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Republic of the Philippines Strengthening Resilience, Fostering Inclusive Growth
Disclaimer: If you are not the intended recipient, any unauthorized disclosure, copying, dissemination or use of any of the information is strictly prohibited. This presentation contains data sourced
from various Philippine government, multilateral/bilateral and private sector websites/reports as of 24 April 2019. These sources have been cited where possible.
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Disclaimer
This presentation has been prepared by the Republic of Philippines (the “Republic”). This presentation is being presented solely for
your information and is subject to change without notice. Any decision to participate in the bond offering should be made solely on the
basis of the prospectus supplement and the accompanying prospectus. By accessing this presentation, you are agreeing to be bound
by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.
This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of
historical facts are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that
may cause the actual results, performance or achievements of the Republic to be materially different from those expressed or implied
by the forward-looking statements.
The Republic has filed a registration statement (including the prospectus) and a prospectus supplement with the U.S. Securities and
Exchange Commission (the “SEC”) for the offering to which this presentation relates (the “offering”). Before you invest, you should read
the latest prospectus in that registration statement (file no. 333-208780), the prospectus supplement and other documents that the
Republic has filed with the SEC for more complete information about the Republic and the offering. You may get these documents for
free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Republic, any underwriter or any dealer participating in
the offering will arrange to send you the prospectus if you request it by calling, Deutsche Bank toll-free at 1-800-503-4611.
A prospectus of the Republic, dated January 2, 2018, is available from the U.S. Securities and Exchange Commission’s website at
https://www.sec.gov/Archives/edgar/data/1030717/000119312518000431/0001193125-18-000431-index.htm
This presentation may not be reproduced, disseminated or quoted without the prior written consent of the Republic. Relaying copies of
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Transaction Summary
Summary Terms for the New Issue
Issuer Republic of the Philippines (the "Republic")
Expected Issuer Ratings Moody’s: Baa2 Stable / S&P: BBB Positive / Fitch: BBB Stable
Issue Ratings Moody’s: Baa2 / S&P: BBB / Fitch: BBB
Status Fixed Rate, Senior Unsecured
Format U.S. SEC-Registered
Tenor [8 Years]
Size EUR Benchmark
Use of Proceeds The Republic intends to use the net cash proceeds from the sale of the global bonds for general purposes of the
Republic, including budgetary support.
Other Terms EUR $100k x US$1k / New York Law / Luxembourg Stock Exchange / Euro MTF
Joint Global Coordinators Deutsche Bank (B&D) and UBS
Joint Bookrunners and Lead
Managers BNP Paribas, Credit Suisse, Deutsche Bank, Standard Chartered Bank and UBS
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Table of Contents
I. Strengthened Credit Profile 5
II. Favorable Macroeconomic Trends 8
III. Demonstrated External Resiliency 14
IV. Sound and Stable Financial System 17
V. Sound and Strengthened Government Finances 19
VI. Accelerated Infrastructure Development 26
VII. Firm Institutional Foundations Through Structural Reforms 29
VIII. Socioeconomic Agenda of the Duterte Administration 33
IX.
The President and the Economic Team
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31
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50
250
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144
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186
186
Strengthened Credit Profile
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Duterte Administration: Reform-Minded Leadership Focused on Delivering
Results
Continued sound
macroeconomic
management yields
strong results
One of the fastest growing economies in the Asia Pacific region
• Rapid and more broad-based economic growth
o GDP growth of 6.2% in 2018 led by investments, which contributed 4.0 ppt to growth
o 20 years of uninterrupted economic expansion
Moderate inflation pressures in 2018
Resilient external payments position amid global uncertainties
Structural current account flows from steady remittances (3.2% yoy in 2018 and 4.4% yoy in Jan 2019), and rising revenues from IT-BPO (2.9% yoy in 2018) and
tourism sectors (4.2% yoy in 2018)
Sound banking system
Business optimism in the Philippines highest in Southeast Asia and 6th among 35 economies covered according to Grant Thornton’s International Business Report H2
2018 Economic Update
Increasing net FDIs on account of improved investment environment.
Fiscal initiatives
strengthen public
finances and
provide growth
impetus
Firm commitment to fiscal sustainability
• Passed the Tax Reform for Acceleration and Inclusion (Package 1A)
• Passed the “Tax Amnesty Act” (RA No. 11213), an act enhancing revenue administration and collection by granting an amnesty on all unpaid internal revenue taxes
imposed by the national government for taxable year 2017 and prior years with respect to estate tax, other internal revenue taxes and tax on delinquencies (Package
1B) (signed into law on 14 February 2019)
• Passed the Social Security Act of 2018 (signed into law on 7 February 2019)
Long history of prudent fiscal management
Streamlined budgeting and disbursement processes
• Simplified Implementing Rules and Regulations (IRRs) of the Government Procurement Reform Act
Aims to stop underspending on infrastructure through budget allocations
Massive
infrastructure
development
Invest heavily in infrastructure through “Build Build Build” program
The Public Investment Program (PIP) 2017-2022 contains the list of priority programs and projects to accelerate infrastructure development
• Target USD160bn infrastructure spending for 2017-2022 increases public investments on infrastructure to about 7.0% of GDP by 2022
Huge increases in the 2019 proposed budget of two major infrastructure agencies: Department of Public Works and Highways (25.8% growth) and Department of
Transportation (89.3% growth)1/
Robust growth of disbursements on infrastructure and other capital outlays at 41.3% in FY2018
Sustained reform
momentum
Pursue further structural reforms, e.g., tax reform packages: Package 1C on adjustments in the Motor Users Vehicle Charge; Package 2 on corporate taxation and fiscal
incentives; Package 2+ on mining, coal and a revisit of alcohol and tobacco taxes; Package 3 on property taxation; Package 4 on financial and capital income taxation;
