THE PHILIPPINES is hoping a code of conduct (CoC) for the South China Sea can be completed when it chairs the Association of Southeast Asian Nations (ASEAN) bloc next year, with a consensus emerging between Southeast Asia and China, its Foreign secretary said on Monday.

Foreign Affairs Secretary Ma. Theresa P. Lazaro said the code being negotiated between China and the 11-member ASEAN should be legally binding.

ASEAN and China pledged in 2002 to create a code of conduct, but it took 15 years to start discussions, and progress until now has been slow.

“I think there is already a sense among ASEAN and China that a code of conduct will be concluded,” Ms. Lazaro told a press conference.

“It is indeed our intention and I think it is also the aspiration of all of ASEAN and even China to finish and to come up with the code.”

Beijing claims sovereignty over most of the South China Sea, which it asserts through a fleet of coast guard and fishing militia that some neighbors accuse of aggression and of disrupting fishing and energy activities in their exclusive economic zones.

Tensions between China and US ally the Philippines have soared in recent years, with both sides accusing the other of territorial infringements. The United States has repeatedly accused China of “destabilizing actions.”

The dispute, however, involves other actors, such as Vietnam and Brunei, making it “imperative” that the long-delayed agreement is finalized, an analyst said.

“A legally-binding document is necessary given that aside from the politico-security facet, we have just also deepened more our ties with PRC under Malaysia’s leadership — the ASEAN-CHINA FTA 3.0,” Josue Raphael J. Cortez, ASEAN Studies lecturer at De La Salle-College of St. Benilde said in a Facebook messenger chat.

“Therefore, a constructive yet pragmatic approach is needed, and such binding CoC may provide the pathway on how we can ensure that we may be cold politically, but economically-speaking, we are more than ready to work and engage.”

Mr. Cortez noted China had argued the Philippines has no power to seek mediation or arbitration as these are not “part and parcel” of the agreements signed by the Southeast Asian nation, in relation to the dispute.

“Therefore, by adopting a framework that would have the integral legal safeguards, we can ensure that we can continue our quest and clamor for our territorial integrity without the other party using the same argumentations.”

Francis M. Esteban, a faculty member at the Far Eastern University Department of International Studies, finds the pursuit of a sea code is a “natural course of action” for the ASEAN bloc, with the Philippines’ chairship.

“However, it is one thing to push for a code of conduct, and another to observe and enforce it,” he said in a Facebook messenger chat. “We have to make sure that all parties will be able to observe and enforce such CoC.”

MYANMAR CONFLICT
In the same briefing, Ms. Lazaro, who has been appointed ASEAN’s special envoy for the conflict in Myanmar, said she hoped to build on the work previous chairs had done to try to start dialogue between warring camps.

ASEAN has grown increasingly frustrated with Myanmar’s ruling military over its failure to implement a five-step peace plan it agreed after chaos erupted in the wake of a coup in 2021.

ASEAN members have stressed that dialogue should be the priority over an election that Myanmar’s generals plan to hold in December.

The credibility of the vote has been questioned, including by the United Nations chief, with the junta’s widely expected to stay in power through proxies. — Chloe Mari A. Hufana and Reuters

By Chloe Mari A. Hufana, Reporter

THE multibillion-peso corruption scandal that has engulfed the Marcos administration puts investor confidence at risk, with analysts warning it could reverse hard-won governance improvements and complicate Manila’s push to attract foreign capital.

Manila’s drive to expand foreign investment and deepen global trade partnerships may face setbacks if the government fails to contain the fallout from the widening corruption scandal, said Josue Raphael J. Cortez, diplomacy lecturer at De La Salle-College of St. Benilde.

He noted investor confidence may weaken as political credibility and policy stability remain top considerations for foreign capital.

“Corruption scandals can certainly affect international standing, particularly in terms of attracting foreign investments,” he said via Facebook Messenger. “Such challenges can debilitate and shift their preference for the country as a potential market.”

The Marcos administration also relies on trade and foreign capital to sustain economic growth, finance infrastructure and social programs and maintain the country’s competitiveness in the region.

The stakes have risen after President Ferdinand R. Marcos, Jr. was implicated in the scandal last Friday by former Party-list lawmaker and one of the central figures in the alleged kickback scheme, Elizaldy S. Co.

The former lawmaker, who previously chaired the House Appropriations Committee, claimed the President received P25 billion through insertions in this year’s national budget, a claim the Palace denied on the same day.

Ederson DT. Tapia, a political science professor at the University of Makati, said such controversies can shift not only investor sentiment but also the strategic calculus of foreign governments watching Manila’s governance trajectory.

“From a diplomatic standpoint, corruption scandals immediately alter how foreign partners assess the Philippines,” he said via Facebook Messenger.

Even if bilateral investment treaties remain intact, he noted, credibility behind those commitments weakens.

Mr. Tapia warned that strategic investments could be delayed or recalibrated, particularly in infrastructure and climate-resilience projects where funding is increasingly tied to governance performance.

If partners feel that procurement systems or oversight mechanisms are compromised, they will either demand stronger safeguards, shift to smaller phased projects or redirect funds elsewhere, he added.

“Scandals damage our domestic institutions and shape how the world calculates trust. And trust, not only treaties, is the true currency of long-term investment and relationships.”

Francis M. Esteban, a faculty member at the Far Eastern University Department of International Studies, noted foreign investors might become skeptical about whether their investments will be used properly or might fall into corruption.

“Investors from the West… May see these corruption scandals as a measurement of our institutions’ incapability to align with their values,” he said in a Facebook messenger chat.

Mr. Esteban stressed that Manila must act both domestically — by probing and punishing liable officials — and diplomatically, by reassuring foreign investors of its credibility to manage funds responsibly.

Gary D. Ador Dionisio, dean of the De La Salle-College of St. Benilde School of Diplomacy and Governance, pointed to the immediate financial repercussions.

He noted that global markets tend to react swiftly to governance risks, often well before domestic political processes catch up.

“International credit ratings such as Moody’s, Standard and Poor, as well as Fitch ratings [have] already downgraded our credit ratings status due to the corruption cases that exploded in the recent months in the Philippines,” he said via Facebook Messenger.

According to Mr. Ador Dionisio, the downgrades have prompted foreign governments and trade partners to scrutinize how the Marcos administration will pursue legal, institutional and moral resolutions through policy and structural reforms.

He noted that these observers are looking for clear signals that Manila intends to rebuild credibility rather than merely manage political fallout.

“This administration must convince its foreign partners that their course actions are acceptable, palatable and justifiable both domestically and internationally,” he added.

Failure to do so, he added, could cast “a huge cloud of doubt” over the government’s legitimacy and stall future trade initiatives, loans and business partnerships with international creditors.