BEYOND BUDGET
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
Last Nov. 7, I had the honor to speak on our country’s key investment imperatives in one of the event tracks of the Singapore Fintech Festival (SFF), the premier platform for the global FinTech community to engage, connect, and collaborate on financial services development, public policy, and technology. Organized by the Monetary Authority of Singapore, Elevandi, and Constellar, with the Association of Banks in Singapore, SFF 2024 focused on artificial intelligence and quantum computing in financial services and FinTech’s potential in driving sustainable finance.
I proudly shared that President Ferdinand R. Marcos Jr. (PBBM) prioritizes digitalization to achieve our Agenda for Prosperity. In his latest State of the Nation Address, PBBM highlighted that our initiatives “effectively addressed the fragmented, overlapping, and time-consuming procedures that had hindered optimal productivity in government.”
Indeed, the Philippines is experiencing dynamic growth through technology and innovation, particularly in e-commerce, digital payments, and tech-driven financial solutions. In Asia, we are one of the fastest-growing digital economies. Bain & Company’s e-Conomy SEA 2024, in collaboration with Google and Temasek, noted that our digital economy is expected to continue its double-digit growth, potentially reaching $31.0 billion in gross merchandise value in 2024, and $80 billion to $135 billion by 2030. Meanwhile, the World Bank’s most recent GovTech Maturity Index placed the Philippines in “Group B,” indicating our substantial investments in GovTech, implementation of reforms, and adoption of best practices for creating a cohesive digital ecosystem.
To continue bridging the digital divide, we have allocated $1.6 billion for information and communications technology (ICT) programs and projects across government agencies under the proposed 2025 National Budget, including the free Wi-Fi in public spaces and state universities and colleges, the National Broadband Plan, and the National Government Data Center Infrastructure. Meanwhile, we are harmonizing ICT efforts through the Medium-Term Information and Communications Technology Harmonization Initiative.
Additionally, we institutionalized the Integrated Financial Management Information System (IFMIS) to make financial reporting more efficient, transparent, and accountable, reducing opportunities for corruption. Our Public Financial Management (PFM) Reforms Roadmap 2024-2028 will also modernize PFM systems, incorporating the Budget and Treasury Management System (BTMS) to expedite the IFMIS adoption, enhancing resource allocation and allowing real-time monitoring of obligations and disbursements. We hope to launch the BTMS by year-end and roll it out across all government agencies by 2027.
Other initiatives include Project Bumblebee, a portal for real-time payment settlement; the Government Purchase Card, an efficient alternative payment solution; and Project DIME (Digital Information for Monitoring and Evaluation), which leverages technologies to monitor government projects’ progress and allows fund utilization and actual project status comparisons. To strengthen our cybersecurity efforts, investments under the National Cybersecurity Plan 2023-2028 were allotted a budget of $23.9 million for 2025 — a 312 percent increase from the current year.
Meanwhile, the New Government Procurement Act (NGPA) digitalizes the procurement process, modernizing the PhilGEPS to include e-bidding and e-marketplace facilities for efficiency, transparency, and public participation. Incidentally, on the same day, I joined the Stratbase Group’s 2024 Pilipinas Conference online, where I expounded on NGPA’s features and how it updates, strengthens, and drastically enhances our procurement systems.
Further, I noted that our efforts to boost financial inclusion are bearing fruit. In 2023, over 50 percent of retail payments were digital – a significant increase from the 10 percent share in 2018. Meanwhile, active e-money accounts surged to 393.6 million, reflecting the rapid expansion of digital financial services. The Bangko Sentral ng Pilipinas played a key role in these advancements by revising regulations to support digital financial services and launching open finance initiatives, including a financial inclusion website.
Showcasing the Philippines’ digital vision
It was truly inspiring to see the Philippine Pavilion themed “Bagong Pilipinas,” a product of teamwork between government agencies and the FinTech Alliance.Ph – representing over 100 member companies responsible for 95 percent of the country’s digital financial transactions. The exhibit underscored our nation’s commitment to digital transformation and its bid as a digital hub for foreign investments. In a recorded message, PBBM emphasized the transformative power of digital finance in improving financial inclusion and invited foreign investors to support our FinTech industry.
We also signed a Memorandum of Understanding with FinTech Alliance.Ph to enhance collaboration on policy development, capacity-building activities, and workshops on digitalization and innovation. In addition, I had a fireside chat with financial journalist Salve Duplito, focusing on our digitalization initiatives to establish the country as a digital hub in Asia.
Beyond budget, the PBBM administration is strongly committed to advancing financial technology, PFM reforms, and transparency. However, creating a thriving, inclusive, and sustainable economy requires a whole-of-society approach. Hence, we encourage our private sector partners, especially the FinTech sector, to collaborate with us to realize our Bagong Pilipinas vision of becoming Asia’s digital and FinTech hub.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)