and strengthen the country’s gross international reserves (GIR) by making the sale of gold from small-scale miners to the Central Bank of the Philippines, Bangko Sentral
ng Pilipinas (BSP) exempt from income and excise taxes
Passed the Universal Health Care Act (signed into law on 20 February 2019)
Passed the Amendments to the BSP (central bank of the Philippines) Charter (signed into law on 14 February 2019)
Passed the Rice Tariffication Law (signed into law on 14 February 2019)
Passed the Bangsamoro Organic Law
Passed the National ID System
Launched the Capital Markets Development Roadmap
Further liberalization of FX regime
Improving the business environment through streamlined processes and opening more areas for foreign investments
• Passed the Ease of Doing Business and Efficient Government Service Delivery Act
• Issued the 11th Regular Foreign Investment Negative List (RFINL)
Passed the National Payment Systems Act ; BSP as overseer of the payments system
Transformative policies anchored on domestic-led growth and continuing structural reforms
1/ Growth is based on cash-based equivalent of 2018 monthly disbursement program vs. 2019 cash-based proposed budget; Source: Department of Budget and Management (DBM) Technical notes on the 2019 proposed national budget
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Metric 2013 2014 2015 2016 2017 2018
Credit Ratings
• Moody’s
• S&P
• Fitch
Baa3/positive
BBB-/stable
BBB-/stable
Baa2/stable
BBB/stable
BBB-/stable
Baa2/stable
BBB/stable
BBB-/positive
Baa2/stable
BBB/stable
BBB-/positive
Baa2/stable
BBB/stable
BBB/stable
Baa2/stable
BBB/positive
BBB/stable
Real GDP Growth Rate (%) 7.1 6.1 6.1 6.9 6.7 6.2
GDP Per Capita* (USD) 2,768 2,849 2,883 2,953 2,989 3,104
GNI Per Capita * (USD) 3,364 3,453 3,487 3,555 3,594 3,720
Inflation Rate (2012 = 100) (%) 2.6 3.6 0.7 1.3 3.2 5.2
3.8 (Jan-Mar 2019)
National Government Interest Payments
(as % of Revenues) 18.8 16.8 14.7 13.9 12.6
12.3
15.5 (Jan-Feb 2019)
Fiscal Balance (as % of GDP) -1.4 -0.6 -0.9 -2.4 -2.2 -3.2
Tax Revenue (as % of GDP) 13.3 13.6 13.6 13.7 14.2 14.7
General Government Debt (as % of GDP) 39.3 36.4 36.2 34.6 36.6 36.3 (end-Sep)
Gross International Reserves (USD bn) 83.2 79.5 80.7 80.7 81.6 79.2
83.6 (end-Mar 2019)
‒ Import Cover (months) 11.6 9.9 9.9 8.8 7.7 7.0
7.4 (end-Mar 2019)
Overseas Filipinos’ Cash Remittances (USD bn) 23.0 24.6 25.6 26.9 28.1 28.9
4.8 (end-Feb 2019)
Foreign Direct Investments (USD bn) 3.7 5.7 5.6 8.3 10.3 9.8
0.6 (end-Jan 2019)
Current Account (as % of GDP) 4.2 3.8 2.5 -0.4 -0.7 -2.4
External Debt (as % of GDP) 28.9 27.3 26.5 24.5 23.3 23.9
Sustained Strengthening of Philippines Credit Profile
Source: BSP’s Selected Economic and Financial Indicators, Department of Finance (DOF), Bureau of Treasury (BTR)
*at current prices
33
54
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31
31
254
195
37
246
139
50
250
192
144
244
186
186
Favorable Macroeconomic Trends
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Philippines is One of the Fastest Growing Economies in Asia
GDP growth of select Asian economies
Real GDP growth (%)
ROP’s GDP growth in 2018 of 6.2% is among the fastest in the region
The Duterte Administration aims for more robust and sustained growth through the medium-term supported by sustained implementation of structural reforms, among them comprehensive tax reform, accelerated infrastructure development, human capital development, easing foreign investments restrictions, reducing cost of doing business, and strengthening of agro-industrial linkages
Rating: Moody’s/S&P/Fitch
Source: Philippine Statistics Authority (PSA) National Accounts; Bloomberg L.P.; BSP Selected Philippine Economic Indicators (SPEI)
8.2
6.8 6.9 6.7
5.1 5.1
3.9
7.2 7.1
6.6 6.2
5.2
4.7
4.1
India(Baa2/BBB-/BBB-)
Vietnam(B1/BB-/BB)
China(A1/A+/A+)
Philippines(Baa2/BBB/BBB)
Indonesia(Baa3/BBB-/BBB)
Malaysia(A3/A-/A-)
Thailand(Baa1/BBB+/BBB+)
2017 2018
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0.2 0.4 0.1 0.3 0.1
0.7
1.2 2.4
2.4 2.3
1.8
2.8
3.8 3.9
3.8
1990-1999 2000-2009 2010-2017 2017 2018
Agriculture Industry Services
2.5 3.3
4.0 4.1 3.8
0.3
0.3
0.7 0.7 1.4
0.4
0.7
3.0 2.6
4.0
-0.3
0.2
-1.3 -0.8
-2.9
1990-1999 2000-2009 2010-2017 2017 2018
Consumption Government Investment Net Exports Statistical Discrepancy
69.3
69.5
68.9
68.5
10.3
10.5
10.5
11.2
24.2
28.2
28.9
31.0
-3.8
-8.2
-8.4
-10.7
Household Expenditure Government Spending
Capital Formation Net Exports
Economic Rebalancing Towards a More Broad-Based Growth
Capital formation continues to accelerate
Gross capital formation (PHP bn, constant prices)
… and is an increasingly key driver of growth
GDP breakdown by expenditure (%, constant prices)
2011 2012 2013 2014 2015 2016 2017 2018
Construction Durable Equipment Others
+2.8% -4.3%
+27.9% +4.2%
Consumption, investment and services remain as major drivers of growth
GDP breakdown by component
1,553 1,490
1,165 1,217
1,838 +18.4%
Contribution to growth: supply side (%) Contribution to growth: demand (%)
2,290
2016
2015
+9.4%
2017
2.8
4.5
6.4 6.7
6.2
2,505
2,852.3
+13.9%
6.7 6.4
4.5
2.8
2018 +24.5%
Source: PSA National Accounts; Note: Numbers may not add up due to rounding
Statistical Discrepancy is the difference between the estimates of GDP using the production and expenditure approaches. To ensure the reconciled/balanced production and expenditure sides of GDP in the new series, the Supply and Use Table (SUT) was compi led, to
produce a zero statistical discrepancy for the2000 benchmark year while ensuring the conceptual soundness of the national accounts. For other years, the target is to keep the statistical discrepancy to GDP ratio to a minimum, both at current prices and at constant prices.
6.2
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Manufacturing 38.8%
Financial and Insurance
11.4%
Arts, Entertainment and
Recreation 8.1%
Water Supply, Sewerage, and
Waste Management
9.7% Real Estate 8.7%
Wholesale and Retail Trade
5.7%
Mining and Quarrying
3.3%
Construction 1.9%
Others 12.2%
1.9
10.0 10.4
22.4
36.1 44.9
Malaysia India Vietnam* Philippines Thailand Indonesia
*Q1-Q3 2018 data
Rising Investments Highlight Confidence in Philippine Growth Prospects ROP gaining attractiveness as an FDI destination
Source: PSA, NEDA, BSP, UNCTAD, Grant Thornton International Business Report, * BOP Concept; ** Investment approved by the Philippines’ Investment Promotion Agencies – Board of Investments (BOI), Clark Development
Corporation (CDC), Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), Authority of the Freeport Area of Bataan (AFAB), BOI-Autonomous Region of Muslim Mindanao (BOI-ARMM), and Cagayan
Economic Zone Authority (CEZA)
H2 2018 Economic Update of Grant Thornton’s International Business Report cites business optimism in the Philippines strongest in Southeast Asia.
