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. 11 92 Disclaimer 153 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 205 63 basis of the prospectus supplement and the accompanying prospectus. By accessing this presentation, you are agreeing to be bound 72 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 82 historical facts are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that 84 may cause the actual results, performance or achievements of the Republic to be materially different from those expressed or implied 86 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 206 Exchange Commission (the “SEC”) for the offering to which this presentation relates (the “offering”). Before you invest, you should read 201 the latest prospectus in that registration statement (file no. 333-208780), the prospectus supplement and other documents that the 3 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 15 the offering will arrange to send you the prospectus if you request it by calling, Deutsche Bank toll-free at 1-800-503-4611. 157 88 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 255 153 this presentation to other persons in your company or elsewhere is prohibited. 102

2 11 92 Transaction Summary 153

205 Summary Terms for the New Issue 63 72 Issuer  Republic of the Philippines (the "Republic")

82 Expected Issuer Ratings  Moody’s: Baa2 Stable / S&P: BBB Positive / Fitch: BBB Stable 84 86 Issue Ratings  Moody’s: Baa2 / S&P: BBB / Fitch: BBB

206 Status  Fixed Rate, Senior Unsecured 201 3 Format  U.S. SEC-Registered

15 Tenor  [8 Years] 157 88 Size  EUR Benchmark

 The Republic intends to use the net cash proceeds from the sale of the global bonds for general purposes of the 255 Use of Proceeds 153 Republic, including budgetary support. 102 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  BNP Paribas, Credit Suisse, Deutsche Bank, Standard Chartered Bank and UBS Managers

3 11 92 Table of Contents 153

205 63 72 I. Strengthened Credit Profile 5 II. Favorable Macroeconomic Trends 8 82 84 86 III. Demonstrated External Resiliency 14 IV. Sound and Stable Financial System 17 206 201 V. Sound and Strengthened Government Finances 19 3 VI. Accelerated Infrastructure Development 26

15 157 VII. Firm Institutional Foundations Through Structural Reforms 29 88 VIII. Socioeconomic Agenda of the Duterte Administration 33

255 IX. The President and the Economic Team 35 153 102

4 33 219 254 246 250 244 54 31 195 139 192 186 111 31 37 50 144 186

Strengthened Credit Profile

Duterte Administration: Reform-Minded Leadership Focused on Delivering 11 92 Results 153 Transformative policies anchored on domestic-led growth and continuing structural reforms

 One of the fastest growing economies in the Asia Pacific region 205 • Rapid and more broad-based economic growth 63 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 72 Continued sound macroeconomic  Moderate inflation pressures in 2018  Resilient external payments position amid global uncertainties management yields  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 strong results tourism sectors (4.2% yoy in 2018) 82  Sound banking system 84  Business optimism in the Philippines highest in Southeast Asia and 6th among 35 economies covered according to Grant Thornton’s International Business Report H2 86 2018 Economic Update  Increasing net FDIs on account of improved investment environment.

 Firm commitment to fiscal sustainability Fiscal initiatives • Passed the Tax Reform for Acceleration and Inclusion (Package 1A) 206 • 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 201 strengthen public 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 3 finances and 1B) (signed into law on 14 February 2019) provide growth • Passed the Social Security Act of 2018 (signed into law on 7 February 2019)  Long history of prudent fiscal management impetus  Streamlined budgeting and disbursement processes • Simplified Implementing Rules and Regulations (IRRs) of the Government Procurement Reform Act 15  Aims to stop underspending on infrastructure through budget allocations 157 88  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 Massive • Target USD160bn infrastructure spending for 2017-2022 increases public investments on infrastructure to about 7.0% of GDP by 2022 infrastructure  Huge increases in the 2019 proposed budget of two major infrastructure agencies: Department of Public Works and Highways (25.8% growth) and Department of 255 development Transportation (89.3% growth)1/ 153  Robust growth of disbursements on infrastructure and other capital outlays at 41.3% in FY2018 102  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) Sustained reform  Passed the Rice Tariffication Law (signed into law on 14 February 2019) momentum  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) 6  Passed the National Payment Systems Act ; BSP as overseer of the payments system 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 11 92 Sustained Strengthening of Philippines Credit Profile 153 Metric 2013 2014 2015 2016 2017 2018

205 Credit Ratings 63 • Moody’s Baa3/positive Baa2/stable Baa2/stable Baa2/stable Baa2/stable Baa2/stable 72 • S&P BBB-/stable BBB/stable BBB/stable BBB/stable BBB/stable BBB/positive • Fitch BBB-/stable BBB-/stable BBB-/positive BBB-/positive BBB/stable BBB/stable Real GDP Growth Rate (%) 7.1 6.1 6.1 6.9 6.7 6.2 82 GDP Per Capita* (USD) 2,768 2,849 2,883 2,953 2,989 3,104 84 86 GNI Per Capita * (USD) 3,364 3,453 3,487 3,555 3,594 3,720 5.2 Inflation Rate (2012 = 100) (%) 2.6 3.6 0.7 1.3 3.2 3.8 (Jan-Mar 2019) 206 National Government Interest Payments 12.3 201 18.8 16.8 14.7 13.9 12.6 3 (as % of Revenues) 15.5 (Jan-Feb 2019) Fiscal Balance (as % of GDP) -1.4 -0.6 -0.9 -2.4 -2.2 -3.2

15 Tax Revenue (as % of GDP) 13.3 13.6 13.6 13.7 14.2 14.7 157 88 General Government Debt (as % of GDP) 39.3 36.4 36.2 34.6 36.6 36.3 (end-Sep)

