The Commission on Filipinos Overseas (CFO) is calling on overseas Filipinos and their families to explore stock market investments in the Philippines, as the recently slashed stock transaction tax (STT) opens the door to more rewarding opportunities.
From a high of 0.6%, the STT has been reduced to 0.1%—the lowest in Southeast Asia—through the Capital Markets Efficiency Promotion Act (CMEPA), which officially took effect this week. The law is expected to enhance market participation and ease the cost burden for both local and overseas investors.
During a special bell-ringing ceremony marking the implementation of CMEPA, Philippine Stock Exchange (PSE) President and CEO Ramon Monzon pointed to a newly forged collaboration with the CFO that aims to equip long-term and permanent migrants with the tools and knowledge needed to participate in the capital market.
“[PSE] also entered into a Memorandum of Understanding (MOU) with CFO, under which PSE will showcase its PSE Academy website along with its online and mobile-app based platforms… in the webinar and training sessions we will conduct for Filipinos staying overseas for good,” Monzon said.
This partnership includes integration with the CFO’s BaLinkBayan platform, a one-stop portal that connects the diaspora to investment prospects, donation programs, and government services in the Philippines. The goal is to make capital market access more inclusive and practical for OFWs and Filipino migrants who want to contribute to nation-building beyond just remittances.
CFO Chairperson Dante “Klink” Ang II stressed the broader vision during the MOU signing with the PSE last June 17. “More importantly, we wish to leverage this partnership to engage with the diaspora giving them opportunities to take part in national development beyond remittances through investments,” he said.
Driving the financial literacy component of this initiative is the CFO’s PESO Sense campaign, which uses digital platforms to reach Filipino families with content on savings and investing. Its Facebook page, with 3.9 million followers and an average monthly reach of 7 million, serves as a key touchpoint for spreading awareness on building financial independence.
Monzon, meanwhile, acknowledged that while the STT cut will stimulate trading activity, deeper issues such as market liquidity still need to be addressed. “We must also continue to find more ways to get more people to invest in the stock market instead of spending for non-essentials or throwing their hard-earned money in online gambling,” he said.
