The Philippine capital market needs stronger standards and enforcement to remain competitive as Southeast Asian markets become more integrated, Securities and Exchange Commission Chairperson Francis Lim said at a 2026 regional conference.

Key Takeaways

  • Lim said reforms involving independent directors and broker-directors could encounter resistance.
  • ASEAN’s 2026–2030 strategic direction includes building a unified regional asset class.
  • Cross-listing among ASEAN exchanges remains a work in progress, Lim said.

Why the Philippine capital market faces pressure

Speaking at the 2026 ASEAN Capital Markets Forum International Conference, Lim said the Philippines risked being left behind by regional peers unless it prepared to meet rising investor standards.

He identified investor protection, corporate governance, market resilience and effective enforcement as important to international investors’ confidence. He said enforcement mechanisms must work when problems arise because confidence in institutions matters when investors allocate capital.

Lim pointed to reforms involving independent directors and broker-directors, while acknowledging that affected stakeholders could resist changes. He did not specify details of those measures in his remarks.

Regional integration and cross-listing

Lim 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 able to attract international capital. Individual ASEAN economies could struggle to compete with larger global markets on their own, he said.

Cross-listing among ASEAN exchanges remains a work in progress, but Lim said markets should prepare for the possibility. He also said Philippine companies needed stronger reasons to remain listed domestically, including a more attractive investment environment.

The regional initiative should include smaller listed companies as well as large ones, Lim said.

A broader effort to strengthen the market

Lim described capital market development as a whole-of-nation effort requiring cooperation among regulators, the Philippine Stock Exchange, companies, brokers and investors.

He also called for employee training and further education to strengthen the SEC’s technical capabilities and help it address the requirements of market development.

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