Outdated regulations holding back PH investment scale, biz leader warns

MANILA – The Philippines must modernize its regulatory environment to attract large-scale investment and compete with Southeast Asian neighbors as it hosts regional leaders this week, the head of a major business group said Friday.

Management Association of the Philippines (MAP) President Donald Lim called for clearer, predictable rules for fast-growing sectors such as digital platforms, mobility and financial services, warning that many still operate under outdated frameworks.

“Investors looking at Southeast Asia don’t just ask whether they can enter a market. They ask where they can scale. Modern, responsive rules are what turn a promising first investment into a long-term regional commitment,” Lim said.

He cited three recent episodes underscoring the need for transparent processes: a multimillion-peso penalty against a motorcycle-taxi platform, a brief nationwide block of chat app Discord after a 24-hour ultimatum from cybercrime authorities, and a central bank push to rapidly cut or waive InstaPay and PESONet transfer fees.

“In each case, regulators were acting on legitimate goals, and businesses wanted to comply. What was missing was a clear, shared playbook,” Lim said.

To boost investor confidence, Lim proposed moving emerging industries from pilot regimes to permanent legal frameworks, adopting graduated enforcement steps before imposing shutdowns, and conducting impact assessments for major regulatory changes.

The appeal comes as net foreign direct investment inflows to the Philippines slipped to $4.1 billion from January to July 2026, down from $5.35 billion a year earlier, while unemployment rose to 5.4 percent in September from 3.8 percent.