Republic of the 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 15 March 2019. These sources have been cited where possible. Table of Contents

I. Strengthened Credit Profile 3 II. Favorable Macroeconomic Trends 6 III. Demonstrated External Resiliency 12 IV. Sound and Stable Financial System 15 V. Sound and Strengthened Government Finances 17 VI. Accelerated Infrastructure Development 24 VII. Firm Institutional Foundations Through Structural Reforms 27 VIII. Socioeconomic Agenda of the Duterte Administration 31

IX. The President and the Economic Team 33

2 Strengthened Credit Profile Duterte Administration: Reform-Minded Leadership Focused on Delivering Results Transformative policies anchored on domestic-led growth and continuing structural reforms

 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 Continued sound o 20 years of uninterrupted economic expansion macroeconomic  Moderate inflation pressures in 2018  Resilient external payments position amid global uncertainties management yields  Structural current account flows from steady remittances (3.17% 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)  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.

 Firm commitment to fiscal sustainability Fiscal initiatives • 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 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 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  Aims to stop underspending on infrastructure through budget allocations

 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 USD170bn infrastructure spending for 2017-2022 increases public investments on infrastructure to 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 development Transportation (89.3% growth)1/  Robust growth of disbursements on infrastructure and other capital outlays at 49.7% in January-November 2018

 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 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) Sustained reform  Passed the momentum  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 4 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 Sustained Strengthening of Philippines Credit Profile

Metric 2013 2014 2015 2016 2017 2018

Credit Ratings • Moody’s Baa3/positive Baa2/stable Baa2/stable Baa2/stable Baa2/stable Baa2/stable • 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 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 5.2 Inflation Rate (2012 = 100) (%) 2.6 3.6 0.7 1.3 2.9 4.1 (Jan-Feb 2019) National Government Interest Payments 18.8 16.8 14.7 13.9 12.6 12.3 (as % of Revenues) 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)

82.8 Gross International Reserves (USD bn) 83.2 79.5 80.7 80.7 81.6 82.9 (end-Feb 2019)

7.0 ‒ Import Cover (months) 11.6 9.9 9.9 8.8 7.7 7.3 (end-Feb 2019)

28.9 Overseas ’ Cash Remittances (USD bn) 23.0 24.6 25.6 26.9 28.1 2.5 (end-Jan 2019)

Foreign Direct Investments (USD bn) 3.7 5.7 5.6 8.3 10.3 9.8 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) 5 Favorable Macroeconomic Trends Philippines is One of the Fastest Growing Economies in Asia

GDP growth of select Asian economies Real GDP growth (%)

8.2 2017 2018

7.2 7.1 6.9 6.8 6.7 6.6 6.2

5.1 5.2 5.1 4.7 4.1 3.9

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

. 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) 7 Economic Rebalancing Towards a More Broad-Based Growth

Consumption, investment and services remain as major drivers of growth

GDP breakdown by component Contribution to growth: demand (%) Contribution to growth: supply side (%) 6.2 6.7 6.4 6.4 6.7 6.2 4.0 3.0 2.6 4.5 3.9 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 4.0 4.1 3.8 3.3 1.8 2.5 2.4 2.4 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 Consumption Government Investment Net Exports Statistical Discrepancy Agriculture Industry Services

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 +9.4% 2018 -10.7 68.5 11.2 31.0 +24.5% 2,505 2,290 +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 8 Note: Numbers may not add up due to rounding Rising Investments Highlight Confidence in Philippine Growth Prospects ROP gaining attractiveness as an FDI destination Net Foreign Direct Investment (FDI) Flows* (USD bn) Average Growth of FDI, 2013- Q1-Q3 2018 (%) 48.6 37.6 10.3 9.8 26.8 8.3 8.8 10.3 5.7 5.6 3.2 3.7 2.0 1.1 -2.2

2010 2011 2012 2013 2014 2015 2016 2017 2018 Malaysia India Vietnam Philippines Thailand Indonesia Sustained inflows from both foreign and local investors particularly in manufacturing to support higher growth Investors continue to place their bets on ROP Manufacturing has been getting a big share of interest 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% Construction 1.9%

