According to a report by the Philippine Stock Exchange (PSE). Out of a total population of 89 Million in the Philippines, only 430,681 have active accounts with brokers in the Philippine Stock Exchange. Still an alarming statistic, is that out of the 430k, only 103,412 actively use their accounts and trade stocks.
In comparison with other Asian countries: Singapore has the highest population who trade in stocks and invest in the stock market by virtue of a 33% mark. Singapore beats out Japan and Australia who have 25% of their population who are stock investing. Malaysia then comes next with 18%, Hong Kong 17% and lastly Korea with 10%.
Even smaller than the number of local investors in the stock market were the number of foreign investors. Foreign investors account only for 4,713 trade accounts in the Philippine Stock Market.
Despite those statistics, the Philippine Stock Exchange remains optimistic in the local bourse owing to the fact that last year the PSE outpaced most of the other asian stock markets in terms of growth in trading activity, market capitalization and in raising capital for listed companies.
Mr. Francis Lim, PSE president and chief executive officer, said that they should continue their education and marketing campaign to train and educate the populace on how to invest in the stock market. They are also calling on the legislators to help them by passing critical laws which can stimulate investment in the securities market of the Philippines.
These Laws that the PSE are talking about are:
- Personal Equity Retirement Account (proposes to extend tax incentives to those who invest in the local capital market);
- The Credit Information System Act - aims to establish an efficient, comprehensive and centralized credit information system in an effort to improve the availability of inexpensive credit for businessmen.
- Corporate Recovery and Insolvency Act (CRIA) - is proposed to replace the country’s century-old and antiquated Insolvency Law. The CRIA will provide hope and a new lease on life for listed companies and brokers that encounter financial difficulties.
- Real Estate Investment Trusts (REIT) - aims to accelerate the development of real estate industry by offering incentives to eligible REITs or public companies that own and operate income-producing real estate.
- Collective Investment Schemes Law - aims to further promote collective investment schemes, like unit investment trust funds, popularly known as UITFs, by rationalizing the regulatory framework over said investment instruments.
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