MANILA -- The Philippine Stock Exchange Inc. welcomed President Rodrigo Duterte’s pronouncement of maintaining and even improving current macroeconomic policies as well as the administration’s plan to increase infrastructure spending.
“The President’s major economic pronouncement should be good for the capital markets as investors are always looking for stability in policies. The commitment of the government to increase infrastructure spending should only be additive to the current high growth that we have been experiencing,” PSE President and Chief Executive Officer Hans B. Sicat said in a statement.
In his first State of the Nation Address on Monday, President Duterte said his administration would pursue prudent fiscal and monetary policies that help translate high growth into more and better job creation and poverty reduction.
The PSE also lauded his statement in pursuing reforms to ensure competitiveness and ease of doing business.
“In the face of globalization and economic integration, the standards for measuring the competitiveness of our industries must be viewed beyond the country’s economic territory,” Sicat said.
“We need to recognize that certain industries require massive amounts of capital, and options that allow consolidation, and liberalization of foreign ownership restrictions, can improve the competitiveness of these sectors,” he added.
The Exchange also looks forward to the results of the review of the implementing guidelines of the Real Estate Investment Trust (REIT).
Sicat hoped that the review, spearheaded by the Department of Finance, will lead to the resolution of the contentious issues that have prevented companies from applying under the REIT law.
"REITs should unlock the potential not just of the real estate sector, but also various infrastructure projects that are in need of significant funding and critical to the country’s economic growth,” he noted.
Meanwhile, the PSE is also eager to see the first Personal Equity and Retirement Account (PERA) being launched.
“We have seen how many markets have benefitted from a vibrant equity retirement framework in mobilizing savings and increasing retail participation in the capital markets. There has been a lot of work done on PERA and we hope these will lead to PERA being offered to the public soon,” he added.*PNA
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