Your Excellency, Ambassador Medardo Macaraig, members of the economic team, ladies and gentlemen:

Assalamu alaikum wa Raḥmatullahi wa Barakatuh.

It's so wonderful to once again be back in Singapore!

If you will recall, this was where the very first international Philippine Economic Briefing under President Ferdinand R. Marcos Jr.—or PBBM as we fondly call him—was held in September of last year. And now, we are the first country to have a second economic briefing in Singapore, a true testament to the strong friendship of our nations.

First, I would like to thank the Philippine Embassy, DBS Bank Singapore, and our partners here for giving us this opportunity to once again share the latest developments on the country's economic performance and investment opportunities, and on our end at the Department of Budget and Management, to highlight our Priority Expenditures.

Today, we bring you good news from the Philippines.

We remain on track with our Agenda for Prosperity in spite of global headwinds and the challenges of economic recovery after the pandemic lockdowns.

This agenda is the Philippines’ economic transformation, bearing in mind inclusivity and sustainability. Our priority expenditures have therefore been aligned with the 8-Point Socioeconomic Agenda and cater to the objectives under the Philippine Development Plan 2023 to 2028.

The transformation has begun. For the first quarter of 2023, the Philippine economy expanded by 6.4 percent, as mentioned by Sec. Ben.

But from the time that the current administration got to work—from the third quarter of 2022 to the first quarter of 2023—our growth on average was actually 7.1%. So in just three quarters, we have seen the transformation of the Philippine economy to become one of the best-performing economies in East Asia and the G7.

And now, to give you an overview of the Fiscal Year 2023 General Appropriations Act, the National Budget of the Philippines amounts to USD 94.8 billion which is a 4.9 percent increase from our budget in 2022, or equivalent to 21.9 percent of our GDP.

The bulk of this budget has been allotted for the Social Services sector, equivalent to roughly 38.1 percent of the national budget, to ensure revitalized education, quality healthcare, and strengthened social protection.

As mandated by the Philippine Constitution, Education remains our top priority which covers about 17.0 percent of the total national budget. This Constitutional commitment has ensured that even amidst the most pressing global crisis such as the COVID-19 pandemic, the Philippines would not waver in this commitment to education. Attesting to this, we were among the top countries in the ASEAN region with substantial public expenditures for education even during the pandemic.

But we have also recently given the Health Sector one of the most significant increases in the budget as part of our commitment to strengthen our healthcare system following lessons from the pandemic, as well as the mandate of PBBM to expand access to affordable healthcare even to the farthest regions.

Moreover, we are strengthening social protection, covering 11.7 percent of the 2023 National Budget. We are determined to invest in the above sectors not only to ensure that no one is left behind but also for our economic transformation into a productive and healthy nation.

Towards a sustainable economy, we are determined to make agriculture a driving force for growth and the main source of our food security. Hence, to improve agricultural productivity and re-establish the Philippines as a top exporter of agricultural products, the Agriculture and Agrarian Reform sector was given a budgetary boost of around 29.0 percent ​from its ​previous year’s allocation.

Meanwhile, to sustain our growth momentum and recognizing that infrastructure is the backbone of the economy, we have maintained infrastructure spending at 5.0 to 6.0 percent of GDP as set in the Medium-Term Fiscal Framework. This was allocated USD 23.9 billion or 25.3 percent of the national budget and equivalent to 5.5 percent of GDP.

The bulk of the infrastructure budget is intended for the development of physical infrastructure aimed at improving physical connectivity throughout the country through the construction of accessible road networks, railways, buildings, and flood control infrastructure, among others.

Significant budgetary support was also provided for social infrastructure development, which includes the construction of school buildings, hospitals, health centers, water, and power supply systems, as well as housing and community systems to support the quality of life and well-being of communities. Similarly, we have also provided funding for irrigation systems and reforestation projects.

To ensure that the Philippines becomes a viable investment destination, we are keen on improving our digital infrastructure, which was allocated to around USD 434.3 million, to accelerate the country’s digital transformation.

Acknowledging the importance of sustainable economic growth, we have significantly increased the budget for climate change adaptation and mitigation measures by about 60 percent compared to the previous year’s allocation. This will include investments in water sufficiency and renewable energy infrastructure, as well as alternative resources.

