The Philippines’ long-term economic growth and development will depend significantly on initiatives to foster a favorable investment climate that supports diversification into various sectors and industries, according to the National Economic and Development Authority (NEDA).
NEDA Secretary Arsenio Balisacan, speaking during the US-ASEAN Business Council’s (USABC) Third Quarterly Philippines Committee Call, reaffirmed the government’s strong commitment to improving the investment landscape and keeping pace with the progress made by neighboring Asian economies.
“Bolstering the economy’s other growth pillars beyond consumption and services is crucial in ensuring sustainable and inclusive development. Nothing short of massive investments is necessary to crowd in even more investments that generate high-quality jobs and opportunities in increasingly higher value-added sectors,” said Balisacan.
Balisacan acknowledged the need to address challenges in the economy, including difficulties in the external sector, geographical inclusivity, and longstanding underinvestment in critical infrastructure. Inadequate infrastructure, in particular, has contributed to a decline in the economy’s competitiveness, he said.
Despite these hurdles, Balisacan highlighted several opportunities to help propel the economy forward as the Philippine economy continues to be one of Asia’s brightest stars.
He noted two trends that promise rising demand in the coming decades. First, sustained economic growth, supported by robust fundamentals such as moderate inflation and a vibrant labor sector, has raised incomes and significantly improved overall welfare over time.
Second, Balisacan said that the country has reached a demographic “sweet spot,” with the working-age population growing faster than the overall population. This presents a unique opportunity to boost economic growth if the country is able to invest in the supporting infrastructure enhancing the productivity of the expanding workforce.
“The Marcos administration has achieved much by creating an enabling investment ecosystem to help us carry out the strategies contained in the Philippine Development Plan 2023-2028. These actions are meant to ‘roll out the red carpet’ and make it easier for the private sector to invest in various sectors of the economy and accelerate the rollout of critical supporting infrastructure,” Balisacan said.
Balisacan underscored the crucial role of public-private partnerships (PPPs) in the overall economic gameplan, with the private sector serving as a key partner in expanding both physical and social infrastructure projects.
Ambassador Brian McFeeters (ret.), the USABC’s senior vice president and regional managing director, noted the marked increase in interest in the Philippines coming from US companies and underscored the important role of continuing dialogues with the private sector.
“We’re glad to have more than 40 companies joining our call and briefing today with Secretary Balisacan. This continues a trend of high energy and interest from our member companies. In fact, we had a record 30 companies that participated in our annual Philippines Business Mission in May 2024. The US-ASEAN Business Council remains committed to fostering collaboration between the public and private sectors to support sustainable growth in the Philippines,” McFeeters said.
Balisacan said the government’s economic team is championing next-generation reforms to transform and diversify production sectors. He also highlighted the administration’s progress on 186 infrastructure flagship projects under the Build-Better-More Program. Many of these projects aim to promote greater economic mobility and inclusivity.
“This will be next chapter of the Philippines’ exciting growth story: we are working hard to diversify, transform, and modernize our various sectors and industries, ensuring that the fruits of economic growth are equitably shared across the country,” he said.
