OECD recommends strengthening Philippines' capital markets

The Organisation for Economic Co-operation and Development (OECD) has released policy recommendations aimed at strengthening the Philippines' capital market and boosting investor confidence.

During an event hosted by the Securities and Exchange Commission (SEC) in Makati City on Wednesday, the OECD presented its Capital Market Review of the Philippines, emphasizing the need to deepen the bond market and broaden the investor base.

Key recommendations include enforcing corporate governance policies more strictly to build investor trust, shortening the lengthy process for public equity offerings involving both the SEC and Philippine Stock Exchange (PSE), and updating the Corporate Governance Code to align with global standards.

The OECD highlighted challenges such as low activity in equity and bond markets, dominance of conglomerates containing within-group banks, and a limited number of newly-listed firms and capital raised via IPOs.

SEC Chairperson Emilio Aquino welcomed the report, affirming the agency's commitment to fostering a robust and dynamic capital market consistent with its goal of becoming one of the best in Southeast Asia.