Bagatsing’s melody: Sow stability, reap growth

The finance industry is as tedious as planting; it demands patience, care and resilience.

For Valentino Bagatsing, chairperson (iccp) and CEO of Investment and Capital Corporation of the Philippines, it has meant seasons of sowing and reaping, enduring droughts and welcoming rain, watching trees grow strong and witnessing their leaves fall.

With 42 years of experience in the industry, his extensive background serves as a testament to his dedication in the field. The company he now heads is one of the leading investment houses in the country.

“I started in the US after grad school. I worked in commercial banking and then transitioned to mortgage banking for about eight years. Then I moved here and joined RCBC Capital, where I spent 12 years. And then I was lucky enough to get a stint with the International Finance Corporation (IFC) of the World Bank. So, I spent almost 13 years there,” Bagatsing shares in an exclusive interview with DAILY TRIBUNE’s online program Straight Talk.

“Thirty years. I did stints in Laos, in Vientiane. Emerging economies. I spent four years in Nepal as the country head for IFC Nepal. Four years and then I took a retirement from the World Bank and now I’m with the ICCP,” he added.

His career spans both the world’s most advanced financial markets and some of its most challenging frontiers, from navigating the competitive banking landscape in the United States to leading projects in developing nations like Laos and Nepal.

Over the years, his expertise led him to a crucial place — the capital market. He believes that pushing the capital trade will help the Philippines’ bloom more. “I think the capital market is an important element in any country’s development,” he pointed out.

As ICCP handles this year’s maiden initial public offering (IPO) company, Topline, Bagatsing hopes that many other firms will follow. “So far we’re the only ones who have done an IPO in the Philippines… We’re not having enough IPO this year,” he explained.

Missing the bus

In Bagatsing’s view, pushing for the transparent implementation of policies and reforms, excellent work ethics, and good governance are crucial to improve the market’s current state — factors that he saw in Vietnam’s rise.

“Ten to 15 years ago they (Vietnamese) came here to learn how to set up a stock market. Now they’re five times our size. And they’ve got three times as many listed companies as we do. What makes the Vietnamese the way they are? Why are they so successful? I mean, in whatever endeavors? Because of the control they got. I think their work ethic is something else,” he supposed.

“[The country’s market] it could do better. We have what? 230, 240 listed companies. That’s terrible. Vietnam is 750, Indonesia is 1,000, Thailand is 3,000. And I think we were the first stock market in ASEAN,” he added.

A key aspect that Bagatsing believes will boost the stock market is to educate the public about its intricacies.

Getting small investors for the IPO would significantly stimulate it. “It needs more education because it’s a very important pillar for a country’s growth, the capital market. Education would play a lot of [role]. Show people that it’ll pay,” he said, addressing the segurista trait of Filipinos.

“At the end of the day, a stock market moves based on perception. It’s really the belief that if I put one peso there, it will become P120 tomorrow,” Bagatsing added.

Despite this, Bagatsing is optimistic that under the new Securities and Exchange Commission (SEC) chairperson, Francis Lim, whom he dubs a “capital market champion,” the sector will be pushed into new heights. “Hopefully, we have a new SEC chair who’s a capital market champion. So we’re very excited,” he expressed.

Further, the ICCP chief strongly believes that capital should be placed where it can create the most of its potential and value. “So we really need more real economy stuff going on, building stuff, you know, versus the virtual,” he asserted.

From his critical perspective, Bagatsing believes that “real-world” jobs are needed now more than ever, as many people chase easy money through social media fame and virality. “You need a highly trained, well-educated workforce. I mean, we cannot all be TikTokers,” he said with a laugh.

Climate and infra champ

Just as the local market is essential, so is foreign capital. In Bagatsing’s view, infrastructure is the backbone of growth. “What should the government concentrate on? I think, basic infrastructure,” he proposed.

“I mean, it’s not the secret that we need. We need more logistics, more infrastructure, more roads, more water, more power. Very basic,” basic as it may seem but fundamental for growth, Bagatsing claims.

During his stint in the World Bank, Bagatsing was exposed to a new horizon — climate finance. “What we are missing is if you do your infrastructure right, it can actually help you adapt to climate change,” he shared.

To integrate climate adaptation in the country’s infrastructure and future projects, Bagatsing noted, would be a great way to invite foreign capital.

“So for every infrastructure project you have, you can add a climate dimension, like making the roads more flood-free, doing renewable, sustainable energy, impounding the water, and putting it to use better. So there are so many elements that if you do infrastructure right, it can also help you adapt to the changing climate,” he explained.

“We’re lucky we have so much water. The issue is being able to utilize it. But it’s in the wrong place, it’s in the floods,” the ICCP chair quips.

But to roll out such long-term projects and ensure their success would need policy stability — an area the Philippines lacks.

“It’s tough to implement these long-term projects where it’s like the old Chinese proverb, you plant a tree that you will not enjoy the shade of because these things take a long time. So, the promises for the picking are still far off,” he lamented.

To avoid distractions from endeavors that do not benefit the many is what Bagatsing firmly advocates. “At the end of the day, it’s creating a stable environment and encouraging a sort of real capital to build real infrastructure.”

Creating the right environment for proper thought and electing good leaders to push for good governance are keys to achieving those things, the 42-year finance veteran insists.

The finance industry is as tedious as planting, Bagatsing believes. He treaded this path with patience, care and resilience.

Still, his journey continues in helping push for a stronger economy and more vibrant markets.