Mining and 905.2 Quarrying Financial and 480.0 803.0 3.3% Insurance 488.9 408.7 569.0 441.7 466.9 346.6 11.4% Wholesale and Water Supply, 289.5 Retail Trade Sewerage, and 196.1 258.2 274.0 186.9 245.2 219.0 179.0 105.7 5.7% Waste 2010 2011 2012 2013 2014 2015 2016 2017 2018 Management Arts, Entertainment Real Estate 9.7% and Recreation 8.7% Filipino Foreign 8.1% Note: Values may not sum up due to rounding . 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 3exports. Philippines net of 47% topped Top 3 expect to hire more people increase (5th in global rankings) ASEAN’s 35% and global 21%

9 Source: PSA, NEDA, BSP, UNCTAD, * 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) Sustaining the Growth Momentum by Expanding Productive Capacity Philippines has the highest total factor productivity (TFP) Incremental Capital-Output Ratio among Asian Countries by Oxford Economics 10 8 6 9.5 4 6.4 2 4.2 3.9 0 1989 - 1992 1993 - 2001 2002 - 2009 2010 - 2018

Robust labor dynamics Quality of employment improving Employment share by educational attainment Employment Share by Class of Workers 100.0 0.9 100.0 2.0 5.6 13.4 12.1 3.6 4.3 80.0 32.8 80.0 26.9

31.5 42.6 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 10 Source: BSP, PSA, Oxford Economics/Haver Analyticss Manageable Inflation Environment Supportive of Growth Supply-side factors underpin inflation in 2018

Headline CPI (yoy, %), 2012=100 5.2 4.1 3.6 2.6 2.9 1.3 0.7

2013 2014 2015 2016 2017 2018 Jan-Feb 2019 Inflation target band Headline CPI

. BSP took 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 11 in the previous month; and 3) slightly below the 4.5 percent median market forecast. Demonstrated External Resiliency Robust Structural Current Account Inflows

BPO is a strong driver of employment and revenues

BPO employment (‘000s) and revenues (USD bn) +2.9% YOY growth in 1,146 1,044 revenues in 2018 958 858 777 640 527 371 424 236 298 3.5 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 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) . 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.

Remittances enjoy sustained growth over the years Tourism industry provides key support to the current account 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 +4.4% YOY growth in Jan 7.1 6.6 2019 6.0 6.9 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

2.4 2.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Jan Jan 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 2019 Arrivals Receipts

13 Sources: BSP, Department of Tourism, IBPAP Resilient External Payments Position Shields Economy from External Shocks

… while helping smoothen volatility in the foreign exchange Reserve buffer provides protection against external payments market by enabling the necessary adjustments in a continued shocks… volatile global environment

International reserves (USD bn) and months of import cover Volatility (Year-to-date as of 15 March 2019)

11.5 11.6 11.6 Korean Philippine Malaysian Chinese Indonesia Japanese 10.4 Won Peso Ringgit Renminbi Rupiah Thai Baht Yen 9.9 9.9 9.2 8.8 1.0 1.1 7.7 0.9 7.0 7.3 6.7 6.4 0.8 5.1 4.6 0.5 0.5 0.6

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 82.8

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 end-Feb 2019

International reserves Import cover Prudent external debt burden underscores the health of external finances

External debt (USD bn) and external debt/GDP (%)

73.6 75.6 79.9 78.5 77.7 77.5 74.8 79.0 73.1 66.5 65.2 64.7 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 14 Source: BSP SEFI, Bloomberg, BSP staff calculation Sound and Stable Financial System Sound Banking System Effectively Funds Productive Sectors

Solid asset growth Improved quality of loan portfolio

Total Asset and Deposit Levels (PHP bn) of U/KBs +9.3% YOY growth in Total Loans Outstanding (PHP bn) and NPL ratio (%) of U/KBs deposits (2018) 8,584 15,421 13,763 12,302 7,476 6,313 11,596