Business executives expect “to earn more, charge more and employ more” in 2019
Average Growth of FDI, 2013- 2018 (%)
1.1 2.0
3.2 3.7 5.7 5.6
8.3 10.3 9.8
0.6
2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan-19
Net Foreign Direct Investment (FDI) Flows* (USD bn)
Investors continue to place their bets on ROP
Sustained inflows from both foreign and local investors particularly in manufacturing to support higher growth
Net FDI Average Percent Share to Net Equity by Industry, 2012-2018
Manufacturing has been getting a big share of interest
Note: Values may not sum up due to rounding
Total Approved Investments** (PHP bn)
196.1 258.2 289.5 274.0 186.9 245.2 219.0 105.7 179.0
346.6
488.9 408.7 480.0 569.0 441.7 466.9 803.0
905.2
2010 2011 2012 2013 2014 2015 2016 2017 2018
Filipino Foreign
+19.3% YOY
growth in 2018
65% of Philippine respondents (net) expected their business revenue to increase (5th in global rankings)
Top 3 globally in terms of plans to increase exports. Philippines net of 47% topped ASEAN’s 35% and global 21%
Top 3 globally, Philippine business executives expect to hire more people
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26.8
37.0
6.2
38.4
42.6
32.8
13.4
2.0 0.9
0.0
20.0
40.0
60.0
80.0
100.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
College Post Secondary High School Elementary (with SPED) No Grade Completed
Sustaining the Growth Momentum by Expanding Productive Capacity
Incremental Capital-Output Ratio
Source: BSP, PSA, Oxford Economics/Haver Analytics
Philippines has the highest total factor productivity (TFP)
among Asian Countries
by Oxford Economics
Quality of employment improving
Employment Share by Class of Workers
Robust labor dynamics
Employment share by educational attainment
52.2
63.8
31.5
26.9
4.3
3.6 12.1 5.6
0.0
20.0
40.0
60.0
80.0
100.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Wage and salary workers Self-employed Employee in own family Unpaid Worker
9.5 6.4
4.2 3.9
0
2
4
6
8
10
1989 - 1992 1993 - 2001 2002 - 2009 2010 - 2018
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2.6 3.6
0.7 1.3
3.2
5.2
3.8
2013 2014 2015 2016 2017 2018 Jan-Mar 2019
Inflation target band Headline CPI
Manageable Inflation Environment Supportive of Growth
Supply-side factors underpin inflation in 2018
Headline CPI (yoy, %), 2012=100
The BSP has taken decisive and measured policy actions to: 1) anchor inflation expectations; and 2) address any possible second-round effects.
The Development Budget Coordination Committee (DBCC) in coordination with the BSP decided to set the inflation target at 2.0-4.0 percent for 2021-
2022
Following were select non-monetary measures implemented to help tame inflation, which was supply side driven in 2018:
President Duterte signed Administrative Order No. 13 removing non-tariff barriers and streamlining administrative procedures on the importation of
basic agricultural commodities;
Issuance of certificates to allow distribution of imported fish to wet markets;
Release of rice supply to National Food Authority (NFA) warehouses and facilitation of contracted rice imports;
Simplification of licensing procedures for importing rice;
Monitoring by PNP and NBI of rice from ports to NFA to warehouses and retail outlets;
Direct selling by producers of chicken to consumers in markets to reduce gap between the farm gate and retail prices;
Open importation of sugar to direct users to moderate cost to consumer;
Prioritization of release of food items in ports;
Rice tariffication (signed into law on 14 February 2019);
Pantawid Pasada (subsidy for public transport); and
Unconditional cash transfers.
Economic Team issued a Joint statement on 5 February 2019 inflation: 1) lowest in past ten months; 2) considerably lower than the 5.1 percent reading
in the previous month; and 3) slightly below the 4.5 percent median market forecast.
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31
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50
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192
144
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186
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Demonstrated External Resiliency
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3.5 3.9
4.3 4.7 4.8
5.4 6.0
6.6 7.1
2.5 3.0
3.8 4.4 4.8
5.0 4.9
6.7 6.9
2010 2011 2012 2013 2014 2015 2016 2017 2018
Arrivals Receipts
+7.7% YOY growth
in arrivals in 2018
12.8 14.5
16.4 17.3 18.8 20.1 21.4 23.0 24.6 25.6 26.9 28.1 28.9
4.6 4.8
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan-Feb2018
Jan-Feb2019
+3.0% YOY
growth in
Feb 2019
Business Process Outsourcing (BPO), the tourism sector, and remittances, act as additional and strong economic engines that help
ensure resiliency of ROP’s external payments position against external stresses.
Robust Structural Current Account Inflows
Sources: BSP, Department of Tourism, IBPAP
BPO is a strong driver of employment and revenues
BPO employment (‘000s) and revenues (USD bn)
Remittances enjoy sustained growth over the years
Overseas Filipinos' cash remittances (USD bn)
Tourism industry provides key support to the current account
International visitor receipts (USD bn) and arrivals (mn)
Note: BPO revenues are lodged under technical, trade-related, and other business services and computer services (BOP concept); BPO employment data is from IT and Business Process Association of
the Philippines (IBPAP)
+4.1% YOY growth
in receipts in 2018
2.3 3.5 5.3 7.7 9.5 11.2 12.5 14.2 18.0 17.9 20.1 20.6 21.2
236 298 371 424
527 640
777 858
958 1,044
1,146
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenues Employment
+2.9% YOY growth in
revenues in 2018
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0.6 0.6 0.7 0.7
0.8 0.9
1.1
PhilippinePeso
MalaysianRinggit
KoreanWon
ChineseRenminbi
IndonesiaRupiah Thai Baht
JapaneseYen
18.5 23.0 33.8 37.6 44.2 62.4 75.3 83.8 83.2 79.5 80.7 80.7 81.6 79.2 83.6
4.6 5.1
6.7 6.4
9.2
10.4
11.6 11.5 11.6
9.9 9.9 8.8
7.7 7.0 7.4
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 end-Mar2019
International reserves Import cover
61.6 61.4
66.5 65.2 64.7
73.6 75.6 79.9 78.5 77.7 77.5 74.8 73.1
79.0
59.7
50.2 44.5
37.6 38.4 36.9 33.7 32.0
28.9 27.3 26.5 24.5 23.3 23.9
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
External Debt External Debt Ratio
Resilient External Payments Position Shields Economy from External Shocks
Reserve buffer provides protection against external payments
shocks…
International reserves (USD bn) and months of import cover
Prudent external debt burden underscores the health of external finances
External debt (USD bn) and external debt/GDP (%)
Source: BSP SEFI, Bloomberg, BSP staff calculation
… while helping smoothen volatility in the foreign exchange
market by enabling the necessary adjustments in a continued
volatile global environment
Volatility (Year-to-date as of 24 April 2019)
33
54
111
219
31
31
254
195
37
246
139
50
250
192
144
244
186
186
Sound and Stable Financial System
18
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6,706
7,867
9,018 8,852
8,845
1.4 1.2 1.3 1.5 1.6
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan-19 Feb-19
Total Loans Outstanding (in PHP bn) NPL, Gross ratio (in %)
14.8
15.4
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Solo basis Consolidated basis
+9.3% YOY growth in
deposits (2018)
BSP Regulatory Requirement: 10%
International Standard: 8%
