The approval of the Retail Trade Liberalization Act sparked the interest of several foreign and multinational corporations, which are now exploring the improving business landscape in the Philippines, according to an official of the National Economic and Development Authority.
NEDA trade, services and industry staff director Bien Ganapin said in a forum organized by the British Chamber of Commerce in the Philippines that companies from Japan, South Korea, Indonesia, China, the United Arab Emirates and Denmark were interested investing in the Philippines following the enactment of the new retail law.
“These are actual potential leads waiting for the law to be finalized. Japan, for instance, they are interested in convenience store expansion and specialty restaurants. Indonesia is interested in pharmaceutical, and China in food service and motor vehicle operations,” he said.
South Korean companies are keen on bringing food franchises, while investors from the UAE are interested in medical equipment food retail segments. Companies from Denmark look at bringing in quality footwear, he said.
The amended RTLA reduced the minimum paid-up capitalization requirement for foreign retailers from $2.5 million to P25 million, and lowered the investment requirement per store to P10 million.
BCCP president Chris Nelson said while there are foreign companies that automatically qualify to expand under the amended RTL, British firms would like to know if the law is flexible enough to allow existing businesses to have similar incentives offered to new entrants.
Among the existing retailers that prequalified under RTL or Republic Act No. 8762 are McDonald’s Philippines, Watson’s Personal Care Ltd., Louis Vuitton Philippines Inc., Lexus Manila, Forever 21 Philippines, Fast Retailing Philippines. 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., Mr. 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. Beauty Inc. and Oni Global Distribution Corp.
Nelson said the implementing rules and regulation of the RTL should be clear on how other existing businesses can benefit from the law.
Ganapin said the government’s ambitious target is to finish the IRR this month.
“I think, I’m pretty confident that it will be published by March, but for the Foreign Investments Act and the Philippine Services Act, the ambitious target is to finish the IRR before the end of this administration,” he said.