10,614 1.4 1.2 1.3 9,483

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Assets (in PHP bn) Deposits (in PHP bn) Total Loans Outstanding (in PHP bn) NPL, Gross ratio (in %) 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 Total As of Jan 2019 Sectors (Net of (PHP bn) 15.8 RRPs,%) 15.0 Loans to Productive Sector 7,278.0 88.6 15.2 Real Estate Activities 1,382.1 16.8 14.4 Wholesale and Retail Trade, Repair of Motor Vehicles, Motorcycles 1,129.5 13.7 BSP Regulatory Requirement: 10% Manufacturing 1,070.2 13.0 International Standard: 8% Electricity, Gas, Steam and Air-Conditioning Supply 927.4 11.3 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sep Financial and Insurance Activities 747.2 9.1 2018 Information and Communication 311.4 3.8 Solo basis Consolidated basis Transportation and Storage 270.6 3.3 . The BSP became a reporting country to the Bank of International Settlement Construction 294.2 3.6 in 2018, joining an elite group of less than 50 jurisdictions worldwide which Agriculture, Forestry and Fishing 192.5 2.3 report cross-border banking statistics as part of the global database Other Service Activities 33.7 0.4 . Cross-border banking data maintained by the Bangko Sentral ng Pilipinas Others 833.0 11.4 (BSP) was judged as meeting the rigorous BIS standards for completeness Loans to Household Consumption 657.3 8.0 and quality Loans to Residents 7,935.3 96.6 Loans to Non-Residents 281.1 3.4 Source: BSP Total Loans to Residents and Non-Residents 8,216.3 100.0 16 Note: UK/Bs – Universal and Commercial Bank Sound and Strengthened Government Finances Sound Fiscal Position Creating Fiscal Space for Productive Public Investments

Strong revenue performance due to intensified tax administrative reforms and TRAIN implementation

National Government Fiscal Performance

2018 Actual 2018 Program 2019 Program3 Particulars 2018 vs 2017 PHP bn % of GDP PHP bn1 YoY Growth (%)2 % of GDP PHP bn YoY Growth (%)4 % of GDP YoY Growth (%)

Total Revenues 2,850.2 15.2 16.4 2,819.7 14.0 16.1 3,199.8 13.5 16.4

Tax Revenues 2,565.8 14.0 14.7 2,650.8 17.8 15.1 3,009.5 13.5 15.5

Bureau of Internal 1,951.9 10.1 11.2 2,043.6 15.3 11.7 2,322.3 13.6 11.9 Revenues

Bureau of Customs 593.1 29.4 3.4 584.9 27.7 3.3 662.2 13.2 3.4

Non-Tax Revenues 284.3 27.8 1.6 168.8 (24.1) 1.0 190.3 12.7 1.0

Bureau of the Treasury 114.2 14.3 0.7 55.8 (44.2) 0.3 73.9 32.5 0.4

Privatization 15.7 1,786.2 0.1 2.0 141.0 0.0 2.0 0.0 0.0

Expenditure 3,408.4 20.7 19.6 3,346.5 18.5 19.1 3,824.4 14.3 19.6

Surplus/(Deficit) (558.3) 59.2 (3.2) (526.8) 50.2 (3.0) (624.4) 18.5 (3.2)

Primary Surplus/(Deficit) (209.0) 421.4 (1.2) NA NA NA NA NA NA

Nominal GDP 17,422.82 17,510.5 19,462.6

. 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 2IRO computed 2018 Program vs 2017 Actual Note: Some values may not sum up to exact figure due to rounding 3Program Approved by the DBCC Special Meeting on November 23, 2018 Source: Department of Finance (DOF), Department of Budget and Management (DBM) and Bureau of the Treasury (BTr) 18 4IRO computed 2019 Projection vs. 2018 Program Long History of Prudent Fiscal Management Supports Long-term Debt Sustainability

Sustained decline in debt/GDP ratio Government debt (% of GDP)

