For Bagong Henerasyon (BH) Party-list Rep. Robert Nazal, the Securities and Exchange Commission’s (SEC) proposal to exempt micro, small and medium enterprises (MSMEs) from mandatory audited financial statements is a "game changer".

Under the SEC proposal, corporations with total assets or liabilities not exceeding ₱3 million will only need to submit annual financial statements certified under oath by their treasurer or chief financial officer, instead of undergoing costly independent audits.

This move will ease costs and promote growth, according to Nazal.

“Many small businesses want to register but struggle with audit costs. This will help them save money, simplify the process, and focus more on running their business,” said the neophyte solon.

“This is the kind of smart regulation our MSMEs need — less red tape, more growth,” he stressed.

Nazal urged the Department of Finance (DOF) to swiftly approve the policy,

noting that the exemption aligns with President Marcos' broader drive for ease of doing business and inclusive economic recovery.

Former BH Party-list Rep. Bernadette Herrera, a long-time MSME advocate, said the move shows “compassion and common sense".

“MSMEs are the backbone of our economy but carry the same burdens as big corporations. Easing requirements doesn’t lower standards but levels the playing field and helps entrepreneurs thrive,” she noted.

Herrera also suggested that the SEC and DOF coordinate with the Department of Trade and Industry to ensure that the new threshold and certification requirements are well-communicated to business owners, especially in the provinces.

Nazal said BH Party-list will continue pushing reforms to simplify registration, taxation and financing for small enterprises.

“Each peso saved on compliance is a peso for hiring or expansion. That’s real inclusive growth,” he said.

The SEC proposal, once approved, will take effect for fiscal years ending on or after Dec. 31, 2025.