The German-Philippine Chamber of Commerce and Industry (GPCCI) welcomed the enactment the Retail Trade Liberalization Act (RTLA) or Republic Act No. 11595, stating the amendments to the old law elevate the country as an attractive investment destination.
The new RTLA simplifies and eases restrictions for foreign retailers that wish to set up shop in the Philippines.
The signed law amends certain provisions of the Retail Trade Liberalization Act of 2000 (Republic Act No. 8762) which lowers the capitalization requirements for foreign ownerships from $2.5 million (P125 million) down to around $500,000 (P25 million).
“We welcome the enactment of this landmark reform,” said GPCCI Executive Director Christopher Zimmer “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.”
Furthermore, the qualification requirements set by the previous law were also simplified by removing required net worth, the number of existing retailing branches, and retailing track record conditions. The law also requires the Department of Trade and Industry (DTI) and National Economic Development Authority (NEDA) to review the required minimum paid-up capital every three years.
“The passage of RTLA is a step in the right direction towards the economic recovery of the country,” said GPCCI President Stefan Schmitz “to fully realize its potential, we urge the Philippine government to pass the other economic bills such as the amendments to Foreign Investment Act and Public Service Act as it complements RTLA in further opening up the Philippine economy.”
GPCCI belongs to the international network of German Chambers of Commerce Abroad (AHKs) that is represented by 140 offices in 92 countries. GPCCI is the official representation of German businesses in the Philippines; a bilateral membership organization with around 300 members; and a service provider to companies in their market entry and expansion.