68.5

61.4 59.2

53.9 54.7 54.8 51.6 52.4 51 51.5 49.2

44.2 45.4 44.7 44.2 44.3 41.4 43.5 42.1 42.1 42.3 41.9 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-Sep end 2018 2018

National Gov't Debt General Gov't Debt

p/ preliminary 19 Sources: DOF, BTr Proposed 2019 National Budget

Increased allocations to improve public infrastructure, eradicate poverty Proposed Budget Appropriations for 2019 and maintain peace and order . The increased disbursement will be supported by 2019 Proposed National Budget by Sector, % share projected growth in revenues of 13.5%. Efficient and successful collection of projected revenues is vital to support and implement the budget. PHP3,757.7bn PHP3,323.7bn . Government spending will be largely driven by the massive infrastructure and human resource investments, particularly over Build Build Build Program, 36.7% and social protection, among others. 38.7% . The education sector remains the top recipient of the budget. . Investment in sufficient and quality infrastructure will increase economic activity through improved mobility, 28.4% connectivity and sustainability across the country. Public 26.8% infrastructure spending in 2019 is estimated to generate about 1mn jobs. 5.0% 4.5%  Department of Public Works and Highways will provide network development that would include 18.9% 18.9% widening of roads, construction of by-pass and diversion roads, flyover/interchanges/underpasses/ 11.2% 11.0% long span bridges, among others. 2018 2019  Bulk of the Department of Transportation’s budget will fund its various railway, air transport and sea Social Services Economic Services Defense transport projects. General Public Services Debt Burden

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

Strategic Financing Program

Actual Actual Actual Actual Program Particulars (in millions PHP) 2015 2016 2017 2018 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 21 Note: Amounts net of bond exchange; domestic amortization includes maturing bond obligations for the year, net of amount serviced by the Bond Sinking Fund Sustainable Debt Profile Supported by Diversified Sources of Financing 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 Interest payments / NG revenue (%) and Interest payments / NG expenditure (%) Total debt breakdown (%) 31.7 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 20.5 20.4 64 66 67 65 65 67 66 23.3 18.8 59 57 56 58 58 52 56 56 21.4 16.8 19.6 19.3 14.7 13.9 17.9 17.6 17.2 16.2 12.6 12.3 13.9 11.9 11.0 10.2 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

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

29

41 96 54 99.1 100 100 100 100 100 100 100 100 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 Short-term: <1yr

22 Unless otherwise indicated, graphs pertain to National Government (NG) debt Source: Bureau of the Treasury, BSP 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 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 23 Source: DOF, Congress Accelerated Infrastructure Development Ambitious Infrastructure Program Public Investment Program (PIP) 2017-2022

Modes of Financing 4,985 Others . The country’s development projects* under the 8.2% partners are actively PIP 2017-2022 extending assistance to fund (USD170bn+) the Build Build Build PPP Program 16.5%  Expanded and newly 75 NG-GAA cemented relations 62.3% Infrastructure ODA emerging as major Flagship Projects 13.0% contributors to the game (USD43.8bn)** changing infrastructure plan of the government

Infrastructure Spending Program, Budget Appropriations Higher investment in infrastructure is expected to usher in the Golden Age of Infrastructure