Sound Banking System Effectively Funds Productive Sectors
Solid asset growth
Total Asset and Deposit Levels (PHP bn) of U/KBs
Improved quality of loan portfolio
Total Loans Outstanding (PHP bn) and NPL ratio (%) of U/KBs
Strong capitalization well above international norms
Capital Adequacy Ratio (%) of U/KBs
Source: BSP
Note: UK/Bs – Universal and Commercial Bank
Credit is channeled towards productive sectors
Outstanding Loans of U/KBs
The BSP became a reporting country to the Bank of International Settlement
in 2018, joining an elite group of less than 50 jurisdictions worldwide which
report cross-border banking statistics as part of the global database
Cross-border banking data maintained by the Bangko Sentral ng Pilipinas
(BSP) was judged as meeting the rigorous BIS standards for completeness
and quality
Sectors Feb 2019 (PHP bn)
Share to Total
(Net of RRPs,%)
Loans to Productive Sector 7,251.5 88.4
Real Estate Activities 1,397.0 17.0
Wholesale and Retail Trade, Repair of Motor Vehicles, Motorcycles 1,119.0 13.6
Manufacturing 1,065.5 13.0
Electricity, Gas, Steam and Air-Conditioning Supply 922.2 11.2
Financial and Insurance Activities 738.6 9.0
Information and Communication 302.5 3.7
Transportation and Storage 267.7 3.3
Construction 300.7 3.7
Agriculture, Forestry and Fishing 194.6 2.4
Other Community, Social & Personal Activities 114.2 1.4
Others 829.7 11.4
Loans to Household Consumption 675.3 8.2
Loans to Residents 7,926.8 96.6
Loans to Non-Residents 278.1 3.4
Total Loans to Residents and Non-Residents 8,204.9 100.0
12,302 13,763
15,421 15,107 15,192
9,483
10,614
11,596
11,389 11,422
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan-19 Feb-19
Total Assets (in PHP bn) Deposits (in PHP bn)
33
54
111
219
31
31
254
195
37
246
139
50
250
192
144
244
186
186
Sound and Strengthened
Government Finances
20
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206 201
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Strong revenue performance due to intensified tax administrative reforms and TRAIN implementation
Sound Fiscal Position Creating Fiscal Space for Productive Public Investments
Robust growth of public spending driven by infrastructure and capital outlays due to streamlined procurement system
1DBCC approved Medium-Term Fiscal Program on October 16, 2018 NA Not Available
Note: Some values may not sum up to exact figure due to rounding
Source: Department of Finance (DOF), Department of Budget and Management (DBM) and Bureau of the Treasury (BTr)
National Government Fiscal Performance
Particulars
2018 Actual 2018 Program
PHP bn 2018 vs 2017
YoY Growth (%) % of GDP PHP bn1
YoY Growth
(%)2 % of GDP
Total Revenues 2,850.2 15.2 16.4 2,819.7 14.0 16.1
Tax Revenues 2,565.8 14.0 14.7 2,650.8 17.8 15.1
Bureau of Internal Revenues 1,951.9 10.1 11.2 2,043.6 15.3 11.7
Bureau of Customs 593.1 29.4 3.4 584.9 27.7 3.3
Non-Tax Revenues 284.3 27.8 1.6 168.8 (24.1) 1.0
Bureau of the Treasury 114.2 14.3 0.7 55.8 (44.2) 0.3
Privatization 15.7 1,786.2 0.1 2.0 141.0 0.0
Expenditure 3,408.4 20.7 19.6 3,346.5 18.5 19.1
Surplus/(Deficit) (558.3) 59.2 (3.2) (526.8) 50.2 (3.0)
Primary Surplus/(Deficit) (209.0) 421.4 (1.2) NA NA NA
Nominal GDP 17,422.82 17,510.5
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68.5
61.4
53.9 54.7 54.8 52.4 51 51.5
49.2
45.4 44.7
42.1 42.1 42.3 41.9
59.2
51.6
44.2 44.2 44.3 43.5
41.4 40.6
39.3 36.4 36.2 34.6
36.6 36.3 p/
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 end-Sep2018
end 2018
National Gov't Debt General Gov't Debt
Sustained decline in debt/GDP ratio
Government debt (% of GDP)
p/ preliminary
Sources: DOF, BTr
Long History of Prudent Fiscal Management Supports Long-term Debt
Sustainability
22
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153
205 63 72
82 84 86
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3
15 157 88
255 153 102
Budget Appropriations for 2019
The President signed on April 15 the 2019 General
Appropriations Act amounting to PHP3.757tn but vetoed
PHP95.4bn of infrastructure projects that are not among the
budget priorities for 2019.
The increased disbursement will be supported by projected
growth in revenues of 13.5%. Efficient and successful collection
of projected revenues is vital to support and implement the
budget.
Government spending will be largely driven by the massive
infrastructure and human resource investments, particularly over
Build Build Build Program, and social protection, among others.
The education sector remains the top recipient of the budget.
Investment in sufficient and quality infrastructure will increase
economic activity through improved mobility, connectivity and
sustainability across the country. Public infrastructure spending
in 2019 is estimated to generate about 1mn jobs.
Department of Public Works and Highways will provide
network development that would include widening of roads,
construction of by-pass and diversion roads,
flyover/interchanges/underpasses/ long span bridges, among
others.
Bulk of the Department of Transportation’s budget will fund its
various railway, air transport and sea transport projects.
2019 National Budget
Source: DBM, 2019 President’s Budget Message
Increased allocations to improve public infrastructure, eradicate
poverty and maintain peace and order
2019 Proposed National Budget by Sector, % share
2018 2019
Social Services Economic Services Defense
General Public Services Debt Burden
PHP3,323.7bn
PHP3,757.7bn
5.0%
18.9%
11.0%
38.7%
26.8%
4.5%
18.9%
11.2%
36.7%
28.4%
23
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Strong Bias for Domestic Sources of Financing to Minimize FX Risks
Strategic Financing Program
Particulars (in millions PHP) Actual
2015
Actual
2016
Actual
2017
Actual
2018
Program
2019
NET FINANCING 242,851 330,939 758,929 783,277 1,042,631
External (Net) 64,782 -24,113 27,569 191,752 140,003
External (Gross) 189,538 149,523 168,103 303,077 282,734
Less: Amortization 124,756 173,636 140,534 111,325 142,731
Domestic (Net) 178,069 355,052 731,360 591,525 902,629
Domestic (Gross) 420,072 357,497 733,569 594,474 906,154
Treasury Bills -17,303 23,501 26,433 179,937 54,482
Fixed Rate T Bonds 437,375 333,996 707,136 414,537 851,672
Less: Net Amortization 242,003 2,445 2,209 2,949 3,525
Gross Borrowing 609,610 507,020 901,672 897,551 1,188,888
Total Amortization 366,759 176,081 142,743 114,274 146,256
Financing Mix (Domestic : External) 69:31 71:29 81:19 66:34 76:24
Source: Bureau of the Treasury, Budget of Expenditures and Sources of Financing (BESF) FY 2019
Note: Amounts net of bond exchange; domestic amortization includes maturing bond obligations for the year, net of amount serviced by the Bond Sinking Fund
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52 56 56 59 57 56 58 58
64 66 67 65 65 67 66
48 44 44
41 43 44 42 42
36 34 33 35 35 33 34
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
External Domestic
4 0.9
96 99 100 100 100 100 100 100 100 100
2005 2010 2011 2012 2013 2014 2015 2016 2017 2018
Long-term: >10yrs Medium-term: 1yr to 10yr
30
19
10 8 9 7 7 7 7 10
41
26
20 14 12 10 10 10
18 19
29
54
70
78 79 82 83 84
75 71
2005 2010 2011 2012 2013 2014 2015 2016 2017 2018
Long-term: >10yrs Medium-term: 1yr to 10yr Short-term: <1yr
Ample domestic liquidity allows ROP to rely on domestic market to
fund majority of its requirements while minimizing FX risks
Long-dated debt profile reduces refinancing risk
