For the first time since taking office in June 2022, His Excellency Ferdinand R. Marcos Jr. today rang the opening bell at the Philippine Stock Exchange (PSE), signifying the official implementation of Republic Act No. 12214, or the Capital Markets Efficiency Promotion Act (CMEPA). This landmark legislation slashes the stock transaction tax (STT) from 0.6 percent to a significantly more competitive 0.1 percent.
The bell ringing ceremony, hosted by the PSE, celebrated CMEPA’s immediate impact on making the Philippine capital market more attractive and accessible for investors.
In his welcome remarks, PSE President and CEO Ramon S. Monzon highlighted the critical need for this reform. “Technology has enabled investors to access global markets and can now easily trade in markets where they can find attractive returns, manage risks, and trade with a minimum of friction costs,” Mr. Monzon stated. He noted that while the PSE offers compelling returns and risk management, its 0.6 percent STT, combined with a previous minimum broker commission (removed by the SEC in April 2024), made it the ASEAN-6 exchange with the highest friction costs. “Today, thanks to CMEPA, all trades at PSE will be subject to an STT of only 0.1 percent from 0.6 percent, finally making us competitive with our regional peers in terms of friction costs,” he added. Mr. Monzon also extended the PSE’s profound gratitude to President Marcos for this pivotal legacy.
Beyond the substantial reduction in STT, CMEPA also expands the scope of the STT to include other securities listed and traded through the local stock exchange, further streamlining the market.
President Marcos, in his keynote message, underscored the widespread benefits of CMEPA for the nation and its citizens. “From now until the year 2030, CMEPA is projected to generate over Php 25 billion in net revenue – a substantial sum that can help fund the building of roads, bridges, hospitals, schools, and other social safety net programs,” President Marcos stated. “But beyond revenue, CMEPA reinforces confidence; it shows that our financial system is becoming more equitable and structured for long-term stability. The reform is not just for the well-off and for the professionals, for the stock traders, it is for 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.”
President Marcos emphasized that the Act empowers Filipinos to be true participants in the nation’s economic growth, enhancing competitiveness within the ASEAN region and strengthening the foundations of a capital market poised for global success.
“Today, as we ring the bell to open the market, we signal 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, our shared hope for a more prosperous future for all Filipinos,” he concluded.
The significant event was attended by key government officials, including Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Secretary Frederick D. Go, Department of Finance (DOF) Secretary Ralph G. Recto, Senator Sherwin T. Gatchalian, and Securities and Exchange Commission (SEC) Chairperson Atty. Francis Ed. Lim, alongside heads of select publicly listed companies and members of the PSE Board of Directors and Management Committee.
