Arroyo backs reform measures proposed by private sector

President Arroyo expressed full support yesterday to a number of structural reform measures proposed by the private sector to help shore up the listless economy.

The President told a gathering of seven associations representing the country’s financial and capital market players that she would personally lobby in Congress for the passage of the measures.

Among the measures that are to be prioritized in Congress are the pending Personal Equity Retirement Act (PERA), the proposed Revised Investment Company Act (RICA), the proposed Securitization Act and a measure that would eliminate documentary stamp tax on secondary trades of securities.

Mrs. Arroyo said she has ordered Finance Secretary Jose Isidro Camacho and Trade and Industry Secretary Manuel Roxas II to monitor the progress of the measures in Congress.

She said she also asked the Securities and Exchange Commission (SEC) to adopt uniform disclosure standards as endorsed by various financial market organizations.

Mrs. Arroyo said she will confer with the new Speaker of the House of Representatives to shepherd the measures through Congress.

"We are bound to take the necessary overtures and communications with whoever will be the next Speaker," the President said during the luncheon meeting at the Hotel Intercontinental in Makati City.

The President conceded though that the current peace and order situation has caused markets to be jittery over the past few months.

"In the midst of these proposals to boost and rationalize the financial system, I’m sure that all of you want this issue of restoration of confidence," she said. "At a center of the restoration of confidence is, of course, the peace and order situation."

"Let us bear in mind that not only Juan dela Cruz but the rest of the foreign investment community is closely watching us, you and me," she said.

"The reforms we have touched on this presentation and also in my response to you, maybe the flicker of light at the end of the tunnel. And if we work together and understand each other’s needs, hopefully that tunnel will be very, very short," she added.

The structural reform measures the President endorsed were contained in a presentation by Senen Magtoto, president of the Investment Houses Association of the Philippines (IHAP).

Aside from IHAP, the six other organizations that took part in the meeting are Association of Securities Analysts of the Philippines (ASAP), Fund Management Association of the Philippines (FMAP), ACI Philippines, Financial Markets Association, Investment Companies Association of the Philippines (ICAP), Money Market Association of the Philippines (MART) and Trust Officers Association of the Philippines (TOAP).

Magtoto said the proposed measures are long-awaited reforms that will help expand the economy.

"Not only will these give savers and investors a wider range of instruments to choose from, it would also stimulate enterprises by way of expanding credit and equity markets," Magtoto said.