On March 05, 2020, the House of Representatives approved on the second reading House Bill 59. The said bill if signed into law will amend Republic Act (RA) 8762 or the Retail Trade Liberalization Act of 2000.
As a background, RA 8762 was passed “to promote consumer welfare in attracting promoting and welcoming productive investment that will bring down price for the Filipino consumer, create more jobs, promote tourism, assist small manufacturers, stimulate economic growth and enable Philippine goods and services to become globally competitive through the liberalization of the retail trade sector.”
In line with declared policy of RA 8762, foreigners can entirely own an enterprise engaged in retail trade here in the Philippines provided that their paid-up capital is at least US$2,500,000.00. Although, the law brought in foreign investments, the amount is too restrictive as it is one of the highest in the ASEAN region. Thus, House Bill 59 was introduced in the lower House to amend the same.
HOUSE BILL 59
House Bill 59 lowers the minimum requirement for paid-up capital for foreign retailers to engage in retail trade in the Philippines to US$200,000.00. This amendment puts the Philippines to have one of the lowest requirements for foreign-owned retail enterprises in the ASEAN region.
This bill if enacted into law will surely attract more foreign investors which will create more jobs for Filipinos and increase the diversity of products in the market, thereby increasing the quality of life for our citizens as a whole.