Stella Quimbo backs amending Retail Trade Liberalization law
Marikina City Rep. Stella Quimbo has expressed support for the bill seeking to amend the Retail Trade Liberalization Law, which would lower the threshold for paid up capital for businesses to $200,000.
In a statement, Quimbo said the proposed new threshold “balances the need to be competitive in the ASEAN region and at the same time, to continue to protect micro and small establishments from foreign competition.”
She noted that since the passage of the Retail Trade Liberalization Act in 2000, only 43 foreign retail investments have been recorded. This in turn have generated approximately 22,000 jobs, equivalent to only 0.6 percent of the total jobs generated in wholesale and retail from the time liberalization was enacted.
Citing data from the Philippine Statistics Authority, Quimbo said only medium and large establishments would be directly affected by increased foreign cocompetition under the proposed amendment to the law.
“This makes up less than 1 percent of all establishments that will possibly face stiffer competition from foreign retail firms. Kaya’t ang epekto ng pagbaba ng minimum paid up capital ay dadami at titindi ang kompetisyon na haharapin ng mga dambuhalang kompanya at monopolyo,” he said.