President Ferdinand R. Marcos Jr. has signed Executive Order No. 119, updating the country’s outdated government data system and putting in place a formal data residency framework to better protect official information while drawing more investments to the digital economy. The new policy replaces Memorandum Circular No. 78, a 1964 guideline designed for paper records, with a modern system built to suit current digital tools including cloud computing and artificial intelligence.
The Department of Information and Communications Technology explained that the order fills long-standing regulatory gaps and aligns local rules with international standards, giving industry players clearer policies they have long sought to support digital infrastructure projects. Issued ahead of the Private Sector Advisory Council meeting on digital infrastructure, the measure forms part of the administration’s wider work to upgrade digital governance. It was developed following the President’s instructions on public sector data localization, and shaped by consultations with over 50 groups such as government bodies, security agencies, privacy watchdogs, foreign business chambers, cloud providers, telecom firms, and digital operators, alongside reviews of 18 formal position papers.
The framework balances national security needs with support for cloud use, cross-border digital services, and continued investment. “Data is the foundation of our digital future. We must protect critical government information while ensuring that the Philippines remains open to innovation, cloud technologies, and global digital partnerships,” said DICT Secretary Henry R. Aguda. The department noted the order will give investors more confidence while strengthening safeguards for sensitive data, helping position the Philippines as a secure, investment-friendly destination and a regional hub for digital innovation.
