President Duterte has made it easier for foreigners to invest in the Philippine retail sector.

This, after Duterte signed into law Republic Act (RA) No.11595, which amended RA No. 8762 or the two-decade old Retail Trade Liberalization Act.

The full title of the new law reads, "An act amending Republic Act No. 8762, otherwise known as the 'Retail Trade Liberalization Act of 2000', by lowering the required paid-up capital for foreign retail enterprises, and for other purposes." It was signed by the President last Dec. 10.

Under RA No.11595, the minimum paid-up capital for foreign retail investors is lowered to P25 million.

Based on the previous version of the law, foreigners can set up wholly-owned enterprises with a minimum paid-up capital of $2.5 million or some P127 million, subject to certain requirements.

This legal revision has been clamored for by local business group. It was mentioned by Duterte as a priority measure during his last State of the Nation Address (SONA) in July 2021.

Proponents of the bill expect the country to get a boost in foreign direct investments or FDI with the further opening up of the local retail sector.

According to the four-page statute, the Department of Trade and Industry (DTI), the Securities and Exchange Commission (SEC), and the National Economic and Development Authority (NEDA) will review the required minimum paid-up capital every three years.

It provides for a "minimum investment per store’" that "will include the value of the gross assets, tangible or intangible, including but not limited to buildings, leaseholds, furniture, equipment, inventory, and common use facilities".

“In the case of foreign retailers engaged in retail trade through more than one physical store, the minimum investment per store must be at least P10 million," it added.