DEPARTMENT OFF

INANCE

I
NCL
USI
VED
EVE
LOPM
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HARN
ESS
INGTHE
VIR
TUOU
SC Y
CLE
OFGROWTHAND
g
oodgov
ernanc
e

20 ANNUAL
14 REPORT
 T
ABL
EOF
C
ONT
ENT
S
ME
SSAGE O
FTHEPRE
SIDENT
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SSAGEFROMTHESECRETARY
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ECONOM
ICH
IGH
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.06
F
ISCA
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.10
NAT
IONA
LGOVERNMENTBORROW
INGAND
L
IAB
IL
ITY MANAGEMENT
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14
TAXADM
INI
STRAT
IONANDGOVERNANCE
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.16
PH
IL
IPP
INEEXTRACT
IVEINDU
STR
IESTRAN
SPARANCYIN
ITIAT
IVE
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.19
F
INANC
IALINC
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20
LOCA
LGOVERNMENTF
INANCE
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PR
IVAT
IZAT
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INTERNAT
IONA
LIN
ITIAT
IVE
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.32
CAP
ITA
L MARKETDEVE
LOPMENTANDCORPORATEGOVERNANCE
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.35
IMPROV
ING OPERAT
ION
SANDUT
IL
IZINGTECHNO
LOGYFOR
BETTERDE
LIVERY O
FSERV
ICE
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HUMANRE
SOURCE
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..37
ORGAN
IZAT
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..42
A
SSI
STANTSECRETAR
IES
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.43
D
IRECTOR
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.44
DO
FCLU
STER
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.46
D
IRECTORY O
FDO
FOF
FICE
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.48

A
BOU
TTH
E
C
OVE
R
INCLUS
IVEDEVELOPMENT
H
arne
ssfingtheV
fi
rtuou
sC yc
fle
o
fGrow thandGoodGo ve
rnance

Theco vera rt,show fingv fibran t

,d yn amfi
csp fla she so fcoflorfo rm finga
c
fi
r cfle
,rep resen t sthev firtuou sc ycflethePh fi
fl
fipp fine shase arnedfo rfi
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afte rre sto r
fingconfiden cefinfi
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Thev fi
rtuou sc ycfleh a sse fl
f-su s
t afin
fingandse fl
f-re finfo
rcfinge flemen ts
,
ea chaugmen tfingthepe rpe tu atfiono fthec y cflefo rwh fi
chm fi
fl
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ou rpeop fle
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M
ISS
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ISION
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HARNESS
INGTHEV
IRTUOUSCYCLEOFGROWTHANDGOODGOVERNANCE 1
 MANDATE
Unde
rExecu
tfi
veOrde r
s127,127-Aand292 ,
theDep
artmen to
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fi
srespon
sfib
flefo
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:

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tu t
fion a
fl
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s tratfiono ffi scaflpofl
ficfiesfincoo rdfinatfion
w
fitho the rcon cernedsubd fivfis
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fionso fa fl
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se cto rdeb t
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ays
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2 ANNUALREPORT2014
M
ESS
AGEO
FTH
E
P
RES
ID
ENT

M
ywa
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stg
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tfing
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r2014Annu
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Matuw fid
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t
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amp fle
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rende
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se fle
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fl
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Iw
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BENIGNOS .AQUINO III

Pres
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Repubfl
fi
cofthePh
fi
fl
fipp
fine
s

HARNESS
INGTHEV
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 La st2013 ,the
Phfi
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ved
finve stmen tg r
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fi
t
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tfime.In2014 ,the
coun tryfu r
the r
mo vedupthe
finve stmen t
grades cafle
so f
Moody sand
Standa rd
andPoo r
s.

