MANILA — Dutch firm Mulgrave Corp. BV has increased its stake in one of the country’s top drugstores, Rose Pharmacy.
The Board of Investments (BOI) approved the Dutch firm’s plan to raise its ownership in Cebu-based Rose Pharmacy from 49 percent to 51 percent.
“This reflects the sustained confidence of foreign investors in the country’s economy,” Trade Undersecretary and BOI managing head Ceferino Rodolfo said in a press statement Thursday.
Rodolfo said Mulgrave was also considering increasing its investments here, as well as making additional acquisition and expansion of retail outlets in the future.
Rose Pharmacy currently has 252 drugstores nationwide.
He added the company is bullish in the Philippines on the back of strong demand in the market.
“The BOI is seeing increasing interest of foreign investors in the Philippines to access the expanding domestic market,” Rodolfo said.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that foreign direct investment (FDI) inflows from January to October 2017 grew by 20.5 percent to USD7.9 billion from USD6.5 billion in the same period in 2016.
Net equity placements in October last year also surged to USD1.53 billion from USD60 million in the same month in 2016.
The central bank noted that additional equity went to sectors of power, manufacturing, construction, and wholesale and retail trade.
Under Republic Act No. 8762, or the Retail Trade Liberalization Act, the Department of Trade and Industry (DTI), through the BOI, shall pre-qualify all foreign retailers before they conduct their businesses in the country.
Retail trade is one of the sectors that the government targets to further liberalize by lowering the minimum paid-up capital to attract more foreign retail investors. (PNA)
