SEC urges Philippine manufacturers to use capital markets for expansion funding
The Securities and Exchange Commission is encouraging Philippine manufacturers to raise funds through capital markets such as crowdfunding and IPOs to finance expansion. SEC Chairperson Francis Ed. Lim highlighted simplified registration frameworks and regulatory relief measures at the FPI Business
The Securities and Exchange Commission (SEC) is encouraging Philippine manufacturers to tap capital markets to finance business expansion, including investments in production capacity, machinery, and new markets. SEC Chairperson Francis Ed. Lim said manufacturers could consider securities-based crowdfunding, private placements, and stock market listings, depending on their size, financing needs, and readiness to meet regulatory requirements.
Speaking at the Federation of Philippine Industries (FPI) Business Summit 2026 last week, Mr. Lim said smaller and growing enterprises could explore crowdfunding, private placements, or listings on the Philippine Stock Exchange (PSE) SME Board, subject to applicable requirements. Larger and more established companies, meanwhile, could raise capital through initial public offerings (IPOs), bond issuances, and follow-on equity offerings.
The SEC has introduced simplified securities registration frameworks for specific industries, including agribusiness, hospitals, real estate companies with rental pool arrangements, and power generation and distribution companies. These initiatives include SEC FARMS for agribusiness, SEC HOPES for hospitals, SEC RENT for certain real estate-related securities, and SEC POWERS for the power sector. The frameworks are intended to facilitate capital raising by streamlining applicable securities registration requirements.
Mr. Lim also urged manufacturers to strengthen corporate governance, internal controls, and financial reporting to improve their readiness to access capital market financing. As of 31 Aug., the regulator had 29,171 active registered manufacturing companies, an increase of 1,331 from a year earlier. Under its OneSEC ZERO program, qualified applicants can complete company registration within one day across 100 industry classifications, including manufacturing.
The SEC’s eAMEND platform allows companies to process 28 types of amendments to their corporate registration documents online. Micro, small, and medium enterprises (MSMEs) may qualify for a 20 per cent discount on incorporation fees. Mr. Lim said the discounts had generated approximately P174 million in savings for MSMEs, while reductions in fees for corporate documents had saved the public more than P325 million.
Other regulatory measures include higher thresholds for mandatory submission of audited financial statements, the discontinuation of monthly compounding of certain penalties, and relief programs for companies with outstanding regulatory obligations. The SEC is also pursuing its proposed One Business Start Date framework, which would allow qualified enterprises to begin commercial operations upon SEC registration while completing other government requirements in parallel.
The SEC is conducting outreach activities, including the Juan with SEC Caravan, capital formation roadshows, CAFE SEC, and SEC CAN!, to inform businesses about regulatory requirements and available capital-raising options. “When a Filipino company grows, it does not grow alone. It creates more jobs, gives suppliers new markets, strengthens communities, and gives families more secure livelihoods,” Mr. Lim said.
