Senate OKs retail trade liberalization law amendment on final reading

The Senate on Wednesday approved on third and final reading the bill lowering the required paid-up capital for foreign retail enterprises before it can enter the domestic market.

Twenty senators voted in favor of Senate Bill 1840, which seeks to amend the Retail Trade Liberalization Act of 2000.

The final version of the bill lowers the required paid-up capital of foreign retailers entering the local market from US$2.5 million to US$1 million or around P50 million.

"We are liberalizing it but not too low so that the competition will be at the medium level as discussed during the period of interpellation, plus we want to attract quality. That’s why we suggested that the paid up capital should be at least P50 million but then they can put up two stores at P25 million each. That amendment will come later on,” Senate President Pro Tempore Ralph Recto said.

The amendment to the Retail Trade Liberalization Act is among the 11 priority measures identified by the Legislative-Executive Development Advisory Council.

In April, President Rodrigo Duterte certified SB 1840 as urgent.

The said measure, along with the bills amending the Public Service Act, and the Foreign Investments Act, are aimed to “address the immediate and continuing need for legislative reforms to provide a more conducive investment climate, increase job opportunities, foster more competition, and further spur the country’s economic growth,” the President said in his letter.—LDF, GMA News