Philippines must strengthen global ties – NEDA

February 16, 2025 | 12:00am

To navigate economic megatrends

MANILA, Philippines —  The Philippines must strengthen its economic resilience and global partnerships to adapt to global megatrends, according to the National Economic and Development Authority (NEDA).

This was emphasized by NEDA Secretary Arsenio Balisacan during a lecture at the Lee Kuan Yew School of Public Policy,  National University of Singapore.

He said megatrends including rising inequality, growing protectionism, increasing use of industrial policy to promote disruptive technologies, as well as a costly energy transition amid worsening climate change, are expected to affect development trajectories of Asia’s emerging economies, including the Philippines.

“Asia’s low- and middle-income countries face a range of megatrends that shape and constrain – or, viewed positively, enable and facilitate – their development strategies. Yet these same megatrends can also open up new avenues for growth if acted upon strategically, employing both reactive measures to meet immediate challenges and forward-looking policies to anticipate emerging opportunities,” he said.

For the Philippines, he said the country can build on its strong economic momentum by further bolstering its resilience to shocks.

To do this, he cited the importance of diversifying the economy and going beyond consumption and services by creating an enabling investment climate, expanding in regional and global markets and enacting reforms to enhance market efficiency in critical sectors.

He also cited the need for the government to enable the adoption of technologies to foster innovation to sustain productivity growth.

To leverage new technologies, the Philippines needs to invest in its human capital.

“Fortunately, the Philippines is well-positioned to leverage its dense migrant networks to support capacity building and technology infusion, especially in this age of digital connectedness,” he said.

To address emigration and encourage the return of skilled talent, he said policies would be needed such as sufficient funding for research and stronger academe-industry linkages.

Amid the unfolding trade war and climate crisis, he highlighted the importance of strengthening partnerships with like-minded nations and Southeast Asia’s middle powers on trade, investment and development cooperation.

A favorable environment for global trade and investment is important as the country aims to broaden industries that contribute to the economy, create high-quality jobs, as well as accelerate poverty reduction.

“Partnership at the regional and international levels, especially among smaller, open economies caught in the rivalry between economic giants… is more crucial now than ever,” Balisacan said.