SEC plans to pursue more reforms after upper-middle income upgrade

THE Securities and Exchange Commission (SEC) said it will pursue additional capital market and ease-of-doing-business reforms following the World Bank’s reclassification of the Philippines as an upper-middle income economy, including rules on market making and changes to the public offering framework for debt securities.

The corporate regulator said it will also continue efforts to streamline business registration and capital-raising processes.

“At the SEC, we remain steadfast in implementing reforms that would enhance the ease of doing business and reinforce capital market activity. By encouraging more businesses to formalize and by creating an environment that empowers them to expand, we are helping create sustainable job opportunities for more Filipinos,” SEC Chairperson Francisco Ed. Lim said in a statement on Tuesday.

“We will remain relentless in pursuing reforms that will not only create an environment conducive to business and economic growth, but will also align our practices with international standards, in line with our vision of establishing the Philippines as a highly attractive, world-class hub for investments,” he added.

The SEC said it has implemented several reforms over the past five years, including the digitalization of corporate registration, amendment applications, and reportorial filings to shorten processing times.

From 2021 to 2025, the commission recorded 232,524 new company registrations representing P618.16 billion in declared capital investments. New registrations reached a record 52,544 in 2024.

As of June 17, the SEC had granted P139.6 million in fee discounts to micro, small, and medium enterprises seeking to register and raise funds through the capital market.

The commission also said it introduced regulatory frameworks for real estate investment trusts (REITs) and crypto-assets, and launched expedited securities registration programs for priority sectors, including power, healthcare, and agribusiness.

“With this, capital market activity remained dynamic, with P712.22-billion capital raised through the stock market from 2021 to 2025,” the SEC said.

“Of this, P203.42 billion were raised through initial public offerings, P266.69 billion through follow-on offerings, P132.49 billion from private placement, and P109.63 billion from stock rights offerings. Meanwhile, capital raised through corporate bond issuances reached P1.75 trillion during the period.”

The World Bank recently reclassified the Philippines as an upper-middle income economy after the country’s gross national income per capita reached a record $4,850. The Philippines had been classified as a lower-middle income economy since 1987. — Alexandria Grace C. Magno