Philippine SEC urges manufacturers to tap capital markets for expansion

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SEC urges capital markets for manufacturers

Highlights

SEC Chairperson Francis Ed. Lim urges manufacturers to utilize securities-based crowdfunding, private placements, or market offerings tailored to company size and readiness.
The SEC's new simplified registration frameworks—SEC FARMS, HOPES, RENT, and POWERS—streamline fundraising and reporting requirements for targeted sectors like agribusiness, hospitals, real estate, and power.
As of Aug. 31, 29,171 manufacturing companies were registered with the SEC, up by 1,331 from last year, with recent fee discounts saving MSMEs P174 million and the public over P325 million.

Funding options and regulatory pathways

As reported by BusinessWorld Online, Securities and Exchange Commission Chairperson Francis Ed. Lim says manufacturers can use securities-based crowdfunding, private placements, and public market fundraising depending on their scale, financing needs, and readiness to meet regulatory standards.

Speaking at the Federation of Philippine Industries Business Summit 2026 last week, Lim says smaller and growing enterprises can consider crowdfunding, private placements, or listings on the Philippine Stock Exchange SME Board, subject to applicable requirements. Larger and more established companies, meanwhile, can raise funds through initial public offerings, bond issuances, and follow-on equity offerings.

Lim also says the SEC has introduced simplified securities registration frameworks for selected industries, including SEC FARMS for agribusiness, SEC HOPES for hospitals, SEC RENT for certain real estate-related securities, and SEC POWERS for the power sector. He says the measures are designed to streamline registration requirements and support capital formation without using a one-size-fits-all approach.

The SEC is also urging manufacturers to strengthen corporate governance, internal controls, and financial reporting so they are better prepared to access market financing, even if a listing remains years away.

Broader business impact and ease-of-doing-business measures

Alongside its capital market push, the regulator is pursuing steps to simplify company registration, lower compliance costs, and widen access to its services. As of Aug. 31, the SEC has 29,171 active registered manufacturing companies, up by 1,331 from a year earlier.

Under the OneSEC ZERO program, qualified applicants can complete company registration within one day across 100 industry classifications, including manufacturing. The SEC's eAMEND platform also lets companies process 28 types of amendments to corporate registration documents online, while micro, small, and medium enterprises may qualify for a 20% discount on incorporation fees, subject to requirements.

Lim says the discounts have generated about P174 million in savings for MSMEs, while lower fees for corporate documents have saved the public more than P325 million. Other measures include higher thresholds for mandatory submission of audited financial statements, the end 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 seeks to let qualified enterprises begin commercial operations upon SEC registration or the issuance of the required primary regulatory license while other registration and permitting requirements are completed in parallel. The proposal remains subject to legal and regulatory approvals and does not automatically exempt businesses from permits or licenses required under existing laws.

Lim says stronger Filipino companies can create jobs, expand demand for local suppliers, and support communities as they scale. He also calls on the Federation of Philippine Industries to help members prepare for expansion and identify regulatory barriers that may limit access to financing.

In our earlier article on planned Philippine bond-market reforms and capital-market constraints, we explained how changes such as a new pricing convention for peso government bonds and expected index inclusion could broaden the investor base and improve liquidity. We also noted that these upgrades alone do not guarantee stronger business investment, because Philippine companies still face high issuance costs, limited secondary-market liquidity, and governance and disclosure gaps that can keep financing out of reach—especially for smaller firms.

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