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.
