Philippines pushes listed firms to lift governance standards across ASEAN

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Philippines lifts governance standards

Highlights

Philippines ranks fourth in the 2024 ASEAN Corporate Governance Scorecard with an average score of 89.27, below the 91.2 regional average.
Only six Philippine companies are among Southeast Asia’s top 50 listed firms, compared to 17 from Malaysia, 16 from Thailand, and eight from Singapore.
SEC Chairman Lim emphasizes corporate governance reform, market development, and participation in regional initiatives like the proposed ASEAN Diamonds to improve capital market competitiveness.

Governance gaps shape capital market agenda

As reported by BusinessWorld Online, Securities and Exchange Commission Chairman Francisco Ed. Lim says Philippine listed companies need to align more closely with regional and global investor expectations instead of treating governance recognition as an end in itself.

Speaking at the Institute of Corporate Directors’ 2026 Golden Arrow Awards on Oct. 23, Mr. Lim says investor confidence starts with transparency, accountability and compliance with international standards. He says companies should aim to join the region’s best-governed firms, adding that governance in neighboring markets is handled as a board-level measure of corporate excellence rather than only a compliance exercise.

Data from the 2024 ASEAN Corporate Governance Scorecard show the Philippines ranks fourth among six participating economies with an average score of 89.27, below the regional average of 91.2. Only six Philippine companies make Southeast Asia’s top 50 listed companies, compared with 17 from Malaysia, 16 from Thailand and eight from Singapore.

The Philippines also trails regional peers in the broader ASEAN asset class, with 35 qualifying companies versus 74 from Thailand, 65 from Malaysia and 53 from Singapore. Mr. Lim says the result deserves recognition but also underlines the need to ask why more Philippine firms are not meeting the same benchmark.

Regional integration raises pressure on local issuers

On the sidelines of the 2026 ASEAN Capital Markets Forum International Conference in Manila last week, Mr. Lim says deeper integration among Southeast Asian capital markets remains a long-term goal, but markets first need stronger enforcement, investor protection, resilience and governance standards.

He says cross-listings among ASEAN exchanges are still a work in progress but could become more common over time, increasing the need for Philippine companies and market institutions to prepare. He also backs efforts to make the domestic market more attractive to issuers so companies have stronger incentives to keep local listings.

Mr. Lim identifies corporate governance reform and market development as SEC priorities, while acknowledging some measures have met resistance. The ACMF’s 2026-2030 action plan includes studies on ASEAN cross-listings, depositary receipts and regional market indices, alongside the proposed ASEAN Diamonds initiative, a group of well-governed listed companies intended to serve as regional benchmarks for investors and issuers.

In our earlier article on Philippine sovereign bond reforms and capital-market constraints, we explained how the shift to a new pricing convention for peso government bonds and the planned inclusion in J.P. Morgan’s Government Bond Index-Emerging Markets could broaden the investor base and support liquidity. We also noted that these upgrades are not enough on their own: durable gains still depend on fiscal credibility, stronger investor protection and disclosure, and wider reforms that help corporates access funding through deeper, more efficient bond and equity markets.

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