79.2 Gross International Reserves (USD bn) 83.2 79.5 80.7 80.7 81.6 83.6 (end-Mar 2019) 255 153 7.0 102 ‒ Import Cover (months) 11.6 9.9 9.9 8.8 7.7 7.4 (end-Mar 2019)

28.9 Overseas Filipinos’ Cash Remittances (USD bn) 23.0 24.6 25.6 26.9 28.1 4.8 (end-Feb 2019) 9.8 Foreign Direct Investments (USD bn) 3.7 5.7 5.6 8.3 10.3 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 *at current prices Source: BSP’s Selected Economic and Financial Indicators, Department of Finance (DOF), Bureau of Treasury (BTR) 7 33 219 254 246 250 244 54 31 195 139 192 186 111 31 37 50 144 186

Favorable Macroeconomic Trends 11 92 Philippines is One of the Fastest Growing Economies in Asia 153 GDP growth of select Asian economies

205 Real GDP growth (%) 63 72 8.2 2017 2018

7.2 7.1 6.8 6.9 82 6.6 6.7 84 6.2 86 5.1 5.2 5.1 4.7 206 4.1 201 3.9 3

15 157 88

255 India Vietnam China Philippines Indonesia Malaysia Thailand 153 (Baa2/BBB-/BBB-) (B1/BB-/BB) (A1/A+/A+) (Baa2/BBB/BBB) (Baa3/BBB-/BBB) (A3/A-/A-) (Baa1/BBB+/BBB+) 102

. 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) 9 11 92 Economic Rebalancing Towards a More Broad-Based Growth 153 Consumption, investment and services remain as major drivers of growth

GDP breakdown by component 205 63 Contribution to growth: demand (%) Contribution to growth: supply side (%) 6.2 72 6.7 6.4 6.4 6.7 6.2 4.0 82 3.0 2.6 4.5 84 3.9 86 4.5 3.8 3.8 0.2 0.7 0.7 1.4 2.8 0.7 0.3 2.8 0.4 2.8 0.3 206 4.0 4.1 3.8 3.3 1.8 201 2.5 2.4 2.4 3 1.2 2.3 -0.3 -0.8 0.7 -1.3 -2.9 0.2 0.4 0.1 0.3 0.1 1990-1999 2000-2009 2010-2017 2017 2018 1990-1999 2000-2009 2010-2017 2017 2018 15 Consumption Government Investment Net Exports Statistical Discrepancy Agriculture Industry Services 157 88 Capital formation continues to accelerate … and is an increasingly key driver of growth

Gross capital formation (PHP bn, constant prices) GDP breakdown by expenditure (%, constant prices) +13.9% 2,852.3 255 +9.4% 2018 -10.7 68.5 11.2 31.0 +24.5% 2,505 153 2,290 102 +18.4% +27.9% +4.2% 1,838 2017 -8.4 68.9 10.5 28.9 1,553 +2.8% -4.3% 1,490 1,217 1,165 2016 -8.2 69.5 10.5 28.2

2015 -3.8 69.3 10.3 24.2 2011 2012 2013 2014 2015 2016 2017 2018 Household Expenditure Government Spending Construction Durable Equipment Others Capital Formation Net Exports

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 compiled, to 10 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. 11 92 Rising Investments Highlight Confidence in Philippine Growth Prospects 153 ROP gaining attractiveness as an FDI destination Net Foreign Direct Investment (FDI) Flows* (USD bn) Average Growth of FDI, 2013- 2018 (%) 205 44.9 63 36.1 72 10.3 9.8 8.3 22.4 5.7 5.6 10.0 10.4 82 3.2 3.7 1.9 2.0 84 1.1 0.6 86 Malaysia India Vietnam* Philippines Thailand Indonesia 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan-19 *Q1-Q3 2018 data Sustained inflows from both foreign and local investors particularly in manufacturing to support higher growth 206 201 Investors continue to place their bets on ROP Manufacturing has been getting a big share of interest 3 Total Approved Investments** (PHP bn) Net FDI Average Percent Share to Net Equity by Industry, 2012-2018 Manufacturing +19.3% YOY Others 38.8% growth in 2018 12.2% 15 Construction 157 1.9% 88 Mining and 905.2 Quarrying Financial and 480.0 803.0 3.3% Insurance 488.9 408.7 569.0 441.7 466.9 255 346.6 11.4% 153 Wholesale and Water Supply, 289.5 Retail Trade Sewerage, and 102 196.1 258.2 274.0 186.9 245.2 219.0 179.0 105.7 5.7% Waste Management 2010 2011 2012 2013 2014 2015 2016 2017 2018 Arts, 9.7% Real Estate Entertainment and Filipino Foreign 8.7% Recreation Note: Values may not sum up due to rounding 8.1% . 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

of Philippine respondents (net) globally in terms of plans to increase globally, Philippine business executives 65% expected their business revenue to Top 3 exports. Philippines net of 47% topped Top 3 expect to hire more people increase (5th in global rankings) ASEAN’s 35% and global 21%

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 11 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) 11 92 Sustaining the Growth Momentum by Expanding Productive Capacity 153 Philippines has the highest total factor productivity (TFP) Incremental Capital-Output Ratio among Asian Countries 205 by Oxford Economics 63 72 10 8 6 82 9.5 4 84 6.4 86 2 4.2 3.9 0 206 1989 - 1992 1993 - 2001 2002 - 2009 2010 - 2018 201 3

