'Reforms key to investor confidence'

While early signs of recovery are emerging in the local stock market, meaningful reforms and credible governance will be needed to fully restore investor confidence, according to an investment banker.

- By RICHMOND MERCURIO

Investment and Capital Corp. of the Philippines (ICCP) president and COO Manny Ocampo said the Philippine stock market stands at a critical juncture, shaped by political uncertainty, elevated interest rates and governance concerns.

Ocampo said that restoring investor confidence, however, depends less on short-term volatility and more on decisive leadership, institutional reform and credible corporate leadership, and good governance.

When investors see that the government is serious and that institutions are held accountable, they will come back to the market with longer-term commitments, Ocampo said.

"Investors want to see government and corporate leaders taking decisive action. Reforms, if implemented swiftly, can calm public discontent and uncertainty, and send the right signals to both local and foreign investors," he said.