THE German-Philippine Chamber of Commerce and Industry (GPCCI) recently welcomed the passage of amendments to the Retail Business Liberalization Act (RTLA), or Republic Act (RA) 11595, which simplifies and relaxes restrictions for foreign retailers wishing to establish a presence in the Philippines.
The law signed amends certain provisions of the RTLA of 2000 (RA 8762), which lowers the capitalization requirements for foreign holdings from $2.5 million (125 million pesos) to approximately $500,000 (25 million pesos) .
“We welcome the enactment of this historic reform,” said Christopher Zimmer, Executive Director of the GPCCI. “As the law addresses existing barriers to investment, we see huge opportunities for foreign retailers to participate in the Philippine market, and it will also help us further promote the country as an attractive investment destination. .”
In addition, the qualification requirements set by the previous law have also been simplified by removing the required net worth, number of existing retail branches and retail history conditions. The law also requires the Ministry of Commerce and Industry as well as the National Economic Development Authority to review the minimum paid-up capital required every three years.
“Passing the RTLA is a step in the right direction towards the country’s economic recovery,” said GPCCI Chairman Stefan Schmitz. “To realize its full potential, we urge the Philippine government to pass the other economic bills, such as the amendments to the Foreign Investment Law and the Civil Service Law, as [they complement] the RTLA to further open up the Philippine economy.
The GPCCI belongs to the international network of German Chambers of Commerce Abroad, or AHK, represented by 140 offices in 92 countries. GPCCI is the official representation of German companies in the Philippines, which is a bilateral organization with approximately 300 members, as well as a service provider for companies in their market entry and expansion.