After nearly nine years at the helm, Ramon Monzon's leadership of the Philippine Stock Exchange (PSE) has not yielded the expected growth. As the bourse introduces a new reform package aimed at enhancing the exchange-traded fund (ETF) framework, the market continues to lag behind its Southeast Asian peers.
Reforms Amidst Ongoing Challenges
Confidence is the most important ingredient in any capital market.
Ramon Monzon, PSE President
Despite multiple reform initiatives over the years, including lowering capital requirements for ETFs, the PSE remains one of the weakest performers in the region. The benchmark index, having closed at 6,052.92 in 2025, is approximately 30% below its 2017 levels.
- Chronic illiquidity persists.
- Foreign participation has declined significantly.
- Only two companies completed initial public offerings in 2025.
While geopolitical events, such as easing tensions between the U.S. and Iran, recently sparked a 300-point surge in the index, such rallies are not indicative of long-term stability. Investors are increasingly skeptical about the effectiveness of the PSE's reforms.
Long-Term Structural Issues
Historically, the Philippine stock market was viewed as one of Asia's promising investment destinations. However, as regional markets like Indonesia and Vietnam continue to thrive, the PSE's lack of a solid IPO pipeline and declining market liquidity raise questions about its future.
Many experts argue that simply introducing new products, such as ETFs, is insufficient to address the root causes of market stagnation. Investors are wary due to ongoing concerns regarding governance standards and market depth.
The Road Ahead
As Monzon's tenure approaches an end, stakeholders are demanding accountability. They want to know if the PSE's stagnation is rooted solely in structural issues or if leadership is also at fault.
Moving forward, the PSE must not only reform its product offerings but also rebuild investor trust. Confidence cannot be legislated through circulars or announced via press releases. True revitalization will require a track record of tangible results.