Finance Secretary Ralph G. Recto championed the central role of sound corporate governance anchored in sustainability in fostering inclusive growth across Asian economies during the Organization for Economic Cooperation and Development (OECD)-Asia Roundtable on December 11, 2024.
“For we believe that a strong corporate governance framework is the very foundation upon which a thriving investment climate and well-functioning capital markets are built,” he said in a speech delivered by Chief of Staff and Undersecretary Maria Luwalhati Dorotan Tiuseco.
“It is what ensures our capital markets not only fuel the economy but become a pathway for every business and every Filipino to be shareholders in the country’s growth,” Secretary Recto added.
Now in its 25th year, the OECD-Asia Roundtable serves as a regional platform for policy dialogue on corporate governance, corporate finance, and sustainability.
Hosted by the Securities and Exchange Commission (SEC)––an attached agency of the Department of Finance (DOF), this year’s two-day forum highlighted the latest developments in corporate governance in the Philippines and the broader Asian region. It gathered representatives from about 18 countries around the world.
In his welcome remarks on the forum’s opening day, Secretary Recto underscored the urgency for corporate governance structures to evolve with technological advancements, shifting legal frameworks, and dynamic global economic demands.
In line with this, he lauded the OECD’s recent publication of the revised G20/OECD Principles of Corporate Governance, which embeds sustainability as a key element of its framework.
“This underscores the growing importance of Environmental, Social, and Governance [ESG] factors in shaping present and future business models. The Philippines strongly believes that ESG must be at the heart of every business operation,” the Finance Chief stressed.
He further emphasized that sustainability goes beyond accountability and safeguarding the integrity of financial markets—it is about future-proofing economies and enhancing global competitiveness.
“And we believe that sustainability is no longer a mere add-on or an afterthought. It is a strategic guiding principle in every policy we implement and the project we undertake. We cannot treat it any less than that,” he said.
Secretary Recto kicked off the roundtable with the launching of the OECD Capital Market Review of the Philippines, which is the first capital market review conducted by the OECD.
The market review was a product of a series of interviews and consultations as well as a rigorous assessment of regulations that affect the capital markets conducted by the OECD.
It highlights the growing importance of the Philippine economy in the global landscape and offers valuable insights to guide reforms in the country’s financial system to accelerate the development of its capital markets.
