New capital markets law to boost stock market liquidity, dev't — analysts

REPUBLIC ACT NO. 12214, or the Capital Markets Efficiency Promotion Act (CMEPA), is expected to enhance the Philippine stock market by reducing transaction costs, boosting trading activity, and increasing liquidity, analysts said.

- By Revin Mikhael D. Ochave Reporter

CMEPA strengthens the Personal Equity and Retirement Accounts (PERA) program, which will help further develop the capital market, DragonFi Chief Executive Officer Jon Carlo C. Lim said in a Viber message over the weekend.

"This will not only help address the pension gap but also enhance the attractiveness of investible assets within the PERA framework — further deepening our capital markets," Mr. Lim said.

"This is a commendable piece of legislation that will advance the development of our capital markets," he added.

President Ferdinand R. Marcos, Jr. signed CMEPA into law on May 29.

Under the law, private employers who contribute an amount equal to or greater than their employees’ contributions to PERA are entitled to an additional 50% tax deduction on their actual contributions.

PERA is a voluntary retirement savings program that supplements employer-sponsored retirement plans and government-based pension plans.