19M illiterate Filipinos should jolt authorities to prioritize education

A report showing that about 19 million Filipino high school and senior high school graduates are illiterate should be considered as a “national emergency” and prompt authorities to prioritize education reforms, a congressman said.

Around 18.9 million Filipinos who completed secondary education from 2019 to 2024 may be considered illiterate, as they struggle to read and comprehend a simple story, according to a Philippine Statistics Authority (PSA) report discussed in a Senate hearing on Wednesday.

“This is not just a crisis — it’s a national emergency,” Party-list Rep. France L. Castro said in a statement. “When one out of five senior high school graduates cannot comprehend a simple story despite years of schooling, we are looking at a systemic failure that threatens our country’s future.”

A 2022 World Bank report showed that nine of 10 Filipinos are unable to read and understand age-appropriate text at age 10.

“It’s alarming that despite the K-12 program, millions of young Filipinos still struggle to understand what they read,” Ms. Castro said.

A new curriculum, introduced in August 2023, sought to streamline learners’ education by focusing on reading, literacy, and numeracy in the first three schooling years of a student.

In 2024, Education Secretary Juan Edgardo M. Angara said the curriculum, launched by Vice-President Sara Duterte-Carpio during her stint as education chief, will continue to be revised based on the experience of teachers and students.

The Philippine government’s failure to ensure a sufficient budget to the education sector have left schools underfunded and teachers with inadequate salaries, Antonio L. Tinio, a party-list nominee in the midterm elections, said in the same statement.

“The government has consistently failed to meet the UN-recommended education budget allocation of 6% of GDP,” he said in Filipino. “The truth is simple: if investment in education is lacking, teachers and education support personnel receive inadequate salaries, and in turn, students learn less.”

The Philippines only allocated 3.6% of its GDP to education in 2022 according to World Bank data, below the 4-6% benchmark set by the Incheon Declaration.

“We need to double our current education budget to address classroom shortages, hire more qualified teachers, increase the salaries of teachers and education support personnel, provide quality learning materials, and implement effective literacy interventions,” said Ms. Castro.

In 2025, the combined budget of the Department of Education, Commission on Higher Education, Technical Education and Skills Development Authority, and state universities and colleges stood at P913.3 billion.

Meanwhile, an education advocacy group on Thursday said that political candidates for this year’s midterm election should prioritize education in their policy agenda.

“It is time to rise above politics and champion education. We urge the candidates to present concrete plans and real solutions that tackle the learning crisis, workforce readiness, and systemic reforms,” Philippine Business for Education Executive Director Hanibal Camua said in a separate statement.

“Education agencies cannot fix this crisis alone — and without bold, sustained support from elected leaders at every level of government, our most critical goals will remain out of reach,” he added.

Source: Business World

SEC: Sustainability a long-term strategy

An official of the Securities and Exchange Commission (SEC) has acknowledged the importance of environmental, social and governance (ESG) principles in corporate strategy.

Speaking at the 2nd Philippine Sustainability Now Forum last week, SEC Commissioner Javey Paul Francisco said that as the overseer of the Philippine corporate sector, the SEC promotes sustainability vis-à-vis the pressing needs for climate action, renewable business solutions and green workforce development.

"At the SEC, we believe that true progress toward a sustainable future is achieved not in leaps and bounds, but through cultivating consistent sustainable habits and embedding them within our organizational systems," Francisco said, noting that ESG is not just a regulatory requirement but a strategic approach to ensuring long-term competitiveness and resilience in a rapidly changing global market.

The SEC has made ESG integration a core part of its regulatory and advocacy work, as contained in the 2019 Sustainability Reporting Guidelines for Publicly Listed Companies.

It also extends these initiatives to small and medium enterprises through the SMILEES road show, an educational campaign on ESG practices tailored for smaller businesses.

The corporate regulator is likewise pushing for the development of the Philippine Sustainable Finance Taxonomy Guidelines, which aims to provide clear, credible standards for identifying and promoting sustainable investments in the country.

The forum was organized by the Italian Chamber of Commerce in the Philippines Inc.

Source: Manila Times

How today’s trade war shapes Philippine real estate

President Donald J. Trump’s proposed “Liberation Day” tariffs — an across-the-board 10% levy and a targeted 245% tariff aimed at China — are both dramatic and entirely in line with his long-standing protectionist agenda. Whether these measures are ultimately enacted, softened, or abandoned, their announcement alone has rattled global markets and highlighted the fragility of international trade. For the Philippines, the implications go beyond macroeconomics — they are beginning to register across real estate, particularly within the industrial and office segments.

THE PHILIPPINES IS LEVERAGING TRADE INSTABILITY TO POSITION ITSELF AS A SECONDARY MANUFACTURING HUB

Although global trade volatility has revived fears about the long-term future of globalization, the Philippines is actively attempting to turn crisis into opportunity. The Philippine Economic Zone Authority (PEZA) has championed the country as a “China+1+1” destination — a fallback manufacturing location for companies moving beyond China and its first-wave alternatives like Vietnam and Taiwan. This positioning is already bearing fruit. In 2024, 95% of total foreign direct investment (FDI) in the Philippines went to manufacturing, and from 2021 to 2024, the sector posted a 38.63% compound annual growth rate.

