The approval of the Retail Trade Liberalization Act has sparked the interest of several foreign and multinational corporations, which are currently exploring how to improve the business landscape in the Philippines, according to an official from the National Economic Development and development.
NEDA’s Director of Commerce, Services and Industry Personnel, Bien Ganapin, told a forum organized by the British Chamber of Commerce in the Philippines that companies from Japan, South Korea, Indonesia, China, United Arab Emirates and Denmark were interested in investing in the Philippines following the enactment of the new retail law.
“These are real potential leads awaiting the finalization of the law. In Japan, for example, they are interested in expanding convenience stores and specialty restaurants. Indonesia is interested in pharmaceuticals and China in foodservices and motor vehicle operations,” he said.
South Korean companies are keen to bring in food franchises, while UAE investors are interested in the medical equipment retail segments. Danish companies are planning to bring quality footwear, he said.
The amended RTLA reduced the minimum paid-up capitalization requirement for overseas retailers from $2.5 million to P25 million and lowered the investment requirement per store to P10 million.
BCCP chairman Chris Nelson said that while there are overseas businesses that automatically qualify to expand under the amended RTL, UK businesses would like to know whether the law is flexible enough to allow existing businesses to benefit from similar incentives offered to new entrants.
McDonald’s Philippines, Watson’s Personal Care Ltd., Louis Vuitton Philippines Inc., Lexus Manila, Forever 21 Philippines, Fast Retailing Philippines are among the existing retailers prequalified under RTL or Republic Act No. 8762. Inc., Rustan’s Supercenters, Rose Pharmacy, Inc., CJO Shopping Corporatiin, H&M Philippines, Philippine Family Mart CVS, Mariwasa-Siam Ceramics, Decathlon Sports Philippines, Ikano Philippines Inc., Muji Philippines Corp., BF Jade E-services Phils. , PG Lawson Company Inc., M. DIY, Adidas Philippines Inc., Motor Image Pilipinas Inc., Marionnaud Philippines Inc., Samsonite Philippines Inc., Diverse Retailiz, Johnson Health Tech Co., Philippines Ltd., Estee Lauder Corp. Inc. and Oni Global Distribution Corp.
Nelson said the RTL’s implementing rules and regulations should be clear about how other existing businesses can benefit from the law.
Ganapin said the government’s ambitious goal is to complete the TRI this month.
“I think, I’m pretty confident that it will be released by March, but for the Foreign Investment Act and the Philippine Services Act, the lofty goal is to complete the IRR before the end of this administration. “, did he declare.