4 ANNUALREPORT2014
M
ESS
AGEF
ROMT
HE
S
ECR
ETA
RY
V
fi
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10 ANNUALREPORT2014
In2014 ,to
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HARNESS
INGTHEV
IRTUOUSCYCLEOFGROWTHANDGOODGOVERNANCE 19
 f
fi
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HARNESS
INGTHEV
IRTUOUSCYCLEOFGROWTHANDGOODGOVERNANCE 2
1
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22 ANNUALREPORT2014
fl
ocaflg
ove
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F
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BLGFPROGRAM IMPACT

REVENUEGENERAT IONPROGRAM-BLGFp rov

fidedte chnfi
cafl
Theeffortre su
fl
tedfinacofl
flec
tfioneffic
fiencyfinthea
ver
ageof98.0
ass
fi
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cfi
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percentcofl
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c
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fl
flo
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comesou rce
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andmen torfingto
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LGUF INANC IAL MON ITOR INGSYSTEM- Thee fle

ctronfi
c
Thesubmfi
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PERFORMANCESTANDARDSANDRAT INGSYSTEM- The

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fi
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ttreasu
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INTEGRATEDINFORMAT ION MANAGEMENTSYSTEMS (I2MS

)-
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tfionandadop t
fionoftheI2MSw aspur suedfin2014
The12MScomb finestherefl
atedcomponent
softheBLGFp rog
ram
s
byph ase s
,cover
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fionS ys
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fin
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stemfo re as
fie
rm anagemen
tandopera
tfion
sand
mon
fi
to r
fing)
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ystem,Do cumen t
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v
fingSystemandBLGFOpe rat
fions
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tem .

ENHANCEDELECTRON ICSTATEMENTOFRECE IPTSAND

EXPEND ITURES (ESRE )VERS ION2 .1- Theenh an cedsystem
provfidesthef acfi
fl
fi
tytofo re castrevenue sande xpendfi
turesb ased
Atot a
flof1,486tra
fin
fing
s ontheenh ancedsy
stemfo
rmunfi
cfip
afl
fi
tfie
s
onam acroe conom fi
cmode flandf r
amewo rk;De termfinefin
an cfi
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nat
fionwfidewerecondu c
tedtofam
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fi
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fi
zetheLGUsontheuseo f
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ch fi
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ty.

HARNESS
INGTHEV
IRTUOUSCYCLEOFGROWTHANDGOODGOVERNANCE 23
 fl
ocaflg
ove
rnm
ent
F
IN A
N CE
Compa
rat
fi
veCofl
flec
tfionE
ffi
c
fien
cy
FY2013vsFY2014

T
arge
t(finPb
fi
fl
fl
fion
) Co
fl
fle
ctfion
(finPb
fi
fl
fl
fion
) E
ffi
c
fien
cy
2013 2014 2013 2014 2013 2014
Re
aflP
rope
rtyT
ax 58
.72 59
.68 45
.60 47
.99 78% 80%
Bu
sfine
ssT
ax 52
.56 58
.27 55
.14 62
.46 105% 107%
F
eesandCh
arge
s 16
.61 16
.79 16
.14 19
.84 97% 118%
E
conom
fi
cEn
terp
rfi
se 15
.4 16
.73 16
.92 17
.67 110% 106%
TOTAL 143
.29 151
.47 133
.79 147
.97 93% 98%

Consen susBu fi
fldfing
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shop forth e
Deve
flopm ento fth e
Manuaflonth eE v aflua
tfion
ofLocaflTreasur y
Operatfion
s(ME L TO )

2
4 ANNUALREPORT2014
 Tr
afin
fin
gWo
rkshoponth
e
Dep
floym entandU seof
theEnhan cedE
fl
ectron
fi
c
Sta
tem en tofRec
efip
tsand
Expendfi
turesve
rs
fion2.1
(eSREv2 .1)Sys
tem sfor
Prov
fin
ce sandCfi
t
fie
s

Consen susBu fi
fld
fing
Work
shoponth e
Enhan cem ento f
Ass
essm en tEv afluat
fion
/
Examfinatfionand
Mon
fi
torfing Manua fl
(AEEM )fo rNon -
Compu t e
rfizedLo cafl
Governm en tUn fi
ts(LGU s)

HARNESS
INGTHEV
IRTUOUSCYCLEOFGROWTHANDGOODGOVERNANCE 25
 fl
ocaflg
ove
rnm
ent
F
IN A
N CE
Mun
fi
cfipa
flDeve
flopmen
tFundO
ffi
ce(MDFO
)

Mun
fi
cfipa
flDeve
flopmen
tFund-Se
condGene
rat
fionFund
(MDF
-SGF
)

Aso
f31De cembe
r2014 ,the MDFO
-SGFre a
chedtoabou tP12.4bfi
fl
fl
fionwhe re
finP11 .6b fi
fl
fl
fionw
asafl
readya
fl
flo
cated
tod
fi
f
feren
tfin
anc
fingw
findows
;theb
afl
anceo
fP700m fi
fl
fl
fioncou
fldbetappedfinaccefle
ratfingLGUde ve
flopmen
taflp
roje
cts
.

