PHL, UK ink MOU on Asean reform, low-carbon program

THE Philippines signed on Monday a Memorandum of Understanding (MOU) for the country’s participation in the United Kingdom (UK)-Cross-Government Prosperity Fund for the Asean Economic Reform Programme and the Asean Low Carbon Energy Programme.

Finance Secretary Carlos G. Dominguez inked the agreement on behalf of the Philippine government while UK Ambassador to the Philippines Daniel Pruce signed for the British government.

The signing of the MOU comes as the Philippines and the UK mark 75 years of bilateral relations this year.

Under the Prosperity Fund, a total of  £19 million (approximately P1.3 billion), will be shared among six Asean countries (Philippines, Myanmar, Indonesia, Malaysia, Thailand and Vietnam) for the Asean Economic Reform Programme; while £15 million (about P1 billion) will be shared among the Philippines and the five other Asean country-recipients for the Asean Low Carbon Energy Programme.

The Asean Economic Reform Programme seeks to develop countries’ capital markets, encourage improvement in their accounting standards; and expand the use of financial technology.

On the other hand, the Asean Low Carbon Energy Programme aims to support inclusive growth and poverty reduction through green finance and energy efficiency projects.

Timely support—Dominguez

In his speech, Dominguez thanked the British government for including the Philippines as one of the recipients of the Prosperity Fund in the Asean region, saying this will help the country recover from the Covid-19 pandemic and thrive in the emerging new economy.

Dominguez said the Philippines’s share in the Prosperity Fund for Asean Economic Reform Programme will help improve the country’s business environment to aid its return to the path of inclusive and sustainable growth.

“Strengthening our capital markets will help reduce the cost of doing business, and broaden financial inclusion among Filipinos to provide us a solid foundation for international companies to invest and operate in the Philippines. Increased investments would mean more funds to support higher levels of long-term investments and sustainable quality job creation,” he said.

Moreover, Dominguez said the fund will also help the country adapt quickly to the boom of digital technology through the establishment of an industry fintech sandbox.

“Filipino startups will be encouraged to come up with innovative financial products and co-create solutions to society’s most pressing issues. Doing this would support the government’s goal of creating globally competitive industries and building more technology empowered and Filipino-made companies,” he said.

As for the Philippines’s share in the Prosperity Fund for Asean Low Carbon Energy Programme, Dominguez said this will help the country facilitate green finance and energy efficiency, which is in line with the government’s efforts to adopt climate resilience and adaptation strategies.

“As the lead agency for the implementation of this Memorandum of Understanding for the Prosperity Fund, the Department of Finance commits to a productive collaboration with partner agencies to complete the program by March 31, 2022,” he said.

Clear vision—Pruce

For his part, Pruce said in his speech that the signing of the MOU brings back the two countries together in a bid to “build back stronger, to build back smarter and to build back greener.”

He said the United Kingdom stands ready to share its best practices and provide policy support and capacity building as a leader in global financial services.

“Our vision is clear. And I think it’s a common vision, we want to see a robust financial sector which will help sustain our economists, then we will take forward financial inclusion through policies that enable access to the unserved and underserved members of society,” he said.

“We want to see well-functioning financial markets to create potential capital for climate action and other emerging needs. And underpinning these aspirations we want to see a regulatory framework that propels economic recovery and supports long term growth, and which is resilient in times of crisis,” he added.

Aside from Dominguez, other Philippine government officials who attended the virtual MOU signing ceremony are Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno, Securities and Exchange Commission Chairman Emilio Aquino and Insurance Commissioner Dennis Funa.

Image credits: BRITISH EMBASSY MANILA