Unless otherwise indicated, graphs pertain to National Government (NG) debt
Source: Bureau of the Treasury, BSP
Total debt breakdown (%)
Domestic debt breakdown (%) External debt breakdown (%)
Sustainable Debt Profile Supported by Diversified Sources of Financing
Interest payments / NG revenue (%) and Interest payments / NG expenditure (%)
Steady decline in the Republic’s interest service burden
31.7
23.6 22.6
24.8 24.4
20.5 20.4 18.8
16.8
14.7 13.9
12.6 12.3
29.7
23.3 21.4
19.6 19.3 17.9 17.6 17.2
16.2
13.9 11.9
11.0 10.2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Interest Payments/Revenue Interest Payments/Expenditure
25
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255 153 102
Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN)
Package 1A of the Comprehensive Tax Reform Package, or TRAIN (RA No. 10963) was implemented on 1 Jan 2018
Seeks to correct structural weaknesses in the current tax system to make it simpler, fairer, and more efficient and to generate stable revenue
stream to upgrade infrastructure and reduce poverty. It includes mitigating measures designed to redistribute some of the gains to the poor
99% of the country’s population is expected to benefit from income tax cuts and tax exemption
30% of revenues earmarked for social protection programs, e.g., cash transfers for the poorest 10mn households and social welfare card
70% of the incremental revenues to develop the country’s infrastructure
Salient Features of Package 1
Lowered personal income tax (PIT) - PIT exemptions for the first PHP250,000 taxable income and significant PIT cuts for other tax brackets
Simplified estate and donor’s tax to 6% flat rate
Increased excise tax on automobiles
Increased excise tax on petroleum products
Introduced excise tax on sugar-sweetened beverages using caloric and non-caloric sweeteners, and high fructose corn syrup
Introduced cosmetic excise tax of 5%
Increased excise tax on tobacco products
Expanded the value-added tax base
Republic Act No. 11213 or Tax Amnesty Act
Package 1B involves granting an amnesty on all unpaid estate tax, other internal revenue taxes and tax on delinquencies imposed by the
national government for 2017 and prior years. Signed by the President into law on 14 Feb 2019
Other Reforms in the Pipeline
Package 1C involves adjustments in the Motor Vehicle Users Charge. Pending with various Committees at the House of Representatives
Package 2 will reduce corporate income taxes (from 30% to 20%) to eventually match regional averages as well as modernize the chaotic fiscal
incentives in place that produced an uneven playing field and ultimately discouraged new businesses. Only incentives that are performance-
based, targeted, time-bound and transparent will remain. Approved on third and final reading at the Lower House. Target ratification by 2019
Package 2 Plus involves additional excise taxes on tobacco and alcohol products as well as an increase in the government’s share from mining.
The bill on Establishing the Fiscal Regime for the Mining Industry or HB 8400 was approved on third and final reading at the Lower House
Package 3 involves reforms in property valuation to make the system more equitable, efficient and transparent
Package 4 reforms the taxation of capital income and financial services by redesigning the financial sector taxation into a simpler, fairer, more
efficient and revenue neutral tax system. HB No. 8645 approved on third and final reading at the House of Representatives’ Committee on Ways
and Means
Game Changing Tax Reform Supports Expansionary Fiscal Policy TRAIN is a sound continuation of decades of reforms and a testament of solid support for the President’s reform agenda
Source: DOF, Congress
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Accelerated Infrastructure Development
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Public Investment Program (PIP) 2017-2022
Ambitious Infrastructure Program
The country’s
development partners
are actively extending
assistance to fund the
Build Build Build
Program
Expanded and
newly cemented
relations emerging
as major
contributors to the
game changing
infrastructure plan
of the government
8,062 projects under the
Updated PIP 2017-2022 (USD160bn)
75 Infrastructure
Flagship Projects*
(USD40.7bn)
Higher investment in infrastructure is expected to usher in the Golden Age of Infrastructure
Infrastructure Spending Program, Budget Appropriations
Obligation Basis (USD bn)
Source: DBM Infrastructure Outlays Annual Cash-Based Appropriations FY2019-2022, NEDA 75 Infrastructure Flagship Projects as of 31 January 2019; Updated PIP 2017-2022 as of 20 March 2019
* 6 projects without estimated cost yet
Note: Exchange Rate used is midpoint (USD1/PHP53.5) of DBCC exchange rate assumption of PHP52-55 for 2019 as of 13 March 2019
20.7 17.7
20.3
30.1 34.7 5.0 4.7 4.9
6.6 6.9
0.0
2.0
4.0
6.0
8.0
0.0
10.0
20.0
30.0
40.0
2018 2019 2020 2021 2022
Infrastructure Appropriations (USD bn) Infrastructure Appropriations (% of GDP)
NG-GAA 78.1%
ODA Loan 16.9%
PPP 2.3%
LGU 1.5%
GOCC/GFI 0.7%
Others 0.4%
ODA Grant 0.2%
Modes of Financing Number of Infrastructure Projects
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Airports USD 2,302.0
6%
Energy USD 14.0 Flood Control
USD 957.2 2%
Mass Transit USD 1,655.7
4%
New Cities USD 111.4
Railways USD 24,680.8
61%
Roads and Bridges USD 8,993.6
22%
Ports USD 513.6
1%
Water USD 1,448.6
4%
Robust Pipeline of Critical Infrastructure Projects 75 Flagship Projects
High-impact Infrastructure Projects
- of which 37 projects worth over USD29.2bn
have been approved by the NEDA Board
*Amount does not include cost of 12 projects without estimate yet; Note: As of March 2019, four PPP projects were already added
to the pipeline compared to previous status update as of December 2018; Source: DBM Infrastructure Outlays Annual Cash-
Based Appropriations FY2019-2022, NEDA, DOF and PPP Center; Exchange Rate used is midpoint (USD1/PHP53.5) of DBCC
exchange rate assumption of PHP52-55 for 2019 as of 13 March 2019
North-South Commuter Railway (NSCR) Extension Project (USD11,746.2mn)
Status: Groundbreaking of Phase 1 on 15 February 2019
25.3km Metro Manila Subway Project - Phase 1 (USD6,672.2mn)
Status: Groundbreaking of Phase 1 on 27 February 2019
581km PNR Long-haul Manila-Bicol (USD3,277.0mn)
Status: Contract for project management consultancy signed
Davao International Airport Development Project (USD758.3mn)
102.3km Mindanao Railway: Tagum-Davao City-Digos Segment (USD659.0mn)
Select NEDA Board Approved Infrastructure Flagship
Projects
Status of PPP projects
as of 31 March 2019
Amount in million
Source: 75 NEDA Infrastructure Flagship Projects (as of 31 January 2019)
Status of Select Infrastructure Flagship Projects
Status Project
Completed
Bridges improvement: remaining sections along Pasig
River from Delpan Bridge to Napindan Channel
Ongoing
construction
MRT-LRT Common Station
Sta. Monica-Lawton Bridge
Clark International Airport Expansion Project
New Clark City National Government Center
Estrella-Pantaleon Bridge & Binondo-Intramuros
Bridge
Awarded
Clark International Airport O&M awarded to Changi-led
consortium
Loan agreement
and commercial
contract signed
New Centennial Water Source – Kaliwa Dam
Implementation of
the Agreement of
the Feasibility
Study
Davao City Expressway Project
Panay-Guimaras-Negros Island Bridges Project
Total of 58 PPP Projects worth USD68.8bn*
