‘Sound fundamentals’ – Recollections of Atty. Gabriel C. Singson

IWAS the first Governor of the Bangko Sentral ng Pilipinas (BSP) appointed by former President Fidel V. Ramos after he signed Republic Act 7653, the New Central Bank Act, into law on 14 June 1993. My tenure started from July, 1993, until July, 1999. Previous to that high position created by Congress during FVR’s term, I was the president of the Philippine National Bank which was then a government financial institution (GFI).

IT WAS DURING THAT TIME THAT FVR WAS ABLE TO MAKE HAPPEN ONE OF HIS ADMINISTRATION’S MOST SIGNIFICANT, BUT LESS-KNOWN, ACHIEVEMENTS — THE UNION OF THE MANILA AND MAKATI STOCK EXCHANGES, TO FORM WHAT IS NOW KNOWN AS THE PHILIPPINE STOCK EXCHANGE (PSE).

THAT MERGER PROCESS LITERALLY SPANNED THE ENTIRE PERIOD OF FVR’S PRESIDENCY — TO INCLUDE THE FINAL STEPS LEADING TO THE AWARD OF THE SELF-REGULATORY ORGANIZATION (SRO) CERTIFICATE TO THE PSE IN JUNE 1998 — WHICH, TO ME, TESTED FVR’S CREATIVITY, PATIENCE AND RESOLVE FOR THE BETTERMENT OF OUR COUNTRY AND PEOPLE. SOUND ECONOMIC FUNDAMENTALS

IN FACT, DURING THOSE TIMES WHEN, ALONG WITH TRADE SECRETARY ROY NAVARRO, BANKER ARCHIT BARTOLOME AND FINANCE SECRETARY BOBBY DE OCAMPO, AND OCCASIONALLY ATTY. JUN “KIDLAT” YASAY (EVENTUALLY SEC CHAIRMAN) WITH DTI USEC. (LATER AMBASSADOR) CESAR BAUTISTA, WE MANAGED TO JOIN PRESIDENT FVR’S SCHEDULES FOR GOLF, THE DEVELOPMENT OF THE PSE BECAME PART OF OUR SERIOUS CONVERSATIONS UNDER THE URGENT SUBJECT OF “WHAT SHOULD BE THE SOUND ECONOMIC FUNDAMENTALS OF THE PHILIPPINES?”

Among our usual venues were the 9-hole Malacañang Golf Course at the southside of the Pasig, the Wack Wack West Course in Mandaluyong, and the world-class Mimosa Golf Club in Clark Freeport, Pampanga, where I made a rare (most lucky) hole-in-one in the presence of FVR….. but that’s another story.

ANOTHER FAVORITE SUBJECT WAS HOW COME THE GOOD LORD, IN HIS INFINITE WISDOM, HAD PUT TOGETHER FVR AND ME — TWO TOWNMATES FROM LINGAYEN, PANGASINAN WHO CAME FROM THE SAME PUBLIC ELEMENTARY SCHOOL, AND WHO EVEN HAD THE SAME BIRTHDAY: 18 MARCH!!?? HOW COME!!!??? WHO IS YOUNGER ???? ETC., ETC. (AND THAT’S STILL ANOTHER LONG, LONG STORY…..) BRIEF PSE STORY

AS BACKGROUNDER, JAMES RADA, JR. IN HIS ARTICLE TITLED “HISTORY OF THE PHILIPPINE STOCK EXCHANGE” (WWW. SAPLING.COM, 11 JUNE 2009), RECALLS: US businessmen — in the Insular Life Building on Plaza Cervantes, Binondo. Founders W.P.G. Elliot, W. Eric Little, Gordon W. Mackay, John J. Russell and Frank W. Wakefield said that they wanted a stock exchange that would serve the public, practice ethical standards and uphold good business practices.

