MANILA, Philippines -- President Gloria Macapagal-Arroyo urged Congress to come up with legislation that will strengthen the equities market, in coordination with the Philippine Stock Exchange (PSE), amid the world financial crisis.

The President cited the PSE's proposals to extend the documentary stamp tax exemption through next year, and the possible reduction of the stock transaction tax by half. These measures, she said, would make the local bourse "more competitive."

"We acknowledge the proposals of the Philippine Stock Exchange (PSE) to strengthen our equity markets against the current global upheaval," she said in a speech after she signed the Credit Information Act in Malacanang on Friday.

"We ask Congress to look closely at their suggestions that require legislation," Arroyo said, as she reminded lawmakers that the measures must be revenue-neutral.

On Monday, the Philippine Stock Exchange Index (PSEi) fell 23 percent, its biggest single-day drop since 1987, as world markets spiraled downwards as the United States headed towards recession.