President Ferdinand Marcos Jr. has signed an executive order replacing Memorandum Circular No. 78, a 1964 policy governing government data classification, with a new framework designed for the cloud and artificial intelligence (AI) era.
Executive Order No. 119 updates the country’s approach to classifying and storing government data, replacing a framework introduced when records were largely paper-based.
The Department of Information and Communications Technology (DICT) said the policy reflects the rise of cloud computing, AI and other digital technologies in government.
The order adopts a risk-based data residency framework instead of requiring all government data to remain in the Philippines. Storage requirements will now depend on the sensitivity of the information.
Top Secret and Secret data must remain within Philippine territory, including embassies and consulates.
Confidential data may be processed or stored overseas with approval and safeguards, while Restricted and Open Access data may be hosted on secure cloud platforms that meet cybersecurity and encryption standards.
The policy applies only to government data, not information owned by private companies.
The DICT said the framework gives cloud providers, technology firms and data center operators greater regulatory certainty. It added that aligning the policy with international standards could strengthen the country’s appeal for hyperscale cloud infrastructure and AI investments.
The order also creates the Joint Oversight Committee for Data Classification, co-chaired by the DICT and the National Security Council, which has 120 days to issue implementing guidelines. Government agencies will have three years to fully comply under a phased rollout.
Government updates data rules for cloud and AI
By Dawn Solano
