Corporate governance a health check for business: IFC rep

Posted at Mar 23 2011 09:57 AM | Updated as of Mar 23 2011 05:57 PM

MANILA, Philippines - Corporate governance is a health check for business, according to Philip Armstrong, head of the Global Corporate Forum of the International Finance Corporation.

In an interview with Business Nightly on Tuesday, Armstrong shared that the Philippines received only $2 billion out of the over $60 billion in foreign direct investments in the region largely because of perception that governance standards here are not as high as in other competing markets.

While the Philippines has laws that aim to address governance issues, Armstrong said foreign investors have raised concerns about the enforcement of these laws, particularly in areas related to conflict of interest, related party transactions, minority shareholder rights.

"Most investors want to focus on the fundamentals of the business, but corporate governance, in a sense, is a health check for a business. If corporate governance is in good shape, then the investors will then start looking at what really matters, which is the fundamentals of the business," he said. 

Business Nightly airs on ANC at 9 p.m. weeknights.