Robust labor dynamics Quality of employment improving 15 157 Employment share by educational attainment Employment Share by Class of Workers 100.0 2.0 0.9 100.0 88 5.6 13.4 12.1 3.6 4.3 80.0 32.8 80.0 26.9 255 153 31.5 42.6 102 60.0 60.0

38.4 40.0 6.2 40.0 63.8 52.2 20.0 37.0 20.0 26.8

0.0 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 College Post Secondary High School Elementary (with SPED) No Grade Completed Wage and salary workers Self-employed Employee in own family Unpaid Worker 12 Source: BSP, PSA, Oxford Economics/Haver Analytics 11 92 Manageable Inflation Environment Supportive of Growth 153 Supply-side factors underpin inflation in 2018

Headline CPI (yoy, %), 2012=100 205 5.2 63 3.8 72 3.6 3.2 2.6 1.3 0.7 82 84 86 2013 2014 2015 2016 2017 2018 Jan-Mar 2019 Inflation target band Headline CPI

206 . The BSP has taken decisive and measured policy actions to: 1) anchor inflation expectations; and 2) address any possible second-round effects. 201 3 . 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: 15 157  President Duterte signed Administrative Order No. 13 removing non-tariff barriers and streamlining administrative procedures on the importation of 88 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; 255 153  Simplification of licensing procedures for importing rice; 102  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 13 in the previous month; and 3) slightly below the 4.5 percent median market forecast. 33 219 254 246 250 244 54 31 195 139 192 186 111 31 37 50 144 186

Demonstrated External Resiliency 11 92 Robust Structural Current Account Inflows 153 BPO is a strong driver of employment and revenues

BPO employment (‘000s) and revenues (USD bn) 205 +2.9% YOY growth in 1,146 63 1,044 revenues in 2018 958 72 858 777 640 527 371 424 82 236 298 84 3.5 86 2.3 5.3 7.7 9.5 11.2 12.5 14.2 18.0 17.9 20.1 20.6 21.2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Revenues Employment 206 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 201 the Philippines (IBPAP) 3 . 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. 15 157 Remittances enjoy sustained growth over the years Tourism industry provides key support to the current account 88 Overseas Filipinos' cash remittances (USD bn) International visitor receipts (USD bn) and arrivals (mn) +7.7% YOY growth +4.1% YOY growth in arrivals in 2018 in receipts in 2018 255 +3.0% YOY growth in 7.1 153 6.6 Feb 2019 6.0 6.9 102 5.4 6.7 28.1 28.9 4.7 4.8 25.6 26.9 4.3 5.0 4.9 24.6 3.9 4.8 21.4 23.0 3.5 4.4 18.8 20.1 3.8 16.4 17.3 14.5 3.0 12.8 2.5 4.6 4.8

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan- Jan- 2010 2011 2012 2013 2014 2015 2016 2017 2018 Feb Feb Arrivals Receipts 2018 2019 15 Sources: BSP, Department of Tourism, IBPAP 11 92 Resilient External Payments Position Shields Economy from External Shocks 153

… while helping smoothen volatility in the foreign exchange 205 Reserve buffer provides protection against external payments market by enabling the necessary adjustments in a continued 63 shocks… volatile global environment 72 International reserves (USD bn) and months of import cover Volatility (Year-to-date as of 24 April 2019)

11.5 11.6 11.6 Philippine Malaysian Korean Chinese Indonesia Japanese 82 10.4 Peso Ringgit Won Renminbi Rupiah Thai Baht Yen 9.9 9.9 84 9.2 1.1 86 8.8 7.7 7.4 0.9 6.7 7.0 0.8 6.4 0.7 0.7 5.1 0.6 0.6 4.6 206 201 3 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

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 end-Mar 15 2019 157 International reserves Import cover 88 Prudent external debt burden underscores the health of external finances

External debt (USD bn) and external debt/GDP (%) 255 73.6 75.6 79.9 78.5 77.7 77.5 74.8 79.0 153 73.1 66.5 65.2 64.7 102 61.6 61.4

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 16 Source: BSP SEFI, Bloomberg, BSP staff calculation 33 219 254 246 250 244 54 31 195 139 192 186 111 31 37 50 144 186

Sound and Stable Financial System 11 92 Sound Banking System Effectively Funds Productive Sectors 153 Solid asset growth Improved quality of loan portfolio

Total Asset and Deposit Levels (PHP bn) of U/KBs Total Loans Outstanding (PHP bn) and NPL ratio (%) of U/KBs 205 +9.3% YOY growth in deposits (2018) 9,018 63 15,421 15,107 15,192 8,852 72 13,763 8,845 12,302 11,422 7,867 11,389 6,706 11,596

82 10,614 1.4 1.5 1.6 84 1.2 1.3 86 9,483

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan-19 Feb-19 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan-19 Feb-19

206 Total Loans Outstanding (in PHP bn) NPL, Gross ratio (in %) 201 Total Assets (in PHP bn) Deposits (in PHP bn) 3 Strong capitalization well above international norms Credit is channeled towards productive sectors

