Philippines eyes inclusion in JPMorgan EM debt index

The Philippines is targeting inclusion in JPMorgan Chase & Co.’s local-currency emerging-market debt index in 2025. The country aims to attract more foreign investment into its debt market by implementing various financial reforms.

After missing out on inclusion this year, Philippine authorities have been actively engaging with JPMorgan. A survey of investors was conducted mid-year, and the results were released last month.

The government is now focused on implementing measures to boost market liquidity and investor confidence.

Currently, non-resident investors hold only about four per cent of the Philippines’ outstanding debt, compared to higher percentages in neighbouring countries like Indonesia, Malaysia, and Thailand.

To address this, the Bureau of the Treasury has streamlined the tax treaty procedure for non-resident investors, making it easier to claim tax treaty benefits.

The Philippines is also taking steps to revitalise its interest-rate swaps market and expand participation in bond repurchase agreements. These initiatives are aimed at improving the liquidity of the domestic debt market and attracting more foreign investors.

Attribution: Bloomberg

Subediting: M. S. Salama