Marcos orders streamlining to cut market transaction costs

President Ferdinand R. Marcos Jr. has ordered the Securities and Exchange Commission (SEC) to simplify procedures and reduce transaction costs to support the implementation of the newly enacted Capital Markets Efficiency Promotion Act (CMEPA), which took effect this week.

Speaking during a special bell-ringing ceremony at the Philippine Stock Exchange (PSE) in Bonifacio Global City, the President emphasized that capital market reforms must go beyond legislation and into implementation.

“To ensure the successful implementation of this reform, I direct the SEC to streamline its procedures, remove bureaucratic bottlenecks, and reduce transaction costs within its control,” Marcos said.

CMEPA, signed into law in May 2025, aims to improve accessibility and competitiveness of the Philippine capital market. One key provision is the reduction of the stock transaction tax (STT) from 0.6% to 0.1%, making local trading costs more competitive with regional peers in ASEAN.

“For a first-time investor buying %u20B110,000 worth of stock, this means paying %u20B110 in tax instead of %u20B160,” the President said.

The law also removes the documentary stamp tax on mutual funds and unit investment trust funds (UITFs), introduces a uniform 20% final tax on interest income, and offers additional tax deductions for employers contributing to retirement accounts.

Government officials said these measures are expected to generate %u20B125 billion in revenue through 2030 and help build critical infrastructure and social programs.

While the President urged market participants to uphold transparency and good governance, he also encouraged Filipinos to invest more prudently.

Meanwhile, PSE President Ramon Monzon welcomed the STT cut but called for additional reforms to make investing more accessible. These include changes to board lot requirements, the introduction of derivative products, and more inclusive listing rules.

Market analysts noted a positive investor reaction following the law's implementation, with the PSE index gaining 0.92% on Tuesday to close at 6,423.85.