Capital Adequacy Ratio (%) of U/KBs Outstanding Loans of U/KBs Share to 15 Feb 2019 Total Sectors 157 15.4 (PHP bn) (Net of 88 RRPs,%) 14.8 Loans to Productive Sector 7,251.5 88.4 Real Estate Activities 1,397.0 17.0 255 BSP Regulatory Requirement: 10% Wholesale and Retail Trade, Repair of Motor Vehicles, Motorcycles 1,119.0 13.6 Manufacturing 1,065.5 13.0 153 International Standard: 8% 102 Electricity, Gas, Steam and Air-Conditioning Supply 922.2 11.2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Financial and Insurance Activities 738.6 9.0 Information and Communication 302.5 3.7 Solo basis Consolidated basis Transportation and Storage 267.7 3.3 . The BSP became a reporting country to the Bank of International Settlement Construction 300.7 3.7 in 2018, joining an elite group of less than 50 jurisdictions worldwide which Agriculture, Forestry and Fishing 194.6 2.4 Other Community, Social & Personal Activities 114.2 1.4 report cross-border banking statistics as part of the global database Others 829.7 11.4 . Cross-border banking data maintained by the Bangko Sentral ng Pilipinas Loans to Household Consumption 675.3 8.2 (BSP) was judged as meeting the rigorous BIS standards for completeness Loans to Residents 7,926.8 96.6 and quality Loans to Non-Residents 278.1 3.4 Total Loans to Residents and Non-Residents 8,204.9 100.0 Source: BSP 18 Note: UK/Bs – Universal and Commercial Bank 33 219 254 246 250 244 54 31 195 139 192 186 111 31 37 50 144 186

Sound and Strengthened Government Finances 11 92 Sound Fiscal Position Creating Fiscal Space for Productive Public Investments 153 Strong revenue performance due to intensified tax administrative reforms and TRAIN implementation

205 National Government Fiscal Performance 63 72 2018 Actual 2018 Program Particulars 2018 vs 2017 YoY Growth PHP bn % of GDP PHP bn1 % of GDP 82 YoY Growth (%) (%)2 84 86 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 15.1 206 201 Bureau of Internal Revenues 1,951.9 10.1 11.2 2,043.6 15.3 11.7 3 Bureau of Customs 593.1 29.4 3.4 584.9 27.7 3.3

15 Non-Tax Revenues 284.3 27.8 1.6 168.8 (24.1) 1.0 157 88 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 0.0 255 153 Expenditure 3,408.4 20.7 19.6 3,346.5 18.5 19.1 102 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

. 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) 20 Long History of Prudent Fiscal Management Supports Long-term Debt 11 92 Sustainability 153

Sustained decline in debt/GDP ratio 205 63 Government debt (% of GDP) 72 68.5

82 61.4 84 59.2 86 53.9 54.7 54.8 52.4 51 51.5 51.6 49.2

44.2 45.4 44.7 206 44.2 44.3 43.5 42.1 42.1 42.3 41.9 201 41.4 40.6 3 39.3 36.4 36.2 36.6 36.3 p/ 34.6

15 157 88

255 153 102

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 end-Sep end 2018 2018

National Gov't Debt General Gov't Debt

p/ preliminary 21 Sources: DOF, BTr 11 92 2019 National Budget 153 Increased allocations to improve public infrastructure, eradicate Budget Appropriations for 2019 poverty and maintain peace and order

205 2019 Proposed National Budget by Sector, % share 63 . The President signed on April 15 the 2019 General 72 Appropriations Act amounting to PHP3.757tn but vetoed PHP95.4bn of infrastructure projects that are not among the budget priorities for 2019. PHP3,757.7bn 82 PHP3,323.7bn 84 . The increased disbursement will be supported by projected 86 growth in revenues of 13.5%. Efficient and successful collection of projected revenues is vital to support and implement the 36.7% budget. 38.7% 206 201 . Government spending will be largely driven by the massive 3 infrastructure and human resource investments, particularly over Build Build Build Program, and social protection, among others.

15 . The education sector remains the top recipient of the budget. 28.4% 157 26.8% 88 . Investment in sufficient and quality infrastructure will increase economic activity through improved mobility, connectivity and sustainability across the country. Public infrastructure spending 5.0% 4.5% 255 in 2019 is estimated to generate about 1mn jobs. 153 18.9% 18.9% 102  Department of Public Works and Highways will provide network development that would include widening of roads, construction of by-pass and diversion roads, 11.2% 11.0% flyover/interchanges/underpasses/ long span bridges, among 2018 2019 others. Social Services Economic Services Defense  Bulk of the Department of Transportation’s budget will fund its General Public Services Debt Burden various railway, air transport and sea transport projects.

22 Source: DBM, 2019 President’s Budget Message 11 92 Strong Bias for Domestic Sources of Financing to Minimize FX Risks 153

Strategic Financing Program 205 63 Actual Actual Actual Actual Program 72 Particulars (in millions PHP) 2015 2016 2017 2018 2019

NET FINANCING 242,851 330,939 758,929 783,277 1,042,631 82 84 External (Net) 64,782 -24,113 27,569 191,752 140,003 86 External (Gross) 189,538 149,523 168,103 303,077 282,734

206 Less: Amortization 124,756 173,636 140,534 111,325 142,731 201 3 Domestic (Net) 178,069 355,052 731,360 591,525 902,629

420,072 357,497 733,569 594,474 906,154 15 Domestic (Gross) 157 88 Treasury Bills -17,303 23,501 26,433 179,937 54,482

Fixed Rate T Bonds 437,375 333,996 707,136 414,537 851,672 255 153 Less: Net Amortization 242,003 2,445 2,209 2,949 3,525 102

