President Ferdinand Marcos Jr. on Tuesday called on the Securities and Exchange Commission (SEC) to streamline its regulatory processes, reduce transaction costs, and accelerate reforms to support the growth of the Philippine capital market, aligning with the goals of the newly enacted Capital Market Efficiency Promotion Act (CMEPA).
Speaking at the ringinging of the bell before the start of trade on the Philippine Stock Exchange (PSE), the President hailed the law as a “landmark” measure that would empower ordinary Filipinos to become active participants in the future growth of the nation.
“This act allows Filipinos to be true participants in the nation’s economic growth,” he said. “It enhances our competitiveness in the ASEAN region and strengthens the foundation of a capital market that can thrive on the global stage.”
He said the law is expected to generate around P25 billion in additional revenue over several years and corrects certain imbalances in the tax structure to entice individuals and corporations to invest.
Signed into law in May, CMEPA aims to broaden investor participation and make the capital markets more attractive to both local and foreign investors. One of its key provisions is the reduction of the documentary stamp tax on stock transactions—from 0.6 percent to 0.1 percent—bringing the Philippines closer in line with regional peers like Indonesia and Vietnam. Some countries in the region, including Singapore and Malaysia, do not impose any stamp tax on capital market transactions.
PSE president and chief executive officer Ramon Monzon welcomed the move, noting that lower friction costs have a proven impact on trading volumes. He cited Taiwan’s experience in 2017, when a cut in stamp tax led to a 3.09 times increase in average daily trading volume within four years.
Still, Monzon said that reducing taxes is only part of the solution. Liquidity remains a structural challenge in the local bourse. He urged regulators and market participants to increase the number of listed companies, expand product offerings—such as index futures—and deepen investor education to draw more Filipinos into capital markets.
“We must also continue to find more ways to get more people to invest of the stock market, instead of spending for non-essentials or throwing their hard earned money on online gambling,” he added.
President Marcos echoed this view, calling on all stakeholders to embrace a long-term vision for financial inclusion, innovation, and sustainable market development.