P
art
fi
cufla
rs ALLOCAT
ION

1
. Mun
fi
c
fip
aflDe
veflopmen
tFundP
roje
ct 2
,685
.00

2
. D
fi
sas
terM
anagemen
tAs
sfi
stan
ceFund 2
,300
.00

3
.Pro
jec
tTe
chn
fi
caflA
ssfi
stan
ceandCon
tfingen
cyFund 50
.00

4
. Refin
anc
fingF
acfi
fl
fi
ty 1
,000
.00

5
.Prog
ramL
end
fing 2
,000
.00

6
. M
fi
fl
flenn
fiumDe
veflopmen
tGo
afl
sFund 508
.00

7
. M
find
anaoB
asfi
cUrb
anSe
rvfi
cesSe
cto
rPro
jec
t 450
.00

8
. Pub
fl
fi
c -P
rfi
vateP
artne
rsh
fipFund 1
,000
.00

9
. Ph
fi
fl
fipp
fine W
ate
rRe
vofl
v
fingFund 500
.00

10
.Ag
rar
fi
anRe
formCommun
fi
t
fie
sPro
jec
tII
_a/ 285
.00

11
.Mfind
anaoRu
raflDe
veflopmen
tPro
jec
tII_
a/ 100
.00

12
.LagunadeBayInstfi
tut
fion
aflS
trengthen
fingand
63
.00
Commun
fi
tyPa
rt
fi
c
fipa
tfion(L
ISCOP )_d/

13
.In
teg
ratedCo
ast
aflRe
sou
rce
sMan
agemen
tPro
jec
t_a
/ 50
.00

14
.Lo
caflGo
vernmen
tFfin
anceandDe
veflopmen
tPro
jec
t_b
/ 136
.53

15
.P rog
ram sfo
rE s
sen
tfi
a
fl Munfi
cfipafl
,Inf
ras
tructure
508
.44
Ut
fi
fl
fi
tfie
s,Mafin
tenan
ceandEng fineerfingDeve
flopment_c
/

TOTAL 11
,635
.96
_
a/Lo
anfo
rLGUequ
fi
tytoODAsubp
roje
ctfin
anc . .
fing _b
/Ffin
ancedb
ySGFduetoLGUo
ver
sub
scr
fib
fing
finODAP
roje
cts
_
c/30%o
fthesub
scr
fip
tfioncomponen
twa
sfin
ancedf
romtheSGF _d
/Br
fidgeF
fin
anc
fi
ng

26 ANNUALREPORT2014
Ongo
fingF
finan
cfing W
findow
sfundedth
rough MDF
-SGF
Fo
r2014a flone
,the MDF -SGFapprov
edsub
tprojec
tsre
achedtoaboutP2.5b
fi
fl
fl
fion
for34LGU scoverfin
g40subprojects
wh
fi
chprov
fidesforba
sfi
cfin
fra
stru
cture
s,e
conomfi
candrevenue
-gene
rat
fin
gser
vfi
ces
,dfi
sas
terp
reven
tfionandreh
abfi
fl
fi
t a
tfion
,
amongothe rs
.

Impfle
- CAF
No
.of To ta
fl
P
roje
cts men
tfing fi
ssued fin No
.ofSP
s Re
flea
ses
finP M
fi
fl
fl
fion
LGus Re
fleases
Agency PM fi
fl
fl
fion

Loan G
ran
t GOP

Agr
arfi
anRefo
rmCommun
fi
t
fie
s
DAR 2
,981
.4 161 523 497
.9 497
.9
Pro
jectII

RP-Jap
an In
crea
sefinFood
308
.5 243 752 253
.7 253
.7
Produc
tfionProg
ram

Na
tfiona
flP
rogramSuppo rt
Env
fironment
aflNatu
rafl 159
.6 23 41 143
.3 143
.3
Re
sou rcesMan agementProje
ct