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 23 Note: Amounts net of bond exchange; domestic amortization includes maturing bond obligations for the year, net of amount serviced by the Bond Sinking Fund 11 92 Sustainable Debt Profile Supported by Diversified Sources of Financing 153 Ample domestic liquidity allows ROP to rely on domestic market to Steady decline in the Republic’s interest service burden fund majority of its requirements while minimizing FX risks 205 Interest payments / NG revenue (%) and Interest payments / NG expenditure (%) Total debt breakdown (%) 63 31.7 72 48 44 44 44 29.7 41 43 42 24.8 24.4 42 35 35 23.6 36 34 33 33 34 22.6 82 20.5 20.4 64 66 67 65 65 67 66 84 23.3 18.8 59 57 56 58 58 52 56 56 86 21.4 16.8 19.6 19.3 14.7 13.9 17.9 17.6 17.2 16.2 12.6 12.3 206 13.9 11.9 201 11.0 10.2 3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Interest Payments/Revenue Interest Payments/Expenditure External Domestic

15 157 Long-dated debt profile reduces refinancing risk 88 Domestic debt breakdown (%) External debt breakdown (%)

255 29 153 102 41 54 100 100 100 100 100 96 99 100 100 100 70 71 26 75 78 79 30 82 83 84 20 14 12 18 19 19 10 10 10 10 8 9 7 7 7 7 10 4 0.9 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018

Long-term: >10yrs Medium-term: 1yr to 10yr Short-term: <1yr Long-term: >10yrs Medium-term: 1yr to 10yr

24 Unless otherwise indicated, graphs pertain to National Government (NG) debt Source: Bureau of the Treasury, BSP 11 92 Game Changing Tax Reform Supports Expansionary Fiscal Policy 153 TRAIN is a sound continuation of decades of reforms and a testament of solid support for the President’s reform agenda Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) 205 . Package 1A of the Comprehensive Tax Reform Package, or TRAIN (RA No. 10963) was implemented on 1 Jan 2018 63 72  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 82  30% of revenues earmarked for social protection programs, e.g., cash transfers for the poorest 10mn households and social welfare card 84  70% of the incremental revenues to develop the country’s infrastructure 86 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 206 201 . Increased excise tax on automobiles 3 . 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 15 157 . Expanded the value-added tax base 88 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 255 national government for 2017 and prior years. Signed by the President into law on 14 Feb 2019 153 Other Reforms in the Pipeline 102 . 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 25 Source: DOF, Congress 33 219 254 246 250 244 54 31 195 139 192 186 111 31 37 50 144 186

Accelerated Infrastructure Development 11 92 Ambitious Infrastructure Program 153 Public Investment Program (PIP) 2017-2022 Number of Infrastructure Projects Modes of Financing 205 . The country’s

63 development partners 72 8,062 NG-GAA 78.1% are actively extending projects under the assistance to fund the Updated PIP 2017-2022 ODA Loan 16.9% Build Build Build 82 (USD160bn) Program 84 PPP 2.3%  Expanded and 86 newly cemented 75 LGU 1.5% relations emerging as major 206 Infrastructure 201 GOCC/GFI 0.7% contributors to the Flagship game changing 3 Projects* Others 0.4% (USD40.7bn) infrastructure plan ODA Grant of the government 0.2% 15 157 Infrastructure Spending Program, Budget Appropriations 88 Higher investment in infrastructure is expected to usher in the Golden Age of Infrastructure

40.0 6.6 6.9 8.0 255 5.0 153 30.0 4.7 4.9 34.7 6.0 102 30.1 20.0 4.0 20.7 20.3 17.7 10.0 2.0

0.0 0.0 2018 2019 2020 2021 2022 . Obligation Basis (USD bn) Infrastructure Appropriations (USD bn) Infrastructure Appropriations (% of GDP) 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

27 11 92 Robust Pipeline of Critical Infrastructure Projects 153 75 Flagship Projects High-impact Infrastructure Projects 205 - of which 37 projects worth over USD29.2bn Select NEDA Board Approved Infrastructure Flagship 63 Projects 72 have been approved by the NEDA Board Energy North-South Commuter Railway (NSCR) Extension Project Water Flood Control Airports USD 14.0 (USD11,746.2mn) USD 1,448.6 USD 2,302.0 USD 957.2 4% 6% 2% Status: Groundbreaking of Phase 1 on 15 February 2019 82 Ports USD 513.6 Mass Transit 25.3km Metro Manila Subway Project - Phase 1 84 1% USD 1,655.7 (USD6,672.2mn) 86 Roads and Bridges 4% Status: Groundbreaking of Phase 1 on 27 February 2019 USD 8,993.6 New Cities 22% USD 111.4 581km PNR Long-haul Manila-Bicol (USD3,277.0mn) 206 Status: Contract for project management consultancy signed 201 Railways 3 USD 24,680.8 Davao International Airport Development Project 61% (USD758.3mn)

102.3km Mindanao Railway: Tagum-Davao City-Digos 15 Segment (USD659.0mn) 157 Amount in million 88 Source: 75 NEDA Infrastructure Flagship Projects (as of 31 January 2019) Status of PPP projects Status of Select Infrastructure Flagship Projects as of 31 March 2019 Status Project 255 Completed  Bridges improvement: remaining sections along Pasig River from Delpan Bridge to Napindan Channel 153 Ongoing  MRT-LRT Common Station 102 Total of 58 PPP Projects worth USD68.8bn* construction  Sta. Monica-Lawton Bridge  Clark International Airport Expansion Project  New Clark City National Government Center 17 Projects Under 41 Projects in the Pipeline  Estrella-Pantaleon Bridge & Binondo-Intramuros Implementation (USD6.1bn) (USD62.7bn) Bridge Awarded  Clark International Airport O&M awarded to Changi-led consortium 15 Solicited 2 Unsolicited 14 Solicited 27 Unsolicited Loan agreement  New Centennial Water Source – Kaliwa Dam Projects Projects Projects Projects and commercial (USD4.5bn) (USD1.6bn) (USD0.0071bn) (USD62.7bn) contract signed Implementation of  Davao City Expressway Project *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- the Agreement of  Panay-Guimaras-Negros Island Bridges Project Based Appropriations FY2019-2022, NEDA, DOF and PPP Center; Exchange Rate used is midpoint (USD1/PHP53.5) of DBCC the Feasibility 28 exchange rate assumption of PHP52-55 for 2019 as of 13 March 2019 Study 33 219 254 246 250 244 54 31 195 139 192 186 111 31 37 50 144 186