17 Projects Under Implementation (USD6.1bn)
15 Solicited Projects
(USD4.5bn)
2 Unsolicited Projects
(USD1.6bn)
41 Projects in the Pipeline (USD62.7bn)
14 Solicited Projects
(USD0.0071bn)
27 Unsolicited Projects
(USD62.7bn)
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Firm Institutional Foundations
Through Structural Reforms
30
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Year Selected Structural/Policy Reforms in the Philippine Economy
1993 Creation of the Bangko Sentral ng Pilipinas (Republic Act (RA) No. 7653)
1994 Liberalization of foreign bank entry (RA No. 7721)
1995 Liberalization of the telecommunications industry (RA No. 7925)
1996 An act to further liberalize foreign investments, amending for the purpose RA7042 (RA No. 8179)
1997 Privatization of water services (MWSS) (RA No. 8041)
1998 Deregulation of the oil industry (RA No. 8479); Adoption of consolidated bank supervision
2000 Philippine e-commerce act (RA No. 8792)
2001 Liberalization of the power sector (EPIRA) (RA No. 9136)
2002 Inflation targeting framework; Special purpose vehicle act (RA No. 9182); PhilPass
Government procurement reform act (RA No. 9184)
2004 Securitization act; Adoption of Basel 2; Financial sector forum (FSF)
2005 Expanded value-added tax (E-VAT) (RA No. 9337); Fixed income exchange
2006 Wholesale Electricity Spot Market (WESM)
2007 Risk-based bank supervision
2008 Credit information system act (RA No. 9510)
2009 Privatization of National Transmission Corporation (TransCo) and National Power Corporation’s (NPC) assets
2011 Executive Order (EO) No. 29 on open skies policy; Adopted phased-immigration to Basel III
Government-owned-and-controlled corporations governance act of 2011 (RA No. 10149)
2012 Amendments to sin tax law (RA No. 10351)
Amendments to the anti-money laundering law (RA No. 10365)
2013 Act allowing the infusion of foreign equity in the capital of rural banks (RA No. 10574)
2014
Comprehensive agreement on the Bangsamoro
Go negosyo act promotes the development of micro, small, and medium enterprises (RA No. 10644)
Ladderized education Act (RA No. 10647)
Full entry of foreign banks in the Philippines (RA No. 10641)
2015
Philippine Competition Act (RA No. 10667)
Act allowing foreign vessels to transport and co-load foreign cargoes for domestic transhipment (RA No. 10668)
Department of Information and Communications Technology Act of 2015 (RA No. 10844)
Tax incentives management and transparency act (RA No. 10708)
Long Track Record of Purposeful Structural and Policy Reforms
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Year Selected Structural/Policy Reforms in the Philippine Economy
2016
Amendments to the act to facilitate the acquisition of right-of-way site or location for national government infrastructure projects (RA No. 8974)
Amendments to the Philippine Deposit Insurance Corp. (RA No. 10846)
Customs modernization and tariff act (RA No. 10863)
Operationalizing in the executive branch full public disclosure and transparency (EO No. 2)
Amendment to investment restrictions for adjustment, lending and foreign companies and investment houses (RA No. 10881)
Personal Equity Retirement Account (PERA), crafted in 2008 as RA No. 9505
Approving and adopting the twenty-five-year long term vision entitled Ambisyon Natin 2040 as guide for development planning (EO No. 5)
2017
Attaining and sustaining “Zero Unmet Need For Modern Family Planning” through the strict implementation of the responsible parenthood and reproductive health act, providing
funds therefor, and for other purposes (EO No. 12)
Philippine Development Plan (PDP) 2017-2022 – the first medium-term development plan to be anchored on the national long-term vision “AmBisyon Natin 2040”
Reorganizing the cabinet clusters system by integrating good governance and anti-corruption in the policy frameworks of all clusters and creating the infrastructure cluster and
participatory governance cluster (EO No. 24)
Directing all government agencies and instrumentalities, including local government units, to implement the Philippine Development Plan And Public Investment Program for
the Period 2017-2022 (EO No. 27)
An Act Establishing the Free Internet Access Program in Public Places in the Country (RA No. 10929)
Act Rationalizing and Strengthening the Policy Regarding Driver’s License By Extending the Validity Period of Drivers’ Licenses (RA No. 10930)
Universal Access to Quality Tertiary Education Act (RA No. 10931)
An Act Strengthening the Anti-Hospital Deposit Law By Increasing the Penalties for Refusal of Hospitals and Medical Clinic to Administer
Appropriate Initial Medical Treatment and Support in Emergency or Serious Cases (RA No. 10932)
Amendments to the 1996 Passport Law to extend validity of passport to 10 years (RA No. 10928)
Amendments to the Anti Money Laundering Act (RA No. 10927)
Tax Reform for Acceleration and Inclusion (TRAIN) (RA No. 10963)
2018
Ease of Doing Business Act (RA No. 11032)
Philippine Identification System Act (RA No. 11055)
Bangsamoro Organic Law (RA No. 11054)
Removing Tariff Barriers and Streamlining Administrative Procedures on the Importation of Agricultural Products (A.O. No.13)
11th
Regular Foreign Investment Negative List (EO No. 65)
Personal Property Security Act (RA No. 11057)
National Payment Systems Act (RA No. 11127); BSP (central bank of the Philippines) as overseer of the national payments system)
2019
Amendments to the BSP Charter (RA No. 11211)
An Act Liberalizing the Importation, Exportation and Trading of Rice, Lifting for The Purpose the Quantitative Import Restriction on Rice, and for other Purposes (RA No. 11203)
An act enhancing revenue administration and collection by granting an amnesty on all unpaid internal revenue taxes imposed by the national government for taxable year 2017
and prior years with respect to estate tax, other internal revenue taxes and tax on delinquencies or the “Tax Amnesty Act” (RA No. 11213)
Passed the Universal Health Care Act (RA No. 11223)
Passed the Social Security Act of 2018 (RA No. 11199)
Act to Strengthen the Country’s Gross International Reserves (GIR) or the Gold Bill (Senate Bill No. 2127 – Approved on Third Reading)
Accelerated Pace of Reform Implementation to Further Strengthen Institutions
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Strong Commitment to Further Improve Investment Environment
RA 11032
Ease of Doing
Business Act
In line with Priority #3 of the 0+10 Socioeconomic
Agenda, President Rodrigo Duterte signed into law
the “Ease of Doing Business Act” to improve the
country’s competitiveness and ease of doing business
It aims to further improve and speed up the delivery
of government services by simplifying the issuance
of permits and licenses
Overall, it aims to promote transparency and cut red
tape in government for a more conducive business
environment
Select Salient Features of the Ease of Doing Business Act
1. Prescribed Processing Time – Government Owned and Controlled Corporations,
government instrumentalities located in the Philippines or abroad shall comply
with prescribed processing time as follows:
2. Streamlined procedures for the issuance of local business licenses, clearances,
permits or authorizations
3. Automatic Approval - In case an agency fails to approve or disapprove an
original application within the prescribed processing time, the said application
shall be deemed approved.