Hea
fl
thSec
torRefo
rmAgend
a
DOH 497
.9 20 25 259
.4 204
.3 463
.7
Suppor
tProgr
am

Infra
structurefo
rRu r
afl
Product
fi
v
fityEnhancemen t DA 298 21 29 296
.7 296
.7
Sector
-GOP

L
agun adeB ayIns
tfi
tut
fion
afl
S
treng thenfingandCommun fit
y 136 9 23 59
.9 46
.2 106
.1
P
art
fi
cfipat
fionP ro
ject-AF

M
findanaoRu
raflDe
veflopmen
t
3
,395
.8 242 951 2
,837
.8 2
,837
.8
P
ro jec
tII

Met
roCebuDeve
flopmen
t
1
,485
.0 1 4 739 739
Pro
jec
t3158

Met
roCebuDe
veflopmen
t
287 1 3 200
.4 200
.4
Pro
jec
t

Integr
atedCoas
taflRe
sou
rce
s
185
.7 14 14 98
.7 76
.2 174
.9
ManagementP
roject

TOTAL 9
,734
.8 735 2
,365 561
.2 4
,855
.6 296
.7 5
,713
.5

On
gofin
gFo
refi
gnA
ssfi
s
t edP
roj
ect
s(FAP
s)a
sof31D
ecemb
er2014

HARNESS
INGTHEV
IRTUOUSCYCLEOFGROWTHANDGOODGOVERNANCE 2
7
 fl
ocaflg
ove
rnm
ent
F
IN A
N CE
MDFOa sFundCondufi
tfo
rOffi
c
fia
fl beencomp fle
tedwh fi
fle8p rojectsa res tfi
fl
fl
Deve
flopmen
tAss
fi
stance(ODA) ongo fing.Fortho seongo fingFAP s,ato taflof
P5.7b fi
fl
fl
fionh asbeenre fleased (comb finatfion
Pro
jects
offlo
an s
,g rantsandre flease sfromtheGOP )
Oneo fthem a
jorfunctfionsof MDFO fi
sto outo ftheto taflpro je ctco stofP9 .7b fi
fl
fl
fion.
servea sfundcondufi
tfo rForefign -A
ssfi
sted Thebenefi cfi
arfie
so fthere flea
ses finc
flude735
Pro
je ct
s (FAPs)orO fficfi
a
flDe veflopmen t LGU sw fi
th2 ,365subp roje ctsrefl
a tedtothe
Ass
fi
stan ce(ODA )proje ctsofp ar tner en v
fi
ronmen t
,so c
fiafl
,fl
fi
vefl
fihoodando the r
Nat
fiona
flGo vernmentAgen cfies(NGA s)
. fin
fra stru c
turep rfiorfi
typ ro jects
.
Asof31De cembe r2014 ,41FAP shave

MDFO
-Po
fl
fi
cyFo
rmu
fla
tfionA
ctfion

D
fi
sas
ter Managemen
tAs
sfi
stan
ceFund
(DMAF
)
A
.Inte
res
tRateAd
jus
tmenttoY o
flanda-Af
fec
tedLGUs(MDFO -PGBReso
flu
tfion
No
.07-03
-24
-2014
)wfi
thex
fi
stfing
floansfrom MDFOfo
fl
flow
fingthes
chemeasp re
sen
tedbe
flow
:

1
. In
terestr a
teso fex
fi
stfing
flo anso
fLGU saf
fectedbyTyphoonYo
fl
and aandm agnfi
tude7.2
ea
rthqu akefl
ast15O c tobe r2013wfi
fl
flbereducedto3percen
treta
fin
fingthe
fi
rcurrent
rema
fin
fingrep aymentpe rfiod;or

2
. The
finte
restr
ate
ssha
fl
flberedu
cedto3pe rcen tw
fi
thare s
truc
turedrep
aymentpe
rfiod
ofe
fi
ther4,10
,or15ye ar
sdepend
fingonthefi
rremafin
fingrep
aymentper
fiod
.