Firm Institutional Foundations Through Structural Reforms 11 92 Long Track Record of Purposeful Structural and Policy Reforms 153 Year Selected Structural/Policy Reforms in the Philippine Economy 1993 Creation of the Bangko Sentral ng Pilipinas (Republic Act (RA) No. 7653) 205 1994 Liberalization of foreign bank entry (RA No. 7721) 63 1995 Liberalization of the telecommunications industry (RA No. 7925) 72 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 82 84 2000 Philippine e-commerce act (RA No. 8792) 86 2001 Liberalization of the power sector (EPIRA) (RA No. 9136) Inflation targeting framework; Special purpose vehicle act (RA No. 9182); PhilPass 2002 206 Government procurement reform act (RA No. 9184) 201 2004 Securitization act; Adoption of Basel 2; Financial sector forum (FSF) 3 2005 Expanded value-added tax (E-VAT) (RA No. 9337); Fixed income exchange 2006 Wholesale Electricity Spot Market (WESM)

15 2007 Risk-based bank supervision 157 2008 Credit information system act (RA No. 9510) 88 2009 Privatization of National Transmission Corporation (TransCo) and National Power Corporation’s (NPC) assets Executive Order (EO) No. 29 on open skies policy; Adopted phased-immigration to Basel III 2011 Government-owned-and-controlled corporations governance act of 2011 (RA No. 10149) 255 Amendments to sin tax law (RA No. 10351) 153 2012 102 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) Comprehensive agreement on the Bangsamoro Go negosyo act promotes the development of micro, small, and medium enterprises (RA No. 10644) 2014 Ladderized education Act (RA No. 10647) Full entry of foreign banks in the Philippines (RA No. 10641) Philippine Competition Act (RA No. 10667) Act allowing foreign vessels to transport and co-load foreign cargoes for domestic transhipment (RA No. 10668) 2015 Department of Information and Communications Technology Act of 2015 (RA No. 10844) 30 Tax incentives management and transparency act (RA No. 10708) 11 92 Accelerated Pace of Reform Implementation to Further Strengthen Institutions 153 Year Selected Structural/Policy Reforms in the Philippine Economy Amendments to the act to facilitate the acquisition of right-of-way site or location for national government infrastructure projects (RA No. 8974) 205 Amendments to the Philippine Deposit Insurance Corp. (RA No. 10846) 63 Customs modernization and tariff act (RA No. 10863) 72 2016 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

82 Approving and adopting the twenty-five-year long term vision entitled Ambisyon Natin 2040 as guide for development planning (EO No. 5) 84 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) 86 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) 206 Directing all government agencies and instrumentalities, including local government units, to implement the Philippine Development Plan And Public Investment Program for 201 the Period 2017-2022 (EO No. 27) 3 2017 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 15 Appropriate Initial Medical Treatment and Support in Emergency or Serious Cases (RA No. 10932) 157 Amendments to the 1996 Passport Law to extend validity of passport to 10 years (RA No. 10928) 88 Amendments to the Anti Money Laundering Act (RA No. 10927) Tax Reform for Acceleration and Inclusion (TRAIN) (RA No. 10963) Ease of Doing Business Act (RA No. 11032) 255 Philippine Identification System Act (RA No. 11055) 153 Bangsamoro Organic Law (RA No. 11054) 102 2018 Removing Tariff Barriers and Streamlining Administrative Procedures on the Importation of Agricultural Products (A.O. No.13) th 11 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) 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 2019 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)

31

11 92 Strong Commitment to Further Improve Investment Environment 153 In line with Priority #3 of the 0+10 Socioeconomic Select Salient Features of the Philippine Identification Act Agenda, President Rodrigo Duterte signed into law the “Ease of Doing Business Act” to improve the 205 country’s competitiveness and ease of doing business The Philippine Identification System (PhilSys) is a foundational identification system to provide a 63 It aims to further improve and speed up the delivery 72 valid proof of identity for all citizens and of government services by simplifying the issuance resident aliens as a means of simplifying public RA 11032 of permits and licenses and private transactions; a social and economic Ease of Doing Overall, it aims to promote transparency and cut red platform which shall serve as the link in the 82 Business Act tape in government for a more conducive business promotion of seamless service delivery, 84 environment enhancing administrative governance, reducing corruption, strengthening financial inclusion, 86 Select Salient Features of the Ease of Doing Business Act and promoting ease of doing business 1. Prescribed Processing Time – Government Owned and Controlled Corporations, government instrumentalities located in the Philippines or abroad shall comply Application for eligibility/services and Updates on the Implementation 206 with prescribed processing time as follows: access to: . Philippine Statistics Authority (PSA)

