MANILA - The National Economic and Development Authority (NEDA) is pursuing its plan to create a regulatory sandbox framework to push for innovation in the Philippines.

At the 3rd SGV Tax Symposium in Makati, NEDA Undersecretary Rosemarie Edillon said in order to beef up the economy, there is a need to support innovative products or services that may eventually benefit the country in the long run. A regulatory sandbox allows businesses to experiment or test new and unique products under the supervision of a regulator for a limited time.

She said a regulatory sandbox is needed since some new and fresh ideas or products may not be covered by existing regulations or policies. This will also lead to create a dynamic innovation ecosystem as part of the Philippine Development Plan 2023-2028.

“We want many more of the regulatory sandboxes. There’s a new product offering, there’s new goods, new service that is being introduced out there, but the thing is probably there’s old regulation. We are willing to listen,” Edillon said.

She added that the partnership with the private sector would be crucial since government would also need data to check how the new product or service is benefiting the public in terms of safety and other aspects.

“What we want is more engagement with the private sector with respect to policy and then the formulation of regulations,” she added.

Edillon said the Bangko Sentral ng Pilipinas already has a regulatory sandbox framework especially dealing with financial technology or fintechs. She also said that the Securities and Exchange Commission also has a similar sandbox framework.

The NEDA official said there is a need to have innovative products or services in the field of food and agri business, health tec, and other sectors. Aside from the private sector, she also wished foreign groups could also come and share the best practices done in other countries on innovation and regulatory changes.

Participants at the symposium welcome the various announcements of government agencies who spoke including Edillon. They said there is a need to help the country by enticing more businesses and investors and by knowing the new trends and regulatory changes including tax policies.

“Effective tax governance is more important than ever with increasing scrutiny from regulatory bodies emphasizing the need for transparency, compliance, and strategic planning,” said Fabian Delos Santos, SGV & Co. Tax Leader.