PHILIPPINE RETAILING
Local News
4TH QUARTER 2018
Pres. Duterte signs EO updating
foreign investment limitations
President Rodrigo Duterte has recently signed Executive Order
No. 65, updating the list of investment areas, which prohibits or
limits foreign ownership in the Philippines.
According to the EO, no foreign equity is allowed under retail trade enterprises
with paid-up capital of less than US$2, 5000, 000, as well as mass media
(except recording) and internet business; practice of professions; cooperatives;
organization and operation of private detective, watchmen, or security guard
agencies; small-scale mining; utilization of marine resources in archipelagic
waters, territorial sea and exclusive economic zone as well as small-scale
utilization of natural resources in rivers, lakes, bays and lagoons; ownership,
operation and management of cockpits; manufacture, repair, stockpiling and/
or distribution of biological, chemical and radiological weapons and anti-
personnel mines; and manufacture of firecrackers and other pyrotechnic
devices.
Foreigners are allowed 25% equity in private recruitment, whether for local or
overseas employment, and contract for the construction of defense-related
structures.
Under the EO, a 30% foreign equity on advertising remains. A 40% cap on locally-funded public works and private radio communications network sector is now
allowed up from the previous 25% and 20%.
For exploration, development, and utilization of natural resources; ownership of private lands; operation of public utilities, except power generation and supply of
electricity to the contestable market and such other like businesses or services not covered by the definition of public utilities; educational institutions other than
those established by religious groups and mission boards; culture, production, milling, processing, trading except retailing, of rice and corn
and acquiring, by barter, purchase or otherwise, rice and corn and the by-products; contracts for the supply of materials, goods and commodities to government-
owned or controlled corporation, company, agency or municipal corporation; operation of deep sea commercial fishing vessels; and ownership of condominium
units, Duterte also allowed 40% foreign equity.
Presidential Spokesperson Salvador Panelo said the latest Foreign Investment Negative List was “meant to liberalize as many sectors as possible to keep up with
domestic and global demands, and designed to be consistent with the policy of easing restrictions on foreign participation in certain industries or activities.
Inquirer.net, 10/31/2018
Robot concierges soon to operate at SM malls
In your future visit to SM malls, you might be talking to a robot concierge to help
you in your shopping, after the biggest mall chain the country has partnered with
technology company Cal-Comp Technology (Philippines) Inc. to launch the first New
Era AI Robotic Service in its SM malls nationwide.
The country’s first ever in-mall smart customer service robot will make its debut appearance at SM
Megamall in the first quarter of 2019.
The robot will provide seamless customer service by directing mall-goers and answering queries about
Megamall shops and tenant promos. The large screen and speakers on the robot provide real time
promotion with interactive wayfinding service with more relevant results and less effort.
This will be possible through artificial intelligence technologies within the service robot.
The service robot has features like smart voice interactivity and facial detection and is equipped with a
front screen which can be used for mobile advertisements and delivering other announcements.
Cal-Comp Technology and NKG CEO Simon Shen said the partnership would be a game changer.
“Our partnership with SM Supermalls will revolutionize the local retail industry, and we are excited for the
rollout of this new technology across all SM Supermalls in the Philippines,” Shen said.
SM Supermalls chief operating officer Steven Tan said they are excited about the partnership as it would
bring to customers another fun innovation that aims to transform shopping and retail experiences in the
country.
The Philippine Star, 10/25/2018
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