Manila: 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.'

According to Philippines News Agency, Marcos emphasized the importance of the SEC streamlining its procedures, removing bureaucratic bottlenecks, and reducing transaction costs within its control. He urged the necessary changes to fulfill responsibilities in these evolving times. Marcos also instructed all relevant agencies to ensure that the benefits of CMEPA reach every Filipino without delay.

Marcos called on all market participants and stakeholders to prioritize transparency, fairness, and good governance, highlighting that market integrity is a collective responsibility. He expressed optimism that collaborative efforts will build an industry that garners trust both domestically and internationally.

Marcos noted that CMEPA is projected to generate over PHP25 billion in net revenue by 2030, a significant amount that can support infrastructure projects and social programs. He stated that the law would boost confidence by signaling a more equitable and stable financial system.

Marcos emphasized that CMEPA would benefit all Filipinos, including small business owners, young professionals, and overseas workers, by encouraging investment for a more secure financial future. He highlighted that the law enhances competitiveness in the ASEAN region and establishes a robust foundation for a thriving global capital market.

The CMEPA, championed by the Department of Finance (DOF), aims to make capital market investments more accessible to Filipinos, particularly small investors. Key provisions include reducing the stock transaction tax (STT) from 0.6 to 0.1 percent and expanding its scope to other securities. Additionally, the Documentary Stamp Tax (DST) on the original issue of shares is reduced from 1 percent to 0.75 percent.

The DOF indicates that these measures are expected to lower transaction costs, encourage market participation, boost liquidity, and enhance the competitiveness of the country's equity market regionally, thereby fostering capital market growth.