Rema
fin
fingRepaymen
t Res
truc
tured
Pe
rfiod Repaymen
tPe r
fiod
1
-4ye
ars 4ye
ars

5
-9ye
ars 10ye
ars

10yea
rsandabovebutno
t
15ye
ars
mo
rethan15year
s

No
.ofLGU
sAf
fec
tedby No
.ofSubp
roje
cts P
roje
ctCo
stfinP m
fi
fl
fl
fion

Op
tfion
s 7
.2 7
.2
T
yphoon T
yphoon O
rfig
fina
fl Re
struc
tured LGU
Magn
fi
tude Magn
fi
tude
Yo
flanda Yo
flanda Cost(P+I) (P+I) Sav
fing
s
Ea
rthquake Ea
rthquake

Cur
rent
Repaymen
t 34 29 36 31 395
.3 322
.4 72
.9
Yea
rs
5 3 0 3 0 52
.1 46
.1 6
.0

10 3 0 3 0 21
.2 16
.0 5
.2

15 5 1 5 1 310
.7 255
.9 54
.8

TOTAL 45 30 47 32 779
.3 640
.4 138
.9

28 ANNUALREPORT2014
Atotaflo
f75LGU shasava
fi
fledo fthe r
efinan c
fing
,andoth er
fin
frastru
cture
fin
terestredu ctfion/
rest
ru ctu r
fingfo rboth r
equ fi
rem entsofLGU s
.Th ep re
scr
fip
tfi
veperfiod
earthquak eandt yphoonY ofland a- af
fec
ted s
etfinapp rov
fin
g3p ercentfin
teres
trate,ona
areas
,benefi tt
fingato ta
flLGUs avfingso
f c
ase- to-
c asebas
fi
stoLGU sa ffe
ctedb yca
fl
am fi
tfi
es
P138.9m fi
fl
fl
fion
. r
ega rdfl
essofthed a
teo foccurrence
fisupto
D
ecemb e r2015onfl
y
.
B
.Adop tfionof3pe rcentfixedfin
tere s
trate
todfi
sas ter-a
ffe c
tedLGU s
(MDFO -PGB
Reso
flut
fionNo.08 -11-24-2014)-apo fl
fi
cytha
t
prov
fidesspe c
fi
aflr
atestoLGUsubp rojectsnot
coveredb yDMAF ,suchasequfi
tycoun terp
art
s,

DOLORES
,EASTERNSAMAR

W
ate
rSupp
flySy
stemLeve
flI
II
(15P
obfl
acfi
onB
aran
gay
sofD
ofl
ore
s)
P35
,877
,503
.27

1
. Groundw a te rDe ve
flopmen t(Wefl
flDr
fi
fl
fl
fing
)
a
.Deep We fl
flPumpHou se
b
.Pump fingEqu fipmen tandA ccesso
rfies
2
.S torageF acfi
fl
fi
t y
3
. W ate rT re atmen tF a cfi
fl
fi
ty
4
.T ran sm fi
ssfion M afins
5
. Dfi
strfibutfionNe two rk
a
.P fipeNe two rk
b
.F fi
reP ro te ctfion
6
. Servficeconne ctfions
7
. Mfi
s cefl
fl
aneou s Item s
a
. Con stru ct
fiono fP erfime
terFence
b
. Powe rSupp fl
y
c
. A cce ssRo ad
d
.P a vemen tDemo fl
fi
tfionandRestor
atfion

SANJUAN
,LAUN
ION

Expan
sfiono
fPub
fl
fi
cCeme
tery
B
aran
gay
fl
fl
fiSu
r
,SanJu
an,L
aUn
fi
on
P13
,447
,207
.30

.Demo
1 fl
fi
tfionandE x
ca v
atfionofOfld
Ceme te ryStructures
.E
2 ar
th-fifl
fl
fing
3
.Por
tfl
andCemen tCon cre teP
avement
4
.MassG r ave
5
.CondoT ypeCon creteT omb
6
.Landsc apfingand
7
.Per
fimete rF enc
fingfortheCo veredArea

HARNESS
INGTHEV
IRTUOUSCYCLEOFGROWTHANDGOODGOVERNANCE 29
 fl
ocaflg
ove
rnm
ent
F
IN A
N CE

