Finance Secretary Ralph Recto has reiterated his desire to have the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP) listed in the stock market.
Recto said the DOF is looking at amending the charters of Landbank and DBP for this initiative.
Recto made the pronouncement in a reception hosted by the Philippine Stock Exchange (PSE) in its headquarters in Bonifacio Global City this week.
Recto also vowed to implement capital market reforms that will enhance investor protection, corporate governance, shareholder centrality and broader investor participation.
In particular, Recto said the Department of Finance (DOF) is pushing for the passage of its refined proposal on Package 4 of the Comprehensive Tax Reform Program, which aims to harmonize and simplify the tax structure on passive income, financial products and its transactions to spur greater capital inflow and economic activity.
“In addition, the DOF will also pursue the passage of the Capital Market Efficiency Promotion Act which aims to reduce the tax on stock transactions from 0.6 percent to just 0.1 percent of stock value,” he said.
The DOF is likewise supporting the Capital Market Development Act which will address weaknesses of the current private pension system and in the process vigorously develop a dynamic and diversified domestic capital market, he added.
“The DOF will also ensure that the Securities and Exchange Commission executes swift and efficient approvals on public listings to further encourage the growth of enterprises,” Recto said.
Recto, meanwhile, urged the PSE to work with the government in transforming the country’s capital market as a vehicle for ordinary Filipinos to become shareholders in the nation’s growth.
“Wider public access to investment opportunities and a broad-based financial system are key conditions for achieving inclusive growth,” he said.
“With the help of the PSE, I look forward to building the Philippine capital market into a platform where more small companies and wage earners become shareholders. That will be a measure of how much we have dispersed our economic activities and how inclusive our growth has been,” Recto added.
He also urged the PSE to embrace the full digitalization of processes across the board to modernize systems and introduce more innovations to expand market capitalization.
The finance chief noted that no modern economy can grow to accommodate all of its citizens if the capital market is backward.
“Remember that an efficient, transparent, and accountable capital market will not only capitalize corporations, it will also help us build a stronger middle class. All our efforts towards modernizing the capital market will lead to better distribution of the nation’s wealth and reduced inequality,” he said.
“With this, I look forward to closely working with the PSE in transforming the Philippine capital market as a means for every business and every Filipino to be shareholders in the country’s growth,” added Recto.