The younger Makati Stock Exchange was founded in May 1963, also with five founding members: Miguel Campos, Bernard Gaberman, Aristeo Lat, Eduardo Ortigas and Hermenegildo B. Reyes. Because the Philippines already had an operating stock exchange, there was opposition to a second one. This Exchange moved to its own building on Ayala Avenue in 1971. RADA CONTINUED: A “SHOTGUN WEDDING”

DURING HIS KEYNOTE SPEECH AT THE PSE’S 20TH ANNIVERSARY CELEBRATED AT THE PSE PLAZA TRADING FLOOR AT THE AYALA TRIANGLE IN MAKATI CITY LAST 27 JULY 2012, FVR FONDLY REMINISCED:

Indeed, a unified stock exchange is vital in developing a strong capital market which in turn, is imperative to sustained economic growth.

Unfortunately, in the days that followed, the usual bones of contention surfaced and the union became unstable. Initially, there were bitter debates on where the unified exchange was to be sited. There was disagreement on the computer trading system.

President FVR himself had to personally mediate at several key junctures. He formed a committee of top experts to iron out the differences that had delayed the union. Privately, he persuaded the Manila and Makati Stock Exchange officers to work more closely together and to help fulfill our common vision for a better future for Filipinos. CONSUMMATUM EST?

Finally, on 23 December 1992, we witnessed the official marriage of the Manila and Makati Stock Exchanges, and the coming into being of the PSE.

In spite of formidable challenges, the PSE eventually succeeded, through sheer, determined effort, to operate on the concept of “One Price, One Market.”

Since then, the PSE has gradually but surely professionalized itself. It cast aside ruinous rivalries for the sake of higher national unity. It encouraged companies to make public offerings. It required listed companies to submit periodic reports. It self-regulated and self-disciplined.

INDEED, PHILIPPINE STRENGTH LIES IN THE COLLECTIVE CONFIDENCE OF OUR COMPATRIOTS AND THE INTERNATIONAL COMMUNITY IN OUR COUNTRY’S FUNDAMENTALLY SOUND ECONOMY. THE FACT THAT WE TOOK OUR BITTER MEDICINE AND MADE THE EARLY DARING DECISIONS TO LIBERATE MARKET FORCES AND INSTITUTE STRATEGIC REFORMS HAD WORKED FOR US — LONG BEFORE ADVERSE WINDS BUFFETED ASIA, INCLUDING THE PHILIPPINES.

THEN, AS NOW, FVR ENJOINS EVERY FILIPINO — LEADERS AND ORDINARY CITIZENS ALIKE, YOUNG AND OLD, HERE AND ABROAD — THAT THE STEADY, DETERMINED AND CONSISTENT TASK OF BUILDING UPON OUR GAINS MUST CONTINUE. THE RALLYING CRY FOR EVERY FILIPINOS TO CLOSE RANKS, JOIN HANDS, BUILD OUR NATION INTO ONE SKILLED, PRODUCTIVE AND COMPETITIVE FILIPINO TEAM MUST ALWAYS BE “KAYA NATIN ITO!!! (WE CAN DO IT!!!)” FVR’S NOTES THE ADVENT OF THE PSE’S 25TH ANNIVERSARY DURING THIS MONTH OF DECEMBER 2017, REMINDED US OF A PROMISE FVR HAD SOLICITED FROM OUR DEAR FRIEND GABBY SINGSON TWO YEARS AGO — THAT HE WOULD CONTRIBUTE AN ANECDOTE TO BE INCLUDED IN ANY OF FVR’S FORTHCOMING BOOKS. SO, THIS IS IT! (ITO ‘YON!)

THIS WAS TO BE A FREEWHEELING SORT OF STORY THAT COULD BE HUMOROUS, LIBELOUS, SEDITIOUS, EVEN SUBVERSIVE — FOR AS LONG AS THE ANECDOTE WAS, AT LEAST, FACTUAL. AND, WOULD ADD TO THE DEVELOPMENT OF OUR SOUND FUNDAMENTALS. (PLEASE REVISIT

8 AUGUST 2012).

FOR ALL THESE, FVR THANKS OUR FAITHFUL, PATRIOTIC PHILIPPINE TEAM MATE, ATENEAN GABBY C. SINGSON (18 MARCH 1929 — 29 MARCH 2016).