By Juliana Chloe A. Gonzales and Alexandria Grace C. Magno, Reporters
THE Securities and Exchange Commission (SEC) urged listed companies to raise corporate governance standards to regional benchmarks, saying the Philippines continues to lag Southeast Asian peers in attracting international capital.
“We cannot simply expect global investors to adjust to what we want,” SEC Chairman Francisco Ed. Lim said at the Institute of Corporate Directors’ 2026 Golden Arrow Awards on Oct. 23. “On the contrary, we must adjust to what global investors demand. If we want their capital, we must first earn their confidence.”
He added that investor confidence starts with transparency, accountability and compliance with international standards.
Mr. Lim said Philippine companies should aim to rank among the region’s best-governed firms rather than focus solely on collecting awards.
Data from the 2024 ASEAN (Association of Southeast Asian Nations) Corporate Governance Scorecard showed the Philippines ranked fourth among six participating economies with an average score of 89.27, below the regional average of 91.2.
Only six Philippine companies made it to Southeast Asia’s top 50 listed companies. Malaysia had 17 on the list, Thailand had 16, and Singapore had eight.
The Philippines also trailed its neighbors in the broader ASEAN asset class, with 35 qualifying companies compared with 74 from Thailand, 65 from Malaysia and 53 from Singapore.
“We should celebrate the 35 that have made it to the ASEAN asset class,” Mr. Lim said. “But we should also ask a tougher question: Why only 35?”
He said companies in neighboring markets treat corporate governance as a board-level responsibility and a measure of corporate excellence rather than a compliance exercise.
Meanwhile, on the sidelines of the 2026 ASEAN Capital Markets Forum (ACMF) International Conference in Manila last week, Mr. Lim said deeper integration among Southeast Asian capital markets remains a long-term goal but requires markets to improve enforcement, investor protection, resilience and governance standards.
“We have to step up,” he said. “We cannot say the regional market should adjust to us, the global market should adjust. That will never happen.”
“We have to prepare ourselves as a market to stay competitive not only among ourselves but also with our regional peers. Otherwise, we’ll be left behind,” Mr. Lim added in mixed English and Filipino.
He said cross-listings among ASEAN exchanges remain a work in progress but could eventually become more common, making it necessary for Philippine companies and market institutions to prepare.
Mr. Lim also backed efforts to make the domestic market more attractive to issuers so companies would have stronger incentives to maintain local listings.
Mr. Lim identified corporate governance reforms and market development as priorities for the SEC, saying these efforts would help raise market standards.
He said some reforms had faced resistance but challenges were part of the process.
“I know there have been pushbacks, but that’s part of the report,” he said. “You don’t expect reports to be accepted just like that. There will be challenges.”
The ACMF’s 2026-2030 action plan includes studies on ASEAN cross-listings, depositary receipts and regional market indices, as well as the proposed ASEAN Diamonds initiative, a group of well-governed listed companies intended to serve as regional benchmarks for investors and issuers.