40.0 6.6 7.0 8.0 6.1 5.7 30.0 4.7 35.2 6.0 29.9 20.0 23.7 4.0 20.7 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: Department of Budget and Management, NEDA 75 Infrastructure Flagship Projects as of 30 Nov 2018; PIP 2017-2022 Working Draft dated 25 July 2017 * Includes 495 additional projects amounting to PHP1.3tn are reflected in the other Chapters of the PIP ** 6 projects without estimated cost yet Note: Exchange Rate used is high-end of DBCC exchange rate assumption of USD52.5-53 for 2018 as of 16 October 2018 25 Robust Pipeline of Critical Infrastructure Projects 75 Flagship Projects High-impact Infrastructure Projects - of which 35 projects worth over USD29bn Select NEDA Board Approved Infrastructure Flagship have been approved by the NEDA Board Projects North-South Commuter Railway (NSCR) Extension Project Water Airports Energy Flood Control (USD11,857.0mn) USD 1,462.2 USD 2,323.7 USD 14.1 USD 966.2 4% 6% Ports 2% Mass Transit Status: Groundbreaking of Phase 1 on 15 February 2019 USD 518.5 USD 1,671.3 25.3km Metro Manila Subway Project - Phase 1 1% 4% (USD6,735.2mn) Roads and Bridges Status: Groundbreaking of Phase 1 on 27 February 2019 USD 9,024.4 New Cities 22% USD 112.5 581km PNR Long-haul Manila-Bicol (USD3,307.9mn) Railways USD 24,913.6 Status: Contract for project management consultancy signed 61% International Airport Development Project (USD765.5mn)

102.3km Mindanao Railway: Tagum--Digos Segment (USD665.2mn) Amount in million Source: 75 NEDA Infrastructure Flagship Projects (as of 30 November 2018) Status of PPP projects Status of Select Infrastructure Flagship Projects as of 27 December 2018 Status Project Completed  Bridges improvement: remaining sections along Awarded Under Pre-Construction Pasig River from Delpan Bridge to Napindan 10 4 Channel Under Procurement Ongoing  MRT-LRT Common Station For Procurement construction  Sta. Monica-Lawton Bridge 52  Clark International Airport Expansion Project 17 Under Procurement On Hold 14 projects Awarded Construction,  New Clark City National Government Center 9  Estrella-Pantaleon Bridge & Binondo-Intramuros Approved & For USD6.3bn* Negotiation Bridge For Evaluation & Loan agreement and  New Centennial Water Source – Kaliwa Dam Approval 6 1 3 Completed/ commercial contract Under Development 1 Operational signed 4 Implementation of  Davao City Expressway Project the Agreement of  Panay-Guimaras-Negros Island Bridges Project *Amount does not include cost of 32 projects without estimate yet; Source: NEDA, DOF and PPP Center; Note: Of the 52 PPP 26 projects, 22 are unsolicited: two (2) of these unsolicited projects have already been awarded and twenty (20) are in the pipeline; the Feasibility Study Exchange Rate used is high-end of DBCC exchange rate assumption of USD52.5-53 for 2018 as of 16 October 2018 Firm Institutional Foundations Through Structural Reforms Long Track Record of Purposeful Structural and Policy Reforms 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) Inflation targeting framework; Special purpose vehicle act (RA No. 9182); PhilPass 2002 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 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) Amendments to sin tax law (RA No. 10351) 2012 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) 28 Tax incentives management and transparency act (RA No. 10708) Accelerated Pace of Reform Implementation to Further Strengthen Institutions 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) Amendments to the Philippine Deposit Insurance Corp. (RA No. 10846) Customs modernization and tariff act (RA No. 10863) 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 Approving and adopting the twenty-five-year long term vision entitled Ambisyon Natin 2040 as guide for development planning (EO No. 5) 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) 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 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) Ease of Doing Business Act (RA No. 11032) Philippine Identification System Act (RA No. 11055) Bangsamoro Organic Law (RA No. 11054) 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)

29 Strong Commitment to Further Improve Investment Environment

In line with Priority #3 of the 0+10 Socioeconomic Select Salient Features of the Philippine Identification Act Agenda, President signed into law the “Ease of Doing Business Act” to improve the country’s competitiveness and ease of doing business The Philippine Identification System (PhilSys) is a foundational identification system to provide a It aims to further improve and speed up the delivery 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 Business Act tape in government for a more conducive business promotion of seamless service delivery, environment enhancing administrative governance, reducing corruption, strengthening financial inclusion, 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 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 3 working 20 working days days year ends through a competitive bidding days Simple the government 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 hospitals Infracapital, Inc. (AIC) in partnership with Barangay Automation of . Opening of bank accounts Unisys Philippines immediately submitted Establishment of clearances and Unified Business Business Permits . Registration and voting purposes an unsolicited proposal to the Business One Stop permits are now 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 original application within the prescribed processing time, the said application 11th Regular Foreign Investment Negative List (RFINL) shall be deemed approved. 4. Philippine Business Databank - This shall provide NGAs/LGUs access to data . Executive Order (EO) No. 65 or the 11th 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 30  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. Socioeconomic Agenda of the Duterte Administration 10-Point Socioeconomic Agenda of the Duterte Administration 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

