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IFC, the Securities and Exchange Commission Sign Agreement to Improve Corporate Governance in the Philippines

Manila, the Philippines, May 12, 2016 —IFC, a member of the World Bank Group, today signed a memorandum of understanding with the Securities and Exchange Commission of the Republic of the Philippines to strengthen the country’s regulatory framework and corporate governance practices. The cooperation aims to raise market awareness of good governance to entice more foreign investment to the country.
Under the memorandum, IFC and the Commission will work together to revise the country’s Corporate Governance Code and set best practices for Philippine companies to follow. IFC will facilitate the exchange of information on regulatory reforms between Commission officials and international corporate governance experts.
“We will work together with IFC to improve our regulations and encourage Philippine corporates to adopt best corporate governance practices so that they can reap the benefits,” said Chairperson Teresita J. Herbosa of the Securities and Exchange Commission of the Republic of the Philippines. “These efforts are crucial to the development of a strong and sustainable capital market in the Philippines.”
Numerous studies report that investors have greater confidence in companies with good governance and in markets that are backed by sound legal and regulatory regimes. In a 2002 McKinsey survey, institutional investors said they would pay premiums averaging 22 percent to own well-governed companies in Asia and Latin America. More foreign investment will create jobs, strengthen the business environment, and improve private sector efficacy.
IFC will provide training to Commission officials to help them enhance the country’s corporate governance legal framework and advise them on draft laws and regulations. It will also work with the Commission to organize corporate governance seminars and workshops for Philippine companies.
“By adopting good corporate governance practices, Philippine companies can enhance their competitiveness and attract foreign investment to fund their growth,” said Jane Yuan Xu, IFC Philippines Country Manager. “This will help build a vibrant private sector and lead to sustainable economic development in the Philippines.”
The partnership is part of a country program launched recently by IFC to support the Philippines’ efforts to enhance corporate governance. In addition to working with the Philippine government to improve the country’s regulations and investment climate, IFC also supports the local institute of directors and provides corporate governance advice to Philippine companies.
IFC has contributed to the adoption of 95 corporate governance codes, laws, and regulations in more than 30 countries worldwide. IFC’s Corporate Governance Program in East Asia and the Pacific is funded by the State Secretariat for Economic Affairs of Switzerland.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
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About the Securities and Exchange Commission of the Republic of Philippines
The Securities and Exchange Commission is the Philippines government regulatory agency charged with supervision over the corporate sector, capital market participants, the securities and investment instruments market, and the investing public. The commission’s mission is to develop and regulate the capital market and supervise company registration toward good corporate governance, protection of investors, widest participation of ownership, and democratization of wealth.