PRA backs easing of foreign ownership limits

The Philippine Retailers Association (PRA) has backed new foreign investment rules that President Marcos signed, allowing foreigners to own up to 40 percent of retail companies with paid-up capital of less than P25 million.

In a statement on Saturday, the group said that the changes under Executive Order No. 113 strike a “careful balance” between opening the sector to foreign capital and preserving the competitiveness of local retailers.

The PRA noted that the updated Foreign Investment Negative List removes the outright prohibition on foreign ownership in small retail firms.

Still, it retains key safeguards, including reciprocity requirements and minimum investment thresholds for foreign players.

“Such a move may attract more foreign retailers into the Philippine market and create opportunities for increased investment, job generation and enhanced consumer access to a wider range of goods and services,” the PRA said. 

“The government’s reforms seek to ensure that Filipino consumers remain the primary beneficiaries,” it added. 

Under new rules, foreign retailers must still meet conditions such as a minimum paid-up capital of P25 million, proof that their home country allows Filipino retailers to operate there and a minimum investment of P10 million per store.

Despite the change, the PRA emphasized that the Retail Trade Liberalization Act of 2000 remains in force and must be read alongside the updated Negative List. It described the latter as complementary to the law rather than a replacement. INQ