Phl to cut minimum paid-up capital for foreign investors

The Philippines plans to lower the minimum paidup capital for foreign retail investors by 92 percent, as a way of compelling local players to be globally competitive for the benefit of consumers.

In an interview with reporters on Monday, Socioeconomic Planning Secretary Ernesto Pernia said the government is looking at cutting the minimum paidup capital to $200,000 from the prevailing $2.5 million.

"It used to be 2.5 million. We are using 200,000 dollars," Pernia said on the sidelines of the 28th National Statistics Month opening ceremony in Mandaluyong City.

"In general, we are trying to liberalize the FIA (Foreign Investments Act)," Pernia noted.

The move is in line with the initiative to make local players perform on a par with foreign competitors.

"We'll make them more competitive and they will be forced to be internationally competitive. The purpose is to make the consumers happy," he said.

Pernia said last month the Philippines was expected to release a "drastically" shorter foreign investment negative list later this year.

The list identifies the activities and sectors barring foreign participation.

"I want a more aggressive liberalization, because they have shown me a draft and I find it too puny in terms of changes. I want it more aggressive and we have to be at par with other ASEAN [nations]," Pernia noted.

Pernia said he is scheduled to review the draft list on Monday.

President Rodrigo Duterte is expected to sign the list during the next National Economic Development Authority (NEDA)) Board meeting.

"We haven't yet set a date but there would definitely be one before the end of the year," Pernia noted.