TUNGAWAN
,ZAMBOANGA
S
IBUGAY

Const
ruc
tfionofPubfl
fi
c Ma
rke
tcum
Tran
spor
tT e
rmfina
fl
P16
,913
,380
.00

Three(3)Sep ar ateone
sto
reyre
fin
for
ced
concretebufi
fldfings
:

1
. Two(2)bu fi
fld
fingsarefintendedfo rd r
ygood s:
a
. Bufi
fldfing2 :D ryGood s/Comme rcfi
afl
:
8st afl
fl
s=140sq .m .
b
. Bufi
fldfing3 :D ryGood s:10s ta
fl
fls=
217sq .m .
c
. Com fo r
troom s=35sq .m
.
d
.B ags a kanA re a
e
.P arkfingA re aandUn fload
fingbay stha tc
an
accommod ateatfle
a st20veh fi
cfle
s

2
.O therBu fi
fldfing fi
sfo rthe Integ r
atedTranspo r
t
Term finafl=F floo rA re a198sq .m.
a
.G roundF floo rfo rthep assenge r
s
wafi
tfinga re a
b
. Com fo rtroom s
c
. Fou rBe rthfingB a ysfo rBu sesandLoadfing/
Unfload finga re a
:
V an s PASS
I,ILO
ILO
T r
ficy cfle
H ab a
fl-H ab afl
d
. Me z z anfinefo rtheo ffi
ceso fthem ark
et Satefl
fl
fi
teHeafl
thCen ter
andte rm finafladm fin
fi
strat
fions finBa rangaySa flngan
Pa
ss
fi
,I
fl
ofi
flo
,Br
gy.S
afln
gan
3
. Suppo
rF a
cfi
fl
fi
tfie
s:Construc
tfionofEflevated P20,000,000
.00
Wa
terTank
,W a s
teTre
a tment,D ra
finage
Sys
tem,RoadNe twor
k,andthe Ins
t a
fl
fl
atfiono
f 1
. Loca tedfinLo tE
-27,P sd-06
-0108085 (OLT)fin
CCTVC amera sandStreetLfigh
ts Bar
ang ayS aflngancoverfinganare aof10
,000sq.m
. Med
2 fica
flequ fipmentsu cha sb
a sfi
cemergency
obs
tetrfi
candnewbo rnc areequfipment
,furn
fi
ture
andfi
xtu res

Ma
jorComponen
toftheHea
fl
thCen
ter
Se
ctfion
s Se
ctfion
sA rea
(sq.m.)
B
fi
rth
fingA
rea 30
OB W
ard 20
S
ter
fi
fleandsub
-ste
rfi
fleA
rea 12
S
taf
fLoungeA
rea 6
L
abo
rRoom 30
Den
taflRoom 15
TBDOTSa
rea 8
C
fl
finfi
caflL
abo
rato
ry 12
Ph
arm
acyw
fi
ths
tor
agea
rea 15
Eme
rgen
cyRoomcon
sufl
tat
fiona
rea 30
P
ant
ry 15
O
ffi
ceo
ftheC
fi
tyHe
afl
thO
ffi
cer 20
Doc
to r
'sOn -Du t
yRoom 15
Admfin
fi
str
atfi
veOffi
ceandNu
rse
's
25
and Mfidw
fi
fe'sOffi
ce
Sto
rageA re as 6
RS
IOffi
ce 15
M
afleandF
ema
fleT
ofi
flet 15

30 ANNUALREPORT2014
P
RI
VAT
IZ
AT
ION
A f
p
fin2013
te
rfi
rtheh
vat
fi
z
,theP
a
t
fisto
fiono
rfi
vat
r
fi
c a
flP24b
ftheFoodT
fi
zatfion M
fi
fl
fl

an
fion
erm fin
agemen
a
flIn
tO
c
.
ffi
ce
(PMO )w a
sab fletoob tafinsomere sour cesto
unde rta keaph y s
fica
fl
finven to ryfintendedto
estabfl
fi
shacomp reh en s
fi
v ea ss etr egfi
stryth a
t
w
fi
fl
fl
fidentfi
fy
,su rv eyandr e con cfi
fleth ea ssets
assfi
gn ed /tr
an s
f e r
r edtoPMOb yv ar
fiousen t
fi
t
fie
s,
finc
fludfingthep rop ert
fie
sa ssfi
gn ed toPMOund er
thee xp fi
rat
fionte rmo ftheA ssetP rfi
vatfi
zat
fion
Tru stcomp r
fis
fing7t ran sfe rreda sse ts
,
12Go v ernmen tco rpo ratfion sand43
othe ra s sets
.

