Finance Secretary Carlos Dominguez III has said the Philippines’ share in the United Kingdom (UK)’s Cross-Government Prosperity Fund will be an “invaluable tool” that would help the country post a strong recovery from the COVID-19 pandemic and flourish in the emerging New Economy.

Secretary Dominguez thanked the government and people of the UK for its continuing support to the Philippines at this crucial time, which is made especially meaningful as the two countries mark this year their 75 years of bilateral relations.

He and British Ambassador Daniel Pruce signed on Monday (March 15) the memorandum of understanding (MOU) for the Philippines’ participation in the UK Cross-Government Prosperity Fund for the ASEAN (Association of Southeast Asian Nations) Economic Reform Programme and the ASEAN Low Carbon Energy Programme.

“Our share from the Prosperity Fund will be an invaluable tool in helping us recover strongly from the pandemic and thrive in the emerging New Economy. Overall, the fund will support the realization of President Duterte’s development goals of inclusive growth and prosperity for the Filipino people,” Secretary Dominguez said during the event held via Zoom.

Also present at the virtual event were Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, Securities and Exchange Commission (SEC) Chairman Emilio Aquino, and Insurance Commissioner Dennis Funa. The BSP, SEC and the Insurance Commission (IC) are co-lead agencies of the Department of Finance (DOF) in the implementation of the work packages under the MOU.

As the lead agency for the implementation of the MOU covering the Philippines’ initiatives under the Prosperity Fund, the DOF commits to a productive collaboration with its partner-agencies to complete the programs by March 31, 2022, Secretary Dominguez said.

“We assure the people and the Government of the United Kingdom, represented here today by Ambassador Daniel Pruce, that the Prosperity Fund will be used with efficiency, transparency, and prudence,” he added.

Ambassador Pruce said: “For myself, for the Embassy, for the British Government, it’s an honor to be able to work with our partners here in the Philippines towards sustainable growth and working on a development plan which is helping accelerate key initiatives in the financial sector, which forms such an important role in achieving an inclusive and green economic recovery, especially as we emerge in the coming months from the effects of the Coronavirus pandemic.”

The Ambassador also paid tribute to the numerous initiatives that the Philippines has put in place or has underway to help realize its shared vision with the UK of building back “stronger, smarter, (and) greener.”

The Philippines’s share in the Fund will help develop the country’s capital markets, expand the use of financial technology (Fintech), and promote the use of global accounting standards.

This Fund will also assist the Philippines in implementing programs that aim to increase the country’s energy efficiency and the adoption of low carbon energy through the use of green finance.

Under the Fund, a total of £19 million (approximately P1.3 billion), will be shared among six ASEAN countries (Philippines, Myanmar, Indonesia, Malaysia, Thailand and Vietnam), to develop their respective capital markets; encourage improvement in their accounting standards; and expand the use of FinTech or financial technology.

Secretary Dominguez said these initiatives under the ASEAN Economic Reform Programme will help improve the Philippines’ business environment to aid it in returning to the path of inclusive and sustainable growth.

He said strengthening the domestic capital markets will not only help reduce the cost of doing business and broaden financial inclusion among Filipinos, but will also provide the Philippines a solid foundation for international companies to invest and operate in the Philippines.

The increased foreign businesses here, in turn, would mean more funds to support higher levels of long-term investments and sustainable quality job creation, Secretary Dominguez said.

The Fund will also assist the Philippines’ financial institutions in adhering to international accounting standards, which will strengthen the transparency, accountability, and efficiency of its financial sector.

Another project covered by the Fund is the establishment of an industry FinTech sandbox to encourage Filipino startups to come up with innovative financial products and co-create solutions to society’s most pressing issues, Secretary Dominguez said.

“Doing this would support the government’s goal of creating globally competitive industries and building more technology-empowered and Filipino-made companies,” he said.

Meanwhile, under the ASEAN Low Carbon Energy Programme, £15 million (about P1 billion), will be shared among the Philippines and the five other ASEAN country-recipients for projects that will help support inclusive growth and poverty reduction through green finance and energy efficiency projects.

As the chairman-designate of the Climate Change Commission (CCC), Secretary Dominguez said the Low Carbon Energy Programme is in sync with the Duterte administration’s proactive efforts to adopt climate-resilient and adaptation strategies to ensure our country’s sustainable growth over the long term.

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