber of Commerce and Industry (GPCCI) said the recent passage of a law that eases restrictions for foreign retailers would help make the country more attractive to investments.

GPCCI executive director Christopher Zimmer said in a statement the group welcomes the signing into law of Republic Act 11595 or the amendments to the Retail Trade Liberalization (RTL) Act  of 2000 which make it easier for foreign retailers to set up shop in the country.

In particular, the law reduced the capitalization requirements for foreign retailers to around P25 million from $2.5 million or around P125 million.

Under the law, the minimum paid-up capital requirement would be reviewed by the Department of Trade and Industry, Securities and Exchange Commission, and National Economic and Development Authority every three years.

“As the law addresses the existing investment barriers, we are seeing massive opportunities for foreign retailers to participate in the Philippine market and will also help us further promote the country as an attractive investment destination,” Zimmer said.

GPCCI president Stefan Schmitz said the passage of the RTL is a step in the right direction and supports the country’s economic recovery from the pandemic.

He said for the country “to fully realize its potential, we urge the Philippine government to pass the other economic bills such as the amendments to Foreign Investments Act (FIA) and Public Service Act  (PSA) as it complements RTL in further opening up the Philippine economy,” he said.

Amendments to the FIA seek to promote foreign investments in the country.

Under the proposed measure, an Inter-Agency Investment Promotions Coordination Committee to be responsible for a foreign investment promotion plan would be created, as well as an online portal which includes a directory of local firms ready for partnerships in priority sectors.

Proposed amendments to the PSA, on the other hand, seek to allow greater foreign investment in the telecommunication and transportation sectors.

GPCCI represents German businesses in the Philippines and is composed of around 300 members.

The group supports companies looking to enter and expand in the country.