President Ferdinand "Bongbong" Marcos Jr. rallied government financial institutions (GFIs) and private banks to establish a system that would help the administration address the estimated 6.5 million housing backlog by the end of his term in 2028.
Marcos made this call in his meeting with Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Acuzar, along with GFIs and the country's top banks, on Wednesday evening, October 26.
In his remarks, the President highlighted the "indispensable support" of the private banking sector in his administration.
"I think we can; there should be sufficient incentives... arrangement for the private banks to come in," Marcos said.
Acuzar, for his part, said his department looks at building 1 million houses a year or a total of 6 million houses by the end of his term. He added that this is possible by building in-city, mix-use residential hubs to cater to minimum-wage earners and middle-class families.
However, he said the program would need P36 billion a year for the next six years in cooperation with private lending institutions.
To pull off the extensive program, President Marcos noted that a system should be in place to find the country's cash flow that will support the endeavor while incentivizing private entities that will participate in the building and financing aspects.
According to Acuzar, the DHSUD will address the housing backlog and tap the housing industry's big economic pump-priming potential.
He added that the DHSUD has already identified potential areas for developing settlements and townships.
Present during the meeting were Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla and heads of the Bureau of Treasury, Pag-IBIG, Government Service Insurance System (GSIS), Philippine National Bank (PNB), and Land Bank of the Philippines.
According to Malacañang, representatives from BDO, Metrobank, Union Bank, Ayala Corporation, and China Bank expressed their support for the President's housing program, saying they will help in the crafting of the financing system to carry it out.