The Department of Finance (DOF) said Thursday it issued new privatization guidelines to expedite the sale of non-performing public assets, boost government revenue and encourage wider investment.
The initiative will allow the national government to collect additional non-tax revenues while also encouraging Filipinos to acquire and invest in these assets.
“Privatization of non-performing assets is among the strategic moves to raise much-needed revenues to fund the growing needs of our people. And by opening the doors for ordinary Filipinos to take part, we are also creating investment opportunities for them while contributing to nation-building,” Finance Secretary Ralph Recto said in a statement.
DOF Undersecretary for Privatization and Partnerships Group (PPG) Catherine Fong said the assets do not generate economic activity or government income, and instead cost the government money to maintain.
“We allocate budgetary support for the Privatization Management Office [PMO] for upkeep and pre-disposition activities, and instead of raising revenue and helping stimulate the economy, these assets are a burden,” she said.
The DOF is intensifying efforts to boost non-tax revenues through privatization, in line with Executive Order No. 323, which established the Inter-agency Privatization Council (PrC) and the PMO.
The PrC oversees all national government privatization initiatives, while the PMO handles the disposition of assets of government financial institutions and certain government-owned or controlled corporations (GOCCs).
The PrC is chaired by the finance secretary, with members including the secretaries of budget and management, trade and industry, economic planning, and justice. The national treasurer and the chairman of the Presidential Commission on Good Government serve as non-voting members.
The revised guidelines, effective March 11, 2025, aim to streamline and harmonize privatization policies and processes, allowing for unsolicited offers, alternative modes of disposition, and the use of brokers. They also mandate the creation of a digital asset registry.
“We sincerely hope to receive offers from ordinary citizens wishing to own their own land while helping the national government create better value by speedily disposing of these assets,” Fong said.
Asset disposition is publicized through newspapers and government websites. The PrC approves the terms and conditions of sale and sets the minimum base price, typically the fair market value.
The guidelines also aim to enhance transparency and accelerate property disposition through defined timelines and a streamlined purchase process.