Promoting genuine inclusive growth, we have automatically appropriated some USD 14.77 billion to our Local Government Units (LGUs) as part of their National Tax Allotment. This is in addition to the USD 297 million allocation that they will receive as part of our Local Government Support Fund (LGSF).

In ensuring that this inclusive growth reaches the farthest regions, a total of USD 1.34 billion has been allocated as financial assistance for the Bangsamoro Autonomous Region in Muslim Mindanao as its government undergoes transition until 2025. This includes allocations for its Annual Block Grant; a Special Development Fund for the rebuilding, rehabilitation, and development of its conflict-affected communities; and the region’s share in taxes, fees, and charges.

Looking forward, the National Budget for Fiscal Year 2024 will prioritize shovel-ready infrastructure projects, investments in human capital development, and sustainable agriculture and food security, among others, for the continuity and sustainability of gains from this year’s priority programs.

To complement these priority programs, we have also been working hard on key structural reforms and introducing new ones that promote sound fiscal management, a green economy, and a more efficient and lean bureaucracy. Let me cite some of these reforms.

First, and here’s more good news—we are going digital! Just this month, the President issued Executive Order No. 29 directing the full adoption of the Integrated Financial Management Information System (IFMIS) in government agencies to ensure the efficient delivery of quality services to the public. This comes after Executive Order No. 170, issued in 2022, which directed the adoption of digital payments for government disbursements and collections. These twin EOs are big strides towards bureaucratic efficiency, encouraging the digitalization of government transactions. And soon, we hope to also pass the Progressive Budgeting for Better and Modernized (PBBM) Governance Bill the institutionalization of Public Financial Management (PFM) reforms such as the Cash Budgeting System.

Second, we are working on building a more agile, efficient, and responsive government workforce through the National Government Rightsizing Program. This will minimize and eliminate overlaps and duplication of functions and reduce costs, processing time, and other regulatory requirements in government transactions.

Third, for sustainability, we are pursuing a Green Public Procurement Roadmap wherein the government will procure common-use supplies and equipment items with green specifications.

And last but not the least, we are happy to share that the Congress of the Philippines passed before sine die the Philippines’ first ever Sovereign Wealth Fund, the Maharlika Investment Fund, which we expect to launch before the year ends. And we have with us today no less than the author of Senate Bill No. 2020 creating the Maharlika Investment Fund, with his 20/20 vision for economic growth, Senator Mark Villar.

We are really looking forward to seeing this boost economic development through strategic and profitable investments in infrastructure and other key sectors…with your investments, of course.

As you can see, the Philippines is back in business and means business.

No less than the World Bank declared that the Philippines will achieve above-middle-income status in the next two years. Fitch Ratings raised its outlook for the Philippines to "stable." And the S&P Global Market Intelligence forecasted that the Philippines may become a one-trillion-dollar economy by 2033.

Forecasts are not only good but very good: Following our 7.6 percent GDP growth in 2022, our real GDP has been projected to be the highest in the ASEAN region this year.

Analyzing the Philippines strong growth performance and economic resilience, World Bank Country Director Ndiame Diop at the Philippine Economic Briefing in Washington said that the Philippines' formula that resulted in our 7.6% growth is interconnected structural reforms + prudent macro fiscal and macro financial management.

But he does not know our secret formula: it’s the economic managers + PBBM and his entire cabinet + the whole of government in unity + our private sector = 7.6%.

And today we can add to the formula … PLUS Singapore investors and that makes it 7.6%++.

And so, we invite you to become our partner as we build an inclusive and sustainable economy that would not only uplift every individual, family, and business in the Philippines but would benefit the world and generations to come.

The time to invest in the Philippines is now.

As CEO Gupta said, the Philippines used to be the Darling of Southeast Asia. I am certain that with your investments and support, the Philippines will not only be the darling but also the Sweetheart of Asia. So we look forward to Passion Made Possible…in the Philippines.

Wasalamu alaikum wa rahmatullahi wa Barakatuhu.

Thank you. Maraming salamat po at Mabuhay.