The Philippine stock market lost a staggering ₱1.7 trillion in value in just three weeks due to eroding investor confidence amid the flood control corruption scandal, according to Securities and Exchange Commission (SEC) Chairman Francis Lim.
Speaking at the annual conference of the Financial Executives Institute of the Philippines, Lim said the controversy has severely shaken public trust despite strong corporate performance.
“The flood control project scandal has shaken public confidence, wiping out an extraordinary ₱1.7 trillion in market value of our publicly listed companies in just three weeks, despite rising corporate earnings,” Lim said.
He emphasized that the sell-off was not due to weak business performance but to “weak integrity.”
“Investors aren’t fleeing because of weak fundamentals; they’re fleeing because of weak integrity. It’s a stark reminder that corruption is a weapon of mass wealth destruction,” he added.
Lim warned that when trust collapses, both the government and the private sector suffer the consequences.
“When trust breaks down, capital dries up, and everyone — government, business, and the public — pays the price,” he said.
