THE Philippines may be left behind as Southeast Asian capital markets become more integrated unless it steps up reforms to meet global investor standards.
Speaking to reporters at the 2026 Asean Capital Markets Forum (ACMF) International Conference, Securities and Exchange Commission (SEC) Chairperson Francis Lim said the country must strengthen its capital market to remain competitive with regional peers as the Association of Southeast Asian Nations (Asean) works toward building a unified asset class.
“We have to prepare ourselves as a market to stay competitive. Not only among ourselves, but also with our regional peers. Otherwise, we’ll just be left behind,” Lim said.
He cited reforms involving independent directors and broker-directors as part of efforts to raise market standards, acknowledging that such measures could face resistance from affected stakeholders.
Lim said the Philippines could not expect regional and global markets to adjust to its existing practices as international investor expectations continue to rise.
“The standards of regional and global are increasing,” he said.
He also underscored the importance of investor protection, corporate governance, market resilience and effective enforcement in building confidence among international investors.
Lim said the SEC must ensure that enforcement mechanisms work when problems arise, stressing that investor protection and confidence in a market’s institutions are important considerations for capital allocation.
He said Asean’s strategic direction for 2026 to 2030 includes efforts to build a unified regional asset class, supported by stronger markets, more investment products and companies capable of attracting international capital.
Lim said the initiative was particularly important as individual Asean economies could find it difficult to compete with larger global markets on their own.
He added that stronger regional cooperation could help member countries support one another when external economic pressures weigh on their respective markets.
On the prospect of cross-listing among Asean exchanges, Lim said the development remained a work in progress but that markets should prepare for it.
“Cross-listing, whether we like it or not, may happen,” he said.
He said Philippine companies should have stronger reasons to remain listed domestically, including a more attractive investment environment and reforms that would improve the competitiveness of the local market.
Lim also said the initiative to build an Asean asset class should not be limited to large companies, as smaller listed firms could also contribute to the region’s investment opportunities.
He said the Philippines must take steps to ensure its companies can meet the standards expected by regional and global investors rather than rely on those markets to accommodate domestic practices.
Lim added that capital market development required a coordinated effort beyond the SEC and the Philippine Stock Exchange, describing it as a “whole-of-nation approach” that would require cooperation among regulators, the exchange, companies, brokers and investors.
He also highlighted the need to strengthen the SEC’s technical capabilities through employee training and further education, saying the agency had significant talent that could be developed to support capital market reforms.
Lim said improving the expertise of SEC personnel was important to ensure the regulator could effectively address the technical requirements of capital market development.
He said the Philippines should look beyond short-term costs and consider the long-term benefits of reforms as regional markets become more integrated and competition for global investment intensifies.