4. Philippine Business Databank - This shall provide NGAs/LGUs access to data
and information to verify the validity, existence of business entities. Applicants
need not submit the same documentary requirements previously submitted
5. Creation of the Anti-Red Tape Authority
6. Penalties - 2 strike policy for government officials and employees found in
violation of EODB/Efficient Delivery of Government Service Act
First Offense: Administrative liability with six (6) months suspension. Except
for fixing or collusion with fixers where the Revised Penal Code shall apply
Second Offense: Administrative and criminal liability
Dismissal from the service
Imprisonment of one (1) to six (6) years
Perpetual disqualification from holding public office
Fine of not less than PHP500K but not more than PHP2mn
Forfeiture of retirement benefits
3 working days Simple Transactions
7 working days
Complex Transactions
20 working days
Highly Technical Transactions
Unified Business Application Form
Automation of Business Permits
and Licenses (LGUs)
Establishment of Business One Stop
Shop (BOSS)
Barangay clearances and permits are now
issued at the city or municipality
Source: DTI, PSA, NEDA
Select Salient Features of the Philippine Identification Act
The Philippine Identification System (PhilSys) is
a foundational identification system to provide a
valid proof of identity for all citizens and
resident aliens as a means of simplifying public
and private transactions; a social and economic
platform which shall serve as the link in the
promotion of seamless service delivery,
enhancing administrative governance, reducing
corruption, strengthening financial inclusion,
and promoting ease of doing business
Application for eligibility/services and
access to:
Social welfare and benefits granted by
the government
Passports, driver’s license
Tax-related transactions
Admission in schools/government
hospitals
Opening of bank accounts
Registration and voting purposes
Transactions for employment purposes
Cardholder’s criminal records and
clearances
Updates on the Implementation
Philippine Statistics Authority (PSA)
hopes to award the PhilSys before the
year ends through a competitive bidding
After the law’s enactment, a consortium
composed of Ayala Corporation’s AC
Infrastructure Holdings Corp. and Aboitiz
Infracapital, Inc. (AIC) in partnership with
Unisys Philippines immediately submitted
an unsolicited proposal to the
government to develop the “national
identity infrastructure solution” worth
PHP15bn or USD291.3mn
11th Regular Foreign Investment Negative List (RFINL)
Executive Order (EO) No. 65 or the 11th RFINL was signed by the President in
October 2018
The 11th RFINL eases foreign restriction in the following areas and activities: internet
businesses, construction and repair of public works projects; insurance adjustment
companies, lending companies, financing companies and investment houses;
teaching at higher education levels; private radio communications network; wellness
centers
Meanwhile, legislative actions to lift restrictions on foreign participation in other
investment areas/activities identified in the President’s Memorandum Order No. 16,
series of 2017 are already being undertaken. House Bill No. 5828, which seeks to
amend the Public Service Act, was approved on third reading by the House of
Representatives on September 2017, transmitted to, and accepted by, the Senate on
the same month. Senate Bills No. 695, 1261, 1291, 1441 and 1594 also seek to
amend the Public Service Act.
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Socioeconomic Agenda of the Duterte
Administration
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Strong mandate from people ensures political capital to advance transformational reforms that will move the economy to even higher growth plane and
improve welfare of Filipinos. Action-oriented, results-driven leadership style of the President boosts prospects for a more robust investment climate
characterized by common compliance to law and order in a more conducive regulatory environment
10-Point Socioeconomic Agenda of the Duterte Administration
ACCELERATE
INFRASTRUCTURE
SPENDING
INSTITUTE PROGRESSIVE
TAX REFORM
INCREASE COMPETITIVENESS
& EASE OF DOING BUSINESS
CONTINUE SUCCESSFUL
MACROECONOMIC
POLICIES
PROMOTE RURAL
DEVELOPMENT
IMPROVE SOCIAL
PROTECTION
PROGRAMS
INVEST IN HUMAN CAPITAL PROMOTE SCIENCE,
TECHNOLOGY & ARTS
ENSURE SECURITY OF LAND
TENURE & ADDRESS
BOTTLENECKS IN LAND
MANAGEMENT
STRENGTHEN
IMPLEMENTATION OF
RESPONSIBLE PARENTHOOD
& RH LAW
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The President and the Economic Team
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President Rodrigo Roa Duterte was born on March 28, 1945 in Maasin, Southern Leyte to Vicente Duterte
and Soledad Roa who were both civil servants. His mother was a public school teacher while his father was
a government worker.
Duterte traces his roots to the Visayas. He spent his early years in Danao, Cebu, the hometown of his
father. But his lineage has also direct ties from Mindanao as his mother hails from Cabadbaran, Agusan del
Norte while his paternal grandmother was a Maranao.
In 1949, when Duterte was four years old, his family resettled in the then-undivided Davao where his father
Vicente later entered the political arena and was elected governor of the province and served from 1959 to
1965.
Duterte graduated in 1968 with a Bachelor of Arts degree in Political Science at the Lyceum of the Philippines University and obtained
a law degree from San Beda College of Law in 1972. He passed the bar exam that same year. He served as special counsel and later
on became a city prosecutor at the City Prosecutor’s Office in Davao City from 1977 until 1986, when he was appointed as OIC Vice
Mayor of Davao City.
He ran and successfully won the mayoralty post in 1988. Since then, Duterte has not lost an election. He is among the longest-serving
mayors in the Philippines and has been Mayor of Davao City for seven terms, totalling more than 22 years. He has also served as
vice-mayor and as congressman of the city’s first congressional district.
On May 9, 2016, Duterte won a landslide victory as the Philippine’s 16th President. He was officially proclaimed by a joint session of
the Philippine Congress on May 30, 2016. He is the first Mindanaoan President and the first local chief executive to get elected straight
to the Office of the President.
President Rodrigo R. Duterte, 16th President of the Philippines
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Seasoned Professionals Leading the Philippine Economy
Agency Head Brief Profile
Bangko Sentral ng Pilipinas Dr. Benjamin Diokno
Former Budget Secretary under Pres. Rodrigo Duterte
and Pres. Joseph Estrada; Professor Emeritus at the
University of the Philippines School of Economics
Department of Finance Carlos Dominguez III
Former BOD of RCBC Capital Corp., Agriculture
Secretary under Pres. Corazon Aquino, President of
Philippine Airlines, Chairman of Planters Bank
National Economic and
Development Authority Dr. Ernesto Pernia
University of the Philippines Economics Professor
Emeritus; former ADB Lead Economist
Department of Budget
Management Janet Abuel
Currently Officer-in-Charge
Bar exam topnotcher
Master's degree in public administration from the Lee
Kuan Yew School of Public Policy in Singapore, and a
master of laws degree from the University of Sydney in
Australia
Department of Trade and Industry Ramon Lopez
Former Vice President of RFM Corporation, Executive
Director of Go Negosyo, a non-stock, non-profit
organization that seeks to promote entrepreneurship in
the country
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Seasoned Professionals Leading the Philippine Economy
Agency Head Brief Profile
Department of Energy Alfonso Cusi Former Chief of Manila International Airport Authority
and Civil Aviation Authority of the Philippines
Department of Transportation Arthur Tugade
Former President and CEO of Clark Development
Corporation (an economic zone north of Manila and
formerly a US Military Air Base)
Department of Public Works and
Highways Mark Villar
Former Congressman, Lone District of Las Piñas City,
Metro Manila; was re-elected Congressman for the 17th
Congress
Department of Agriculture Emmanuel Piñol
Former Governor and Vice Governor of North Cotabato,
Mindanao, credited for bringing down poverty incidence
in his province to 25.6% in 2009 from 41.6% in 2000
Department of Tourism Bernadette Romulo Puyat Former Agriculture Undersecretary and University of the
Philippines’ School of Economics Lecturer
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Benjamin E. Diokno, PhD
Governor
Bangko Sentral ng Pilipinas
Dr. Diokno is the current Governor of the Bangko Sentral ng Pilipinas (BSP). He finished his Bachelor’s Degree in Public Administration
from the University of the Philippines (1968), and earned his Master’s Degree in Public Administration (1970) and Economics (1974) from
the same university. He also holds a Master of Arts in Political Economy (1976) from the Johns Hopkins University in Baltimore, Maryland,
USA and a Ph.D. in Economics (1981) from the Maxwell School of Citizenship and Public Affairs, Syracuse University in Syracuse, New
York, USA.
