SAN FERNANDO CITY, La Union  – The Securities and Exchange Commission (SEC) proudly completed its latest leg of the nationwide Roadshow on Capital Formation for micro, small, and medium enterprises (MSMEs) and startups at the La Union Convention Center on October 10, 2024. This initiative aims to introduce the capital market as an accessible funding source for business expansion. The event drew significant participation, with local business executives, government representatives, and entrepreneurs eager to learn about alternative financing options. Attendees explored various funding avenues, including crowdfunding, which has emerged as a vital resource for startups and MSMEs. SEC Commissioner Javey Paul Francisco emphasized the need to expand the financing instruments available to MSMEs, stating, “MSMEs are the backbone of a resilient national economy, as they drive domestic demand through job creation, innovation, and competition. MSMEs continue to experience credit constraints, tedious documentation, high interest rates, and mandatory collateral requirements.” The Philippine Stock Exchange (PSE) and the Investment and Capital Corporation of the Philippines (ICCP) also played pivotal roles in the event, highlighting the benefits of initial public offerings (IPOs) as a means for enterprises to raise capital and expand their operations. Representatives from both organizations provided insights on how MSMEs can navigate the IPO process, detailing the steps required to list on the PSE and the advantages of becoming a publicly traded company. Governor Raphaelle Veronica “Rafy” Ortega David expressed her gratitude for the SEC’s efforts to bring this initiative to La Union. She highlighted the significance of accessible funding options as businesses continue to expand and grow. The roadshow featured presentations from the Eastern Securities Development Corporation – Round One. Ms. Charmaine Co, Marketing Head, provided insights into the benefits of crowdfunding and shared success stories from businesses that have effectively utilized these platforms to secure capital. Participants also engaged in interactive breakout sessions, where they had the opportunity to consult with SEC, Round One, PSE, and ICCP about tailored financing solutions for their ventures. The SEC has witnessed a surge in the number of businesses leveraging crowdfunding and IPOs as means to secure funding, with 744 companies successfully tapping the capital market since the first crowdfunding license was approved by the SEC in December 2020. This growing trend underscores the potential of the capital market to support the development of MSMEs and startups across the Philippines. This roadshow in La Union is part of the SEC’s ongoing commitment to encouraging small enterprises to explore the capital market as a viable financing option through its Office for the Advancement of Strategic Investments in SMEs (OASIS).      

By Dante Salvana Real estate developers and locators in various economic zones of the Bases Conversion and Development Authority (BCDA) have expressed support for the proposed bills amending Republic Act 7227, stressing that such measure would allow the state-run firm to continue ushering sustainable economic growth, drive investments, and generate jobs for Filipinos. Filinvest Land Inc. (FLI), Ayala Corp., Megaworld Corp., and Hann Development Corp. (HDC), delivered their respective letters of support for House Bill 8505 and Senate Bill 2647, citing BCDA’s track record as a key player in economic development and nation building. As the developer of the 288-hectare mixed-use development Filinvest New Clark City in Tarlac and the 201-hectare leisure estate Filinvest Mimosa+ in Pampanga, FLI described BCDA as a “key progress catalyst” in Central Luzon, and a “steadfast partner” in establishing townships, business hubs, and industrial zones. Hence, Filinvest believes that the continued existence and expansion of BCDA will strengthen its ability to drive economic growth and develop key areas in the country. “The renewal of BCDA’s corporate existence and expanded role under [the bill] will inspire trust and confidence from both local and foreign investors and boost the country’s economy. The extension of BCDA’s corporate existence not only ensures continued progress of the areas within its jurisdiction, but also allows the expansion of its industrial and economic footprint, attracting investors and fostering local economy,” FLI President and Chief Executive Officer (CEO) Tristaneil D. Las Marias said. Ayala also said its partnership with the BCDA for the development of the Bonifacio Global City in Taguig, and its subsidiary, John Hay Management Corp., for the Ayala Land Technohub in Baguio City, has helped stimulate economic growth in these areas and create more jobs for Filipinos. “Thus, we support the proposal to extend the corporate term of BCDA for another 50 years from 2042,” Ayala Corp. President and CEO Cezar P. Consing said. The company also supported the measure to convert a portion of BCDA’s economic zones to alienable and disposable lands as this will enable BCDA to “create more economic and social impact” through the sound conversion of former military bases into productive developments. Megaworld, meanwhile, said its partnership with the BCDA resulted in the development of McKinley Hill, Uptown Bonifacio, and Newport City, which it described as “prime centers of economic development key areas for employment generation.” “We thus welcome the proposal to extend the corporate term of the BCDA and we are confident that the additional term provided to the BCDA would translate to even greater benefits to the country and the Filipino people,” said Kevin Andrew L. Tan, CEO of Alliance Global Group Inc., the parent company of Megaworld. In addition, Tan said the conversion of a portion of BCDA ecozones from leasehold to freehold would make more dynamic and sustainable township developments. He said a freehold residential component would make these ecozones more attractive and competitive as investment destinations. Lastly, Hann Chairman and CEO Dae Sik Han said extending BCDA’s term is vital for project continuity, ensuring the successful execution and completion of long-term initiatives. “This stability is crucial for sustained economic growth and development, providing confidence to partners like Hann Development,”  he said. HDC is the developer of Clark’s first fully integrated development, Hann Casino Resort, and the 450-hectare luxury estate development called Hann Reserve in New Clark City. Senate Bill 2647 seeks to declare a certain percentage of the land area of each BCDA ecozone as alienable and disposable, authorizing its sale for residential use, mixed use, industrial, and institutional purposes. The bill also seeks to extend the BCDA’s corporate term by another 50 years from its current remaining corporate life of 18 years. Its counterpart bill in the House of Representatives, House Bill 8505, was approved on third and final reading in August last year.