BICOL Saro Rep. Terry Ridon has called on Securities and Exchange Commission (SEC) Chairperson Francis Lim to clarify a statement he made regarding a ₱1.7-trillion market wipeout.
Ridon argues that Lim’s statement, made during a forum of the Financial Executives Institute of the Philippines (FINEX), does not accurately reflect the current and historical conditions of the Philippine capital market.
Lim attributed the market decline to the flood control project scandal, stating that it had shaken public confidence and wiped out a significant amount of market value.
However, Ridon contends that weak fundamentals, rather than the flood control scandal, are the primary reason for the market’s underperformance.
Ridon points to PSEi movements over various timelines, noting that the market’s weakening predated the scandal. He highlights that the PSEi had already reached a high of 6,077.82 as early as April 11, 2025, and the broader decline began after July 14, two weeks before President Ferdinand Marcos Jr. exposed the flood control corruption scandal.
\Ridon argues that while good governance is important, the responsibility for improving market performance primarily rests with economic managers and private-sector leaders in addressing fundamental growth constraints.
