The Department of Finance (DOF) has introduced revised privatization guidelines aimed at accelerating the sale of non-performing government assets, generating additional non-tax revenue, and encouraging ordinary Filipinos to invest in these properties.
Finance Secretary Ralph G. Recto said the updated rules would help maximize state resources while offering investment opportunities to the public.
“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,” Recto said in a statement.
The revised guidelines, which took effect on March 11, streamline the disposal process by allowing unsolicited offers, alternative modes of disposition, and the accreditation of brokers. The new rules also mandate the creation of a digital asset registry to enhance transparency and public access to information.
DOF Undersecretary for Privatization and Partnerships Group Catherine L. Fong emphasized that maintaining non-performing assets costs the government money while failing to generate economic activity.
“These assets do not generate economic activity or government income (by way of taxes) while it actually costs the national government money to maintain them,” Fong said.
“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.”
The privatization initiative is part of the government’s strategy to support its expanding budget, which is vital for funding infrastructure projects and social services.
Under Executive Order No. 323, the Privatization Council (PrC) oversees all national privatization efforts, while the PMO handles the sale of assets owned by government financial institutions and government-owned or controlled corporations (GOCCs).
The PrC, chaired by the DOF secretary, includes representatives from the Department of Budget and Management, Department of Trade and Industry, National Economic and Development Authority, and Department of Justice.
The Bureau of the Treasury and the Presidential Commission on Good Government serve as non-voting members.
To promote fairness, the terms and conditions of each sale are subject to unanimous approval by the PrC. The council also sets the minimum base price of every asset, usually based on a third-party appraisal of its fair market value.
Fong expressed optimism that the streamlined process would encourage more participation from individuals interested in acquiring land or other government properties.
“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,” she said.
The disposition of assets is advertised in newspapers of general circulation and posted on government websites to ensure public awareness. The new guidelines also establish clear timelines for property sales, aiming to make the transaction process more efficient from appraisal to contract signing.
Privatization as a Revenue Strategy
The Philippines has long used privatization as a tool to generate funds and reduce the government’s financial burden. Past privatization efforts have included the sale of state-owned enterprises, real estate, and infrastructure projects.
With an increasing national budget and a growing demand for public services, the government is intensifying its focus on non-tax revenue sources. In 2023, privatization proceeds contributed PHP 2.5 billion to state coffers, and officials hope that the revised guidelines will further boost collections in 2025 and beyond.
Analysts say that making the process more transparent and accessible to the public could increase investor confidence and accelerate asset sales. However, they caution that safeguards must be in place to prevent undervaluation and ensure that strategic assets remain under responsible ownership.
The DOF expects the updated privatization framework to help unlock the economic potential of idle assets while reducing fiscal pressure on the national budget.