CONTINUE SUCCESSFUL ACCELERATE INSTITUTE PROGRESSIVE INCREASE COMPETITIVENESS PROMOTE RURAL MACROECONOMIC INFRASTRUCTURE TAX REFORM & EASE OF DOING BUSINESS DEVELOPMENT POLICIES SPENDING

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

32 The President and the Economic Team President Rodrigo R. Duterte, 16th President of the Philippines

President Rodrigo Roa Duterte was born on March 28, 1945 in Maasin, Southern Leyte to 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, , the hometown of his father. But his lineage has also direct ties from Mindanao as his mother hails from , 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 . 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.

34 Seasoned Professionals Leading the Philippine Economy

Agency Head Brief Profile

. Former Budget Secretary under Pres. Rodrigo Duterte Bangko Sentral ng Pilipinas Dr. and Pres. Joseph Estrada; Professor Emeritus at the University of the Philippines School of Economics

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

National Economic and . University of the Philippines Economics Professor Dr. Development Authority Emeritus; former ADB Lead Economist

. Currently Officer-in-Charge . Bar exam topnotcher 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 35 Seasoned Professionals Leading the Philippine Economy

Agency Head Brief Profile

. Former Chief of Manila International Airport Authority Department of Energy and Civil Aviation Authority of the Philippines

. Former President and CEO of Clark Development Department of Transportation Corporation (an economic zone north of Manila and formerly a US Military Air Base)

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

. 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

36 Rosalia V. De Leon Diwa C. Guinigundo Treasurer of the Philippines Deputy Governor Bureau of the Treasury Monetary and Economics Sector Department of Finance Bangko Sentral ng Pilipinas

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 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 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 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. 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 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 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 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 Department of Finance in many international fund mobilization activities for public sector having handled monetary policy, treasury operations, loans and credit, asset management, currency entities and formulated borrowing strategies and appropriate credit enhancements to management, regional operations and international operations. He pioneered inflation targeting as 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 37 Economics (LSE) as a scholar of the Central Bank of the Philippines. Promoting the Philippine economy at home and abroad The IRO undertakes a range of initiatives to build awareness among domestic and international investment audiences around the Government’s economic reform program, promote specific investment opportunities in the Philippines and facilitate information exchange and dialogue between key economic policy decision-makers in the Government and domestic/international investors. These initiatives include: • Regular Economic Briefings to update the business community, media and industry organizations on the country’s economic performance • Investor Roadshows to bring the Government’s resilient economic performance record, commitment to sound economic management and responsible reform to members of the international financial community • Media Briefings to raise awareness of the Government’s progress in economic reforms and plans for ongoing reforms • Government Policy Roadshows to increase the business community’s Contact Information understanding of government policy measures to generate support for the For further information about the Investor Relations Office, policy implementation process or about the Philippine economy, please contact: • Investor Teleconferences to provide timely updates on key economic Atty. Elizabeth Victoria Medina-Navarro performance indicators Investor Relations Office • E-mail service to keep investors and other investors abreast of data releases Bangko Sentral ng Pilipinas on a regular basis A. Mabini St. cor. P. Ocampo St. Malate Manila, Philippines 1004 • An English Language website, www.iro.ph, to provide a wide range of easily Tel: (632) 708-7487 / (632) 303-1581 accessible information about the Philippines’ economic performance and the Email: [email protected] government’s economic policies Fax: (632) 708-7489 Website: www.iro.ph

38 ThinkGrowthThinkPhilippines #ThinkGrowthPH InfoIROatBSP