Prior to his appointment as BSP Governor, he served as Budget Secretary from 2016 to 2019. On his third tour of duty at the Department of Budget and Management (DBM), he
pursued an expansionary fiscal policy to finance investments in human capital development and public infrastructure.
His policy expertise and research contribution extend to various areas of public economics, such as the structure and scope of government, tax policies and reforms, public
expenditure management analysis, fiscal decentralization, national budget and public debt among other topics. He has extensive experience in implementing reforms at the public
sector, having also served as Budget Undersecretary from 1986 to 1991 and Budget Secretary from 1998 to 2001.
He is Professor Emeritus of the University of the Philippines-Diliman. Over more than 40 years, he taught the following courses: Public Sector Economics, Microeconomics,
Macroeconomics, Development Economics and Special Topics (e.g., Public Enterprises Investment and Pricing Policies; Public Sector Reforms; Local Government Finance, etc.).
He was also Chairman of the Board of Trustees of the Pamantasan ng Lungsod ng Maynila (City University of Manila).
He served as Fiscal Adviser to the Philippine Senate. He also served as Chairman and CEO of the Philippine National Oil Company (PNOC) and Chairman of the Local Water
Utilities Administration.
Some of the major policy reform contributions of Dr. Diokno include: providing technical assistance to the 1986 Tax Reform Program to simplify the income tax system and introduce
the value-added tax, helping design the 1991 Local Government Code of the Philippines, initiating a What-You-See-Is-What-You-Get policy to streamline the release of funds,
sponsoring the internationally-lauded Government Procurement Reform Act to modernize, regulate, and standardize government procurement activities in the Philippines.
He served as an adviser and consultant to various multilateral agencies like the World Bank, Asian Development Bank, European Commission, and USAID for work in the
Philippines, China and transitioning economies like Vietnam, Cambodia, and Mongolia.
He has also participated in numerous international conferences hosted by the IMF, ADB, World Bank, APEC, UN among other international organizations. Beyond this, he has
authored numerous publications and discussion papers regarding his research interests that have been published in academic journals and policy reports.
40
11 92
153
205 63 72
82 84 86
206 201
3
15 157 88
255 153 102
Rosalia V. De Leon is reappointed as Treasurer of the Philippines. She directs the
formulation of policies on borrowing, investment and capital market development and
handles the formulation of adequate operations guidelines for fiscal and financial policies.
Prior to her designation, Ms. De Leon served as the Alternate Executive Director (For the
constituency of Brazil, Colombia, Dominican Republic, Ecuador, Haiti, Panama, Philippines,
Suriname, and Trinidad and Tobago) at the World Bank Group, Washington D.C. USA.
She also assumed key positions in the Department of Finance, including Undersecretary for
International Finance Group from July 2007 to November 2012, Finance Secretary’s Chief
of Staff from July 2005 to June 2010 and Director for International Finance Group from
September 1995 to August 1998. She served as Advisor to the Executive Director of the
Asian Development Bank from August 1998 to August 2004. As the Undersecretary for the
International Finance Group, she task-managed several landmark transactions including
the issuance of Global Peso Notes as well as several Liability Management Exercises to
reduce funding costs, extend maturity profiles and redenominate foreign exchange liabilities
to local currency. In 2012, her team launched the Onshore Dollar Bonds to take advantage
of foreign exchange liquidity in the domestic market. Ms. De Leon has represented the
Department of Finance in many international fund mobilization activities for public sector
entities and formulated borrowing strategies and appropriate credit enhancements to
access least cost financing options. As the National Treasurer in 2013, Ms. De Leon also
led the implementation of the Treasury Single Account as part of the Public Financial
Management reforms initiated by the government. The TSA made it easier to manage the
cash holdings of the National Government thereby improving the efficiency of Treasury
operations.
Ms. De Leon earned her Master of Arts in Development Economics from Williams College
Massachusetts.
Diwa C. Guinigundo rose from the ranks of the Bangko Sentral ng Pilipinas (BSP) and is now Deputy
Governor for the Monetary and Economics Sector, BSP. He has been serving the BSP for 41 years.
He was assistant governor for monetary policy and international operations prior to his appointment
as deputy governor in 2005.
Dep. Gov. Guinigundo has extensive international experience. In 2001-2003, he was Alternate
Executive Director at the International Monetary Fund in Washington, DC. Earlier he was Head of
Research at The SEACEN (Southeast Asian Central Banks) Centre in Kuala Lumpur in 1992-1994.
His leadership is well-recognized in Asia. Since 2000, Dep. Gov. Guinigundo has co-chaired the
SEACEN Experts Group on Capital Flows with Bank Negara Malaysia. For the period 2009-2012, he
chaired the Executive Meeting of East Asia and the Pacific (EMEAP) Monetary and Financial
Stability Committee of EMEAP central bank deputies that is tasked to conduct regional and global
surveillance. In 2010-2013 and in 2016-2018 he likewise chaired the ASEAN Senior Level
Committee where he established various early warning systems for surveillance and risk
management purposes. He also chaired the SEACEN Task Force on SEACEN membership; and the
2017 ASEAN Finance and Central Bank Deputies’ Meetings in Manila, Philippines in April 2017.
Most important, Dep. Gov. Guinigundo has profound knowledge of all central banking aspects
having handled monetary policy, treasury operations, loans and credit, asset management, currency
management, regional operations and international operations. He pioneered inflation targeting as
the BSP’s analytical framework for monetary policy in 2002. In 2016, he was instrumental in
introducing the interest rate corridor system as a tool for monetary management to keep inflation
under control. He is also the moving force behind the BSP’s advocacy for economic and financial
literacy to help the poor manage their finances and address the issue of poverty. Dep. Gov.
Guinigundo also championed the establishment of Credit Surety Funds all over the Philippines to
empower micro, small and medium enterprises by enhancing their access to bank credit without
collateral. He participated in various banking rehabilitation workouts.
Dep. Gov. Guinigundo has represented the BSP in the annual Philippine Economic Briefing sessions
in the Philippines as well as in Asia, Europe and the United States together with the country’s
principal economic managers.
He graduated, cum laude, at the top of his AB Economics Class at the University of the Philippines
(UP) School of Economics. He earned the M.Sc. degree in Economics at the London School of
Economics (LSE) as a scholar of the Central Bank of the Philippines.
Rosalia V. De Leon
Treasurer of the Philippines
Bureau of the Treasury
Department of Finance
Diwa C. Guinigundo
Deputy Governor
Monetary and Economics Sector
Bangko Sentral ng Pilipinas
