By Justine Irish D. Tabile, Reporter
THE government is exploring the creation of an emerging technology board on the Philippine Stock Exchange (PSE) to permit high-growth technology firms to access public capital, the Department of Information and Communications Technology (DICT) said.
DICT Secretary Henry R. Aguda said he’s working with the PSE, the Securities and Exchange Commission (SEC), and the Department of Trade and Industry (DTI) to determine the board.
“So, we’re still conceptualizing,” he told reporters on Monday, noting that the board’s design will likely be inspired by the Nasdaq-style technology board, a US-based exchange known for listing high-growth technology corporations and innovation-driven firms.
“We began talking about it last yr… Right away, we’re still doing the technical evaluation,” he added.
Mr. Aguda said the board goals to advance President Ferdinand R. Marcos, Jr.’s vision of creating the capital market more accessible.
“Second, we should always have an honest-to-goodness technology stock market because, in other countries, it’s the technology that’s driving the [market],” he said. “So, we should always do the identical.”
He added that the federal government plans to finalize policy for the emerging technology board this yr.
“Realistically, we will complete it this yr. Hopefully by the primary half,” he said.
The proposal has received support from PSE President and Chief Executive Officer Ramon S. Monzon and SEC Chairperson Francisco Ed. Lim.
“The 2 of them combined are very progressive. So, I feel it’ll move fast,” Mr. Aguda said.
On the board’s regulatory framework, Mr. Aguda noted that the agencies have yet to define specific rules on public float, minimum market capitalization, and other listing requirements.
He said several Philippine technology corporations are already preparing for potential listings.
“So, there are 15 corporations which have signified interest… but after all, we don’t expect all of them to list; interest is different from actually listing. So, 15 corporations and counting,” he said.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet described the board as a “promising concept.”
“Depending on the way it is designed, the brand new board could potentially encourage local emerging technology corporations to list on the PSE for fundraising,” he said in a Viber message.
He noted that the targeted corporations would profit from more flexible listing, disclosure, and company governance requirements.
“Furthermore, it could help if the federal government would create or sponsor a public-private fund that can put money into PSE-listed technology corporations to spur the expansion of the sector,” he added.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said the board could address “structural weaknesses which have long weighed on the Philippine stock market.”
“At its core, such a board could lower the barriers for high-growth, innovation-driven corporations to access public capital by offering more flexible listing requirements, valuation frameworks, and disclosure rules that higher reflect the realities of tech and digital businesses,” he said in a Viber message.
He added that conservative listing standards have discouraged fast-growing firms from going public locally.
“By broadening the style of corporations that may list, the local course could change into more representative of the fashionable economy relatively than being dominated by mature conglomerates and traditional sectors,” Mr. Arce said.
He said the board could also attract younger investors, foreign funds, and domestic capital currently on the sidelines.
“Even a small variety of credible tech listings could help re-rate market sentiment by shifting perceptions of the PSE from a low-growth, dividend-focused exchange to at least one with longer-term capital appreciation potential,” he said.
Nonetheless, he cautioned that the board’s success will depend upon execution and credibility, with investors expecting strong governance, clear risk disclosures, and robust regulatory oversight.
“If the board is perceived as a dumping ground for weak or speculative issuers, it could damage confidence relatively than enhance it,” he said.
“Coordination amongst regulators will subsequently be crucial to make sure consistent rules on disclosure, investor sustainability, and post-listing compliance, while allowing enough regulatory innovation to support latest business models,” he added.
Meanwhile, the DICT on Monday signed a memorandum of understanding with the Mental Property Office of the Philippines to strengthen support for digital infrastructure innovations through a responsive and robust mental property system.
Under the partnership, the 2 agencies will work together to reinforce the technical capability of examiners who assess and manage innovations in artificial intelligence, blockchain, the Web of Things, big data, and other emerging ICT fields.