The success of the Philippines’ new capital market reforms hinges on a nationwide push for financial education and building investor trust, according to Jesus Mariano “Manny” Ocampo, President and COO of the Investment & Capital Corporation of the Philippines (ICCP).
In a recent statement, Ocampo highlighted that while landmark legislation like the Capital Market Efficiency Promotion Act (CMEPA) and the Personal Equity and Retirement Account (PERA) law have laid the groundwork for a more inclusive financial system, their full impact can only be realized if more Filipinos understand how to participate.
“People can only benefit from these reforms if they know they exist,” said Ocampo. “The real challenge is financial education and trust, especially for first-time investors and overseas Filipinos.”
CMEPA’s Initial Success Shows Promise
Ocampo pointed to the immediate positive effects of CMEPA, which lowered the stock transaction tax from 0.6% to 0.1%. He noted that in the weeks following its implementation, the average daily trading value on the Philippine Stock Exchange jumped by 50%, from ₱6.8 billion to ₱10.6 billion. This significant increase suggests that tax reforms can effectively encourage broader participation and improve market liquidity.
Unlocking PERA’s Potential
Despite its tax incentives for both employees and employers, Ocampo stressed that the PERA law remains an untapped opportunity due to low public awareness. Unlike mandatory programs like the SSS, PERA requires individual initiative, which is often lacking.
“Many workers don’t even know PERA exists,” Ocampo said. He advocated for a grassroots approach, urging government agencies like the Department of Education (DepEd), Commission on Higher Education (CHED), and the Technical Education and Skills Development Authority (TESDA) to integrate financial literacy into their curricula.
Reaching OFWs and Provincial Investors
With over $30 billion in annual remittances, overseas Filipino workers (OFWs) represent a critical target for these reforms. Ocampo highlighted that many OFWs remain unbanked and disconnected from formal investment channels, relying on informal methods to send money home.
He called for collaboration between government bodies, such as the Department of Migrant Workers (DMW), and the private sector to develop simpler, more trusted digital investment platforms and educational campaigns specifically for Filipinos working abroad and those in the provinces.
“The cost savings and tax simplifications under CMEPA and PERA are available to everyone,” Ocampo concluded. “But to make investing truly inclusive, we must reach out to the provinces, to small earners, to OFWs—and provide tools, education, and trust.”