The finvento rycon t

finued fin2014th at
resufltedfin
fiden tfi
fyfing22 ,000 fl
andho fld
fings
unde rthede fun ctBo ardo fLfiqu
fida tors
(BOL ),wfi
thcu rren te s
tfimatedv aflueo fP28
b
fi
fl
fl
fion.Inadd fi
t
fion,thePMOunde r too kthe
recon c
fi
fl
fi
a t
fiono fflongo verduefin an c
fi
aflcfl
a
fims
con ve yedb ythev arfiousGF I
stotheNG .

HARNESS
INGTHEV
IRTUOUSCYCLEOFGROWTHANDGOODGOVERNANCE 3
1
 fi
nterna
tfi
ona
fl
fi
n
fi
tfi
a
tfi
ves
ASEANF ramework TheAFM IS fi
safo rumo rg anfi
zedtop romo te
thereg fiona sana tt
r actfi
ve finve s
tmen t
Agreement destfina
tfionfo rg flob a
flandreg fiona
flfinvestors
.
onServ
fi
ces(AFAS) Itse rvesa sav afluabflepflatformtop romo te
gre aterfintra -
reg fionafl
finve stmen tand

T
6thP
hePh
h a
ac k
fi
scon
a
fl
fipp

geo
c
fine

ffin
s,a

an
flongw
fludednego
cfi
a
tfi
flse
a
r
fi
t
thASEAN
fion
vfi
ce
sonthe
scomm
,

fi
tmen t
s
co

po
fl
fl
oppo
abo

fin
r
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r
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atfion
fi
t
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rfin
,toenh
s
an
finthereg
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an

r k
ceaw

etp fl
a
a

ye
rene
fionandtoa
r
s
s
c
fino
so
ta
f
safo
rderto
c
afl

unde rtheASEANF ramewo rkAg reemen t expfloremu tu afloppo rtun fi

t
fiesfo rc ro ss
-bo rder
onse r vfices.Unde rtheAFAS ,ASEAN busfinessande xp ansfion
.
Membe rS t ate sh aveag reedto fl
fibe r a
fl
fi
ze
tr ade finse r vfi
ce s(fincfludfingfin an cfi
afl Thee ven tw a shefldfin M a katfiCfi
tyflast
se rvfice s)b ysub s
t antfiafl
flye fl
fimfin a
tfingm arke
t 20 M a y2014 .Itp rovfidedanoppo rtun fi
t y
ac ce ssre strfictfion sandn atfion aflt
re atmen t tojo fint
flyandopen fl
yd fi
scu ssv arfiou s
fl
fim fi
t atfions finthe firre spe ctfive ju r
fisdfic
tfions
. oppo rtun fi
tfiesand fi
ssue sa f
fe ct
fingthe
The fimp flemen tatfiono fthep ro to co flto econom fiesfinthereg fion,andthev a r
fiou sp ro-
fimp flemen tthe6 thp ac kage fisas teptow ards fin
ve s tmen t fin
fi
tfi
atfi
ve sth a th avebeenadop ted
gre ate rfin an c
fia
flfinteg ratfion finASEANand bye achASEAN Membe rS tate.Itw asco -
tofu r the rw fiden fintr a-ASEANm a rk eta ccess org anfi
zedb yDOFand4 finvestmen tb an k
s:
finthefin an c
fiaflse ctor finfl
finew fi
ththeASEAN C
fit
fiban k,Hong kongandSh angh afiB an kfing
Econom ficCommun fi
t yp fi
fl
flarons fingflem arke
t Corpo ratfion (HSBC )
, Mo rg anS tan fle
yand
andp rodu ctfionb ase. Stand ardCh arteredB ank.

10thASEANF finance The M fin

fi
s terssh aredde veflopmen tsfin
the fi
rre spe c
tfi
vee conom fie
sa swe fl
fla sthefi
r
M
fin
fi
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