He said the sell-off came despite improving corporate earnings, underscoring that “investors aren’t fleeing because of weak fundamentals; they’re fleeing because of weak integrity.”
Lim told members of the Financial Executives Institute of the Philippines (FINEX) that the scandal has “shaken public confidence,” reminding both government and business leaders that when trust breaks down, “capital dries up, and everyone—government, business, and the public—pays the price.”
"The flood control project scandal has shaken public confidence, wiping out an extraordinary P1.7 trillion in market value of our publicly listed companies in just three weeks, despite rising corporate earnings,' Lim said.
" Investors aren’t fleeing because of weak fundamentals; they’re fleeing because of weak integrity. It’s a stark reminder that corruption is a weapon of mass wealth destruction," he added.
To rebuild confidence, the SEC chief said compliance should be seen “not as a bureaucratic hurdle, but as a leadership advantage,” emphasizing that “when markets are trusted, capital flows, and when capital flows, the economy grows.”
Lim outlined recent reforms under his four-month tenure, including lower registration fees for micro, small, and medium enterprises, faster approvals through the OneSEC digital platform, and new incentives for companies entering the capital market.
He said these measures reflect the SEC’s belief that “regulation should empower, not discourage, enterprise.”
He also announced the upcoming Philippine Green Equity Guidelines, which will recognize firms whose revenues come primarily from sustainable activities, naming Maynilad Water Services as the first recipient.
“Of course, we will watch out for greenwashing,” he quipped.
Acknowledging that the stock market remains a laggard, Lim said this “reflects something deeper—a crisis of confidence.” He vowed to strengthen independent directors, reform REITs, and champion financial literacy to restore trust in capital markets.
Lim closed his speech with a metaphor drawn from local wisdom: “As regulators, we must be like bamboo—grounded, resilient, and responsive.” He said the goal is to prove that “in the Philippines, doing good and doing well can truly go hand in hand.”
—Edited by Miguel R. Camus
