MAP seeks curbs on abrupt regulatory actions
MANAGEMENT Association of the Philippines president Donald Lim stressed that with the looming conclusion of the European Union-Philippines Free Trade Agreement, the country’s businesses should also be ready, competitive and backed by the government, by means of ensuring that power costs are cut and ease of doing business are being enjoyed by local and foreign investors.
Photograph courtesy of Management Association of the Philippines
The Management Association of the Philippines (MAP) is urging the government to impose stricter safeguards against abrupt regulatory decisions, warning that unpredictable enforcement could drive investors to competing ASEAN markets.
MAP President Donald Lim said regulators should adopt clearer compliance procedures, reasonable adjustment periods, and mandatory impact assessments before implementing major policy changes that could disrupt businesses.
“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 on Friday.
He cited recent regulatory actions involving a motorcycle-taxi platform, the temporary nationwide blocking of Discord, and the Bangko Sentral ng Pilipinas’ push to reduce or waive digital fund transfer fees.
Lim said these cases highlighted the need for clearer enforcement procedures, particularly in fast-growing industries such as transportation, digital platforms and financial services.
“In each case, regulators were acting on legitimate goals, and businesses wanted to comply. What was missing was a clear, shared playbook,” he said.
To address these gaps, Lim proposed a graduated enforcement system requiring formal notices, reasonable compliance periods and targeted interventions before regulators resort to suspensions or shutdowns.
He also pushed for impact assessments before major policy changes and permanent regulatory frameworks for industries operating under temporary pilot arrangements.
The call comes as ASEAN attracted a record $243.9 billion in foreign direct investment in 2025, while the Philippines secured about $9 billion.
Philippine net FDI inflows also declined to $4.071 billion in the first seven months of 2026 from $5.350 billion a year earlier.
“We in the private sector are ready to help. We would welcome the chance to work with the government on building rules that grow with our industries and keep the Philippines competitive in ASEAN,” Lim said.