September 8, 2020
Bangko Sentral ng Pilipinas Governor Benjamin Diokno; Bureau of Internal Revenue Commissioner Caesar Dulay; Attorney Maria Cristina Barbara Concepcion, President of the Trust Officers Association of the Philippines; fellow workers in government; friends in media: good morning.
Thank you for inviting me to the launching of the digital platform for PERA or Personal Equity and Retirement Account.
I congratulate the teams from Bangko Sentral ng Pilipinas and the Bureau of Internal Revenue that made this important digital initiative a reality. This is a major step towards the broadening of financial inclusion by enabling a convenient, safe, and seamless medium for both investment and retirement savings for the Filipino people.
The PERA Law was enacted in 2008, but its implementation was delayed due to taxation and regulatory issues. The Duterte administration took on the challenge of resolving these issues for this powerful investment instrument to flourish and finally benefit the Filipino people.
Not only did we resolve the issues, but we made this financial concept a working system that is easily accessible to the people.
With the digital PERA platform that we have launched today, more Filipinos will have access to affordable PERA products at their fingertips. This will make it possible for users to be acquainted with financial products, develop financial literacy, settle their transactions, and track their investments through their mobile phones twenty-four seven anywhere in the world.
The leap into digital transactions will reduce processing time and lower the transaction costs for millions of Filipinos.
This will especially benefit our overseas Filipino workers. With all these PERA products made digitally available, our hope is for our OFWs to make the most of their hard-earned salaries from working abroad, until such time that they decide to retire and come home to be with their loved ones. Initiatives such as the digital PERA is the least this government can do for the heroic Filipinos working overseas and helping support our economy.
PERA should attract not only those who are approaching their retirement years, but even the younger generations who are already priming to enjoy their retirement in style.
PERA will also produce a new source of capital to power the nation’s growth while assuring the personal financial security of ordinary Filipinos. It will help deepen the country’s local debt market, as it would convert savings into investable funds that can be tapped by Philippine companies.
The Department of Finance has always advocated for the adoption of new financial technologies or Fintech to reduce transaction costs and to improve revenue monitoring across the board. Through the current pandemic that we are experiencing, the importance of this transition to digital transactions has been magnified. The digital PERA is a historic step not only into the New Normal, but also into the New Economy.
I thank the teams responsible for this great achievement as well as the Trust Officers Association of the Philippines for supporting this program and building public awareness about it. We should encourage life insurance and pre-need companies also, to take on an active role in promoting savings mobilization through PERA.
We will certainly need a massive public information campaign about the benefits of building a personal retirement fund–so the Filipino people can take full control of their future through personal financial management.
Thank you again and congratulations to all.
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