Industry sources said Pilipinas Makro has increased its capital to P375 million in preparation for its application to operate as a retail firm and avail itself of incentives provided under the new Retail Trade Act.
Under the new Retail Trade Act, foreign retailers must be organized under Philippine laws and must have a paid-up capital of at least P125 million or $2.5 million.
If a foreign retailer has a capitalization of less than P375 million or $7.5 million, it must wait for two years before it can be allowed to operate.
Sources said Makro is trying to take advantage of the present situation where its other potential competitors such as the French retail companies Carrefour and the Casino Group have decided to delay their entry into the country.
Carrefour had initially been negotiating with the Rustans Group for a joint venture retail firm.
But the prevailing political and economic situation has discouraged the French retail firm which has shelved its plans of coming in.
Another French firm, the Casino Group announced on Wednesday its decision to back out of its earlier plan to invest in the Uniwide Group.
Makro entered the country in 1996. It currently operates as a "members only" warehouse club and those applying for membership have to present a business registration.
Once its application to operate as a retail firm is approved, Makro would most probably open up its stores to the general public in much the same way as the Uniwide Sales operates, sources said.