7 working . Social welfare and benefits granted by hopes to award the PhilSys before the 201 3 working 20 working days days year ends through a competitive bidding days Simple the government 3 Complex Highly Technical Transactions . Passports, driver’s license . After the law’s enactment, a consortium Transactions Transactions . Tax-related transactions composed of Ayala Corporation’s AC 2. Streamlined procedures for the issuance of local business licenses, clearances, . Admission in schools/government Infrastructure Holdings Corp. and Aboitiz permits or authorizations 15 hospitals Infracapital, Inc. (AIC) in partnership with Barangay Automation of . Opening of bank accounts Unisys Philippines immediately submitted 157 Establishment of clearances and Unified Business Business Permits . Registration and voting purposes an unsolicited proposal to the Business One Stop permits are now 88 Application Form and Licenses Shop (BOSS) issued at the city or . Transactions for employment purposes government to develop the “national (LGUs) municipality . Cardholder’s criminal records and identity infrastructure solution” worth clearances PHP15bn or USD291.3mn 3. Automatic Approval - In case an agency fails to approve or disapprove an 255 original application within the prescribed processing time, the said application 11th Regular Foreign Investment Negative List (RFINL) 153 shall be deemed approved. 102 4. Philippine Business Databank - This shall provide NGAs/LGUs access to data . Executive Order (EO) No. 65 or the 11 th RFINL was signed by the President in and information to verify the validity, existence of business entities. Applicants October 2018 need not submit the same documentary requirements previously submitted . The 11th RFINL eases foreign restriction in the following areas and activities: internet 5. Creation of the Anti-Red Tape Authority businesses, construction and repair of public works projects; insurance adjustment 6. Penalties - 2 strike policy for government officials and employees found in companies, lending companies, financing companies and investment houses; violation of EODB/Efficient Delivery of Government Service Act teaching at higher education levels; private radio communications network; wellness . First Offense: Administrative liability with six (6) months suspension. Except centers for fixing or collusion with fixers where the Revised Penal Code shall apply . Meanwhile, legislative actions to lift restrictions on foreign participation in other . Second Offense: Administrative and criminal liability  Dismissal from the service investment areas/activities identified in the President’s Memorandum Order No. 16,  Imprisonment of one (1) to six (6) years series of 2017 are already being undertaken. House Bill No. 5828, which seeks to  Perpetual disqualification from holding public office amend the Public Service Act, was approved on third reading by the House of  Fine of not less than PHP500K but not more than PHP2mn Representatives on September 2017, transmitted to, and accepted by, the Senate on 32  Forfeiture of retirement benefits the same month. Senate Bills No. 695, 1261, 1291, 1441 and 1594 also seek to Source: DTI, PSA, NEDA amend the Public Service Act. 33 219 254 246 250 244 54 31 195 139 192 186 111 31 37 50 144 186

Socioeconomic Agenda of the Duterte Administration 11 92 10-Point Socioeconomic Agenda of the Duterte Administration 153 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 205 63 72

82 84 86

206 201 3 CONTINUE SUCCESSFUL ACCELERATE INSTITUTE PROGRESSIVE INCREASE COMPETITIVENESS PROMOTE RURAL MACROECONOMIC INFRASTRUCTURE TAX REFORM & EASE OF DOING BUSINESS DEVELOPMENT 15 POLICIES SPENDING 157 88

255 153 102

ENSURE SECURITY OF LAND STRENGTHEN IMPROVE SOCIAL TENURE & ADDRESS PROMOTE SCIENCE, IMPLEMENTATION OF INVEST IN HUMAN CAPITAL PROTECTION BOTTLENECKS IN LAND TECHNOLOGY & ARTS RESPONSIBLE PARENTHOOD PROGRAMS MANAGEMENT & RH LAW

34 33 219 254 246 250 244 54 31 195 139 192 186 111 31 37 50 144 186

The President and the Economic Team 11 92 President Rodrigo R. Duterte, 16th President of the Philippines 153 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 205 63 a government worker. 72 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 82 Norte while his paternal grandmother was a Maranao. 84 86 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. 206 201 Duterte graduated in 1968 with a Bachelor of Arts degree in Political Science at the Lyceum of the Philippines University and obtained 3 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. 15 157 He ran and successfully won the mayoralty post in 1988. Since then, Duterte has not lost an election. He is among the longest-serving 88 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.

255 On May 9, 2016, Duterte won a landslide victory as the Philippine’s 16th President. He was officially proclaimed by a joint session of 153 the Philippine Congress on May 30, 2016. He is the first Mindanaoan President and the first local chief executive to get elected straight 102 to the Office of the President.

36 11 92 Seasoned Professionals Leading the Philippine Economy 153

Agency Head Brief Profile 205 63 72 . Former Budget Secretary under Pres. Rodrigo Duterte Bangko Sentral ng Pilipinas Dr. Benjamin Diokno and Pres. Joseph Estrada; Professor Emeritus at the University of the Philippines School of Economics 82 84 86

. Former BOD of RCBC Capital Corp., Agriculture 206 Department of Finance Carlos Dominguez III Secretary under Pres. Corazon Aquino, President of 201 Philippine Airlines, Chairman of Planters Bank 3

15 National Economic and . University of the Philippines Economics Professor 157 Dr. Ernesto Pernia 88 Development Authority Emeritus; former ADB Lead Economist

255 . Currently Officer-in-Charge 153 . Bar exam topnotcher 102 Department of Budget Janet Abuel . Master's degree in public administration from the Lee Management Kuan Yew School of Public Policy in Singapore, and a master of laws degree from the University of Sydney in Australia

