Finance Secretary Benjamin Diokno said that the government will continue investing heavily in digitalization, technological innovation, and human capital development to ensure that the country remains competitive in a fast-changing and tech-driven global economy.

“Under President Ferdinand Marcos Jr.’s administration, we will put greater emphasis on pursuing technological innovations to build new industries, enhance the delivery of public services, and create many employment and investment opportunities,” Secretary Diokno said at an event organized by FinTech Alliance.ph, a trade association representing the digital finance space in the Philippines.

“All of these will allow us to bounce back stronger from the pandemic and ensure the long-term recovery of our economy,” he added.

According to a report released by the World Bank (WB) and the National Economic and Development Authority (NEDA), the rapid adoption of digital technologies can bolster the Philippines’ post-pandemic recovery and help the country achieve its vision of alleviating poverty.

The report highlighted the effective use of technological innovations in helping both the private and public sectors cope with mobility restrictions and other containment measures imposed across the country during the pandemic, ensuring the continuity of business operations and delivery of public services nationwide.

The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), for example, were able to continue collecting taxes amid the pandemic through its digital transformation program, which has expanded the range of electronic payment channels that allow taxpayers to file and pay their taxes online.

In line with this, Secretary Diokno said that he ordered the BIR and the BOC to continue accelerating their respective modernization programs to increase the government’s tax effort.

“The government expects to collect more revenues on the back of a faster and more broad-based economic growth. Thus, efficient and effective tax administration will be critical in funding our socioeconomic priorities,” Secretary Diokno explained.

He added that the government is committed to broadening financial inclusion through digital tools and channels, such as accelerating the rollout of the Philippine Identification System (PhilSys) and widening the reach of the branchless and digital-only Overseas Filipino Bank (OFBank).

Secretary Diokno also said that he aims to digitalize half of all retail payments and onboard 70 percent of the adult population to the formal financial system by 2023, a goal that he set when he was still governor of the Bangko Sentral ng Pilipinas (BSP).

These developments are also complemented by a wide array of game-changing reforms that Secretary Diokno said will help invite more fintech investments into the country.

“With the Corporate Recovery and Tax Incentives for Enterprises or CREATE Law, the government will pursue investments that are consistent with the Fourth Industrial Revolution. This will strengthen the culture of research, development, and innovation in the Philippines,” Secretary Diokno said.

He also noted that the amendments to the Retail Trade Liberalization Act, Public Service Act, and Foreign Investments Act will “widen the space for investments in and joint venture opportunities for enterprises employing cutting-edge technologies.”

With such an environment, Secretary Diokno stressed the importance of building a dynamic and highly-qualified workforce that is prepared to face technological disruptions head on and readily come up with innovative solutions that will, in turn, support the growth of the economy.

“We have a young, highly-skilled, and tech-savvy workforce. This is our strongest asset. The Marcos administration is strongly committed to increasing our investments in human capital development to equip tomorrow’s workforce to become globally competitive stewards of innovation,” said Secretary Diokno.

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