President Ferdinand R. Marcos Jr. on Tuesday directed the Securities and Exchange Commission (SEC) to address bureaucratic bottlenecks to ensure the successful implementation of Republic Act (RA) 12214 or the Capital Markets Efficiency Promotion Act (CMEPA).
He expressed confidence that the special bell-ringing to mark the effectivity of the CMEPA will pave the way for a “new era of economic dynamism, investor confidence, and sustainable growth.”
“Let every ring—from this morning and every trading day thereafter—echo our strength, our optimism, [and] our shared hope for a more prosperous future for all Filipinos,” Marcos said during the special bell-ringing ceremony at the Philippine Stock Exchange Tower in Taguig City.
“To ensure the successful implementation of this reform, I direct the Securities and Exchange Commission to streamline its procedures, remove bureaucratic bottlenecks, [and] reduce transaction costs within its control. Undertake the necessary changes to fulfill your responsibilities in these changing times.”
Marcos also ordered all concerned agencies to ensure that every Filipino would feel the full benefits of CMEPA without delay.
He also called on all market participants and stakeholders to uphold transparency, fairness, and good governance, reminding them that market integrity is a shared responsibility.
“By working together in good faith, we can build an industry that earns the market’s trust both here and abroad,” he said.
Marcos made the call, as he noted that from now until 2030, CMEPA is projected to generate over PHP25 billion in net revenue, “a substantial sum that can help fund the building of roads, bridges, hospitals, schools, other social safety net programs as well.”
He said the law would also reinforce confidence, as it indicates that the country’s financial system is becoming more equitable and structured for long-term stability.
CMEPA, Marcos said, would benefit not just the wealthy, the professionals, and the stock traders but every Filipino who dreams of better financial security.
“It empowers the small business owner, the young professional, and the overseas Filipino worker to start investing their hard-earned money to build a better future,” Marcos said.
“Indeed, this Act allows Filipinos to be true participants in our nation’s economic growth. This law enhances our competitiveness in the ASEAN (Association of Southeast Asian Nations) region and strengthens the foundations of a capital market that can thrive on the global stage.”
Championed by the Department of Finance (DOF), the CMEPA is a landmark reform that brings capital market investments closer to the Filipino people by making investment channels clearer, more affordable, and more accessible, especially for small investors.
Some of the CMEPA’s provisions are the outright reduction of the stock transaction tax (STT) to 0.1 percent from the current 0.6 percent, as well as the expansion of the scope of STT to include other securities listed and traded through the local stock exchange.
One of the law’s key features is the reduction of the Documentary Stamp Tax (DST) on the original issue of shares of stock from 1 percent to 0.75 percent.
The measures are seen to cut transaction costs, encourage market participation and financial planning, boost market liquidity, make the country’s equity market regionally competitive, and increase capital market growth, according to the DOF. (PNA)