. Former Vice President of RFM Corporation, Executive Director of Go Negosyo, a non-stock, non-profit Department of Trade and Industry Ramon Lopez organization that seeks to promote entrepreneurship in the country 37 11 92 Seasoned Professionals Leading the Philippine Economy 153

Agency Head Brief Profile 205 63 72 . Former Chief of Manila International Airport Authority Department of Energy Alfonso Cusi and Civil Aviation Authority of the Philippines 82 84 86 . Former President and CEO of Clark Development Department of Transportation Arthur Tugade Corporation (an economic zone north of Manila and 206 formerly a US Military Air Base) 201 3

15 . Former Congressman, Lone District of Las Piñas City, 157 Department of Public Works and Mark Villar Metro Manila; was re-elected Congressman for the 17th 88 Highways Congress

255 153 102 . Former Governor and Vice Governor of North Cotabato, Department of Agriculture Emmanuel Piñol Mindanao, credited for bringing down poverty incidence in his province to 25.6% in 2009 from 41.6% in 2000

. Former Agriculture Undersecretary and University of the Department of Tourism Bernadette Romulo Puyat Philippines’ School of Economics Lecturer

38 11 92 153 Benjamin E. Diokno, PhD Governor 205 Bangko Sentral ng Pilipinas 63 72

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 82 the same university. He also holds a Master of Arts in Political Economy (1976) from the Johns Hopkins University in Baltimore, Maryland, 84 USA and a Ph.D. in Economics (1981) from the Maxwell School of Citizenship and Public Affairs, Syracuse University in Syracuse, New 86 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 206 pursued an expansionary fiscal policy to finance investments in human capital development and public infrastructure. 201 3 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. 15 157 88 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).

255 153 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 102 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. 39

11 92 153 Rosalia V. De Leon Diwa C. Guinigundo Treasurer of the Philippines Deputy Governor 205 Bureau of the Treasury Monetary and Economics Sector 63 Department of Finance Bangko Sentral ng Pilipinas 72

82 84 Rosalia V. De Leon is reappointed as Treasurer of the Philippines. She directs the Diwa C. Guinigundo rose from the ranks of the Bangko Sentral ng Pilipinas (BSP) and is now Deputy 86 formulation of policies on borrowing, investment and capital market development and Governor for the Monetary and Economics Sector, BSP. He has been serving the BSP for 41 years. handles the formulation of adequate operations guidelines for fiscal and financial policies. He was assistant governor for monetary policy and international operations prior to his appointment as deputy governor in 2005. 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, Dep. Gov. Guinigundo has extensive international experience. In 2001-2003, he was Alternate 206 Suriname, and Trinidad and Tobago) at the World Bank Group, Washington D.C. USA. Executive Director at the International Monetary Fund in Washington, DC. Earlier he was Head of 201 She also assumed key positions in the Department of Finance, including Undersecretary for Research at The SEACEN (Southeast Asian Central Banks) Centre in Kuala Lumpur in 1992-1994. 3 International Finance Group from July 2007 to November 2012, Finance Secretary’s Chief His leadership is well-recognized in Asia. Since 2000, Dep. Gov. Guinigundo has co-chaired the of Staff from July 2005 to June 2010 and Director for International Finance Group from SEACEN Experts Group on Capital Flows with Bank Negara Malaysia. For the period 2009-2012, he September 1995 to August 1998. She served as Advisor to the Executive Director of the chaired the Executive Meeting of East Asia and the Pacific (EMEAP) Monetary and Financial 15 Asian Development Bank from August 1998 to August 2004. As the Undersecretary for the Stability Committee of EMEAP central bank deputies that is tasked to conduct regional and global 157 International Finance Group, she task-managed several landmark transactions including surveillance. In 2010-2013 and in 2016-2018 he likewise chaired the ASEAN Senior Level the issuance of Global Peso Notes as well as several Liability Management Exercises to 88 Committee where he established various early warning systems for surveillance and risk reduce funding costs, extend maturity profiles and redenominate foreign exchange liabilities management purposes. He also chaired the SEACEN Task Force on SEACEN membership; and the to local currency. In 2012, her team launched the Onshore Dollar Bonds to take advantage 2017 ASEAN Finance and Central Bank Deputies’ Meetings in Manila, Philippines in April 2017. of foreign exchange liquidity in the domestic market. Ms. De Leon has represented the Most important, Dep. Gov. Guinigundo has profound knowledge of all central banking aspects 255 Department of Finance in many international fund mobilization activities for public sector having handled monetary policy, treasury operations, loans and credit, asset management, currency 153 entities and formulated borrowing strategies and appropriate credit enhancements to management, regional operations and international operations. He pioneered inflation targeting as 102 access least cost financing options. As the National Treasurer in 2013, Ms. De Leon also the BSP’s analytical framework for monetary policy in 2002. In 2016, he was instrumental in led the implementation of the Treasury Single Account as part of the Public Financial introducing the interest rate corridor system as a tool for monetary management to keep inflation Management reforms initiated by the government. The TSA made it easier to manage the under control. He is also the moving force behind the BSP’s advocacy for economic and financial cash holdings of the National Government thereby improving the efficiency of Treasury literacy to help the poor manage their finances and address the issue of poverty. Dep. Gov. operations. Guinigundo also championed the establishment of Credit Surety Funds all over the Philippines to Ms. De Leon earned her Master of Arts in Development Economics from Williams College empower micro, small and medium enterprises by enhancing their access to bank credit without Massachusetts. 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 40 Economics (LSE) as a scholar of the Central Bank of the Philippines.