DOF Urges PSE To Facilitate Ownership For Ordinary Filipinos In Nation’s Growth

The Department of Finance (DOF) has called upon the Philippine Stock Exchange (PSE) to play a role in reshaping the country’s capital market, enabling ordinary Filipinos to become stakeholders in the nation’s progress.

The DOF secretary underscored that the PSE, as the sole stock exchange in the country, operates as a self-regulatory organization, ensuring a fair, efficient, transparent, and orderly marketplace for securities trading. I Photo: Andrew G. Contreras, The Financial District

DOF Secretary Ralph Recto emphasized, “With the assistance of the PSE, I am eager to develop the Philippine capital market into a platform where more small-scale enterprises and wage earners can participate as shareholders. This will gauge our success in distributing economic opportunities and ensuring inclusive growth.”

Recto added, “Enhancing public access to investment opportunities and fostering a diverse financial system are crucial prerequisites for achieving inclusive growth.”

The Finance chief underscored that the PSE, as the sole stock exchange in the country, operates as a self-regulatory organization, ensuring a fair, efficient, transparent, and orderly marketplace for securities trading.

Additionally, it provides a convenient venue for businesses to raise capital to foster growth.

Secretary Recto commended the PSE for staying true to its mandate as the engine driving financing for the country’s productive enterprises, which generate employment opportunities for Filipinos.

He particularly lauded the PSE's proactive efforts to increase capital raising activities, including doubling the number of initial public offerings this year and introducing innovative measures.

Recto praised the PSE's initiatives, such as developing a framework for short selling, facilitating after-hours Volume Weighted Average Price (VWAP) trading, enhancing retail investors' access through mobile applications like Gcash and Maya, and exploring the potential for Derivatives trading.

The secretary also highlighted the PSE's success in diversifying the stock market by encouraging ten small companies to list, with a combined issue size of PHP 29.6 billion.

Recto pledged that the DOF would implement capital market reforms aimed at bolstering investor protection, corporate governance, shareholder involvement, and broader investor participation.

He revealed that the DOF is advocating for the passage of Package 4 of the Comprehensive Tax Reform Program (CTRP), which aims to streamline and simplify the tax structure on passive income and financial products.

Furthermore, the DOF will push for the enactment of the Capital Market Efficiency Promotion Act, continue its support for the Capital Market Development Act, and ensure the Securities and Exchange Commission (SEC) expeditiously processes and approves public listings.

Recto disclosed the DOF's plans to amend the charters of the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP), potentially including their public listing, to broaden the local capital market.

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