STRUCTURAL CHALLENGES CONTINUE TO WEIGH DOWN THE PHILIPPINES’ MANUFACTURING INVESTMENT POTENTIAL

Yet this momentum comes with persistent obstacles. High electricity costs, regulatory friction, and unpredictable policymaking continue to hinder the country’s ability to fully convert investor interest into sustained industrial activity. According to the Department of Energy, the Philippines has the third highest industrial electricity rate in ASEAN — behind only Cambodia and Singapore. In 2024, the country ranked 49th out of 67 in the IMD’s global anti-red tape index and 114th out of 180 in Transparency International’s Corruption Perceptions Index, with a score of just 33. International trade agencies such as the US Department of State and Export Development Canada have also pointed to regulatory inconsistency and political uncertainty as deterrents to investment.

PHILIPPINE EXPORTS ARE 16.8% US-BOUND, HIGHLIGHTING VULNERABILITY BUT ALSO ROOM TO DIVERSIFY

Mr. Trump’s tariff rhetoric has also reignited fears among Philippine exporters. The US is the Philippines’ single largest export market, absorbing 16.8% of exports in 2024 — worth over $12 billion. While electronics dominate the basket (including integrated circuits and office machine parts), the US also buys substantial volumes of coconut oil, leather goods, and agricultural products. Should a proposed 17% tariff on Philippine goods materialize, it could create headwinds across numerous industries.

Still, the Philippines’ export portfolio is not overly concentrated. Japan (14.1%), Hong Kong (13.1%), and China (12.9%) closely follow the US, suggesting that smart policy and market development could help diversify demand and cushion shocks.

A PERSISTENT PRODUCTION SHORTFALL DRIVES THE PHILIPPINES TO IMPORT 7.2 MILLION METRIC TONS OF STEEL ANNUALLY

One of the less visible, yet highly consequential, ripple effects of the trade war is its influence on construction material costs — particularly steel. The Philippines produces just 1.5 million metric tons of crude steel annually, on average, according to the World Steel Association. Domestic output covers only a fraction of national demand, forcing the country to import around 7.2 million metric tons per year. Roughly 67% of these imports come from China, based on 2024 data from the Philippine Statistics Authority.

Meanwhile, China’s share of steel exports to the United States has fallen drastically — from 8% in 2014 to just 2.1% in 2023. With US tariffs pushing Chinese suppliers out of the American market, many of those exports may be redirected to Asia, including the Philippines. As a result, input costs for developers could soften despite global tension — especially for steel-intensive projects in industrial and infrastructure sectors.

WITH US STEEL IMPORTS FROM CHINA DOWN 75%, PHILIPPINE CONSTRUCTION MAY BENEFIT FROM REDIRECTED SUPPLY

Amid rising trade barriers, Chinese steel producers are likely to seek alternative destinations for surplus inventory. As US demand drops further under tariff pressure, the Philippines could benefit from excess supply. Given that 80% of the country’s steel consumption is used in construction, lower prices could directly reduce development costs — potentially accelerating project timelines and making new industrial zones more financially viable.

This is a key consideration in assessing industrial real estate’s medium-term outlook. Falling input costs may catalyze new warehousing, logistics, and manufacturing facility construction at a time when global investors are exploring alternative supply chain routes.

THE OUTSOURCING SECTOR IS PROJECTED TO GROW LESS THAN 7% IN 2025 AMID GEOPOLITICAL UNCERTAINTY

In the services sector, particularly in office real estate, the BPO industry faces its own set of pressures. While trade tariffs don’t directly affect services, the Philippines’ strong reliance on US clients exposes the industry to secondary risks. North America accounts for 70% of Philippine outsourcing demand. The sector also contributed $7 billion — or 9% of national GDP — and drove 19% of office demand in 2024.

IBPAP forecasts slower growth in 2025, with the sector expected to expand by less than 7%. While BPO will remain foundational to the office market, risks from reshoring (returning operations to the US) and nearshoring (relocating to nearby countries) will temper expansion. Still, the sector’s fundamentals remain intact, and strategic interventions can help maintain competitiveness.

LOWERING ELECTRICITY COSTS COULD UNLOCK BROADER INDUSTRIAL CAPACITY

One policy lever that could unlock multiple benefits is addressing energy affordability. In the short to medium term, the government could consider targeted subsidies for energy-intensive industries — especially manufacturing. In 2024, 70.9% of all energy investment pledges were committed to renewable energy. While this signals progress toward long-term sustainability, short-term competitiveness will require bridging the affordability gap.

Vietnam once implemented cross-subsidization mechanisms to keep industrial power costs competitive. Germany has proposed covering up to 80% of power costs for energy-heavy sectors like steel and chemicals. A similar intervention in the Philippines could attract more foreign manufacturers and alleviate cost pressures for domestic producers.

UPSKILLING AND POSITIONING THE PHILIPPINE WORKFORCE AS ‘AI-READY’ WILL SUSTAIN BPO SECTOR GROWTH

The BPO sector’s other challenge is technological disruption. But here, the Philippines shows promise. A 2024 Microsoft Philippines and LinkedIn study found that 86% of Filipino knowledge workers use AI at work — well above the global average of 75%. This positions the country not as a laggard, but as a potential leader in human-AI complementarity.

 By investing in AI upskilling and moving up the value chain — toward healthcare, finance, and analytics — the Philippines can future-proof its BPO sector. Rather than being displaced by AI, the workforce can evolve with it.

STRATEGIC FRICTION IS A TEST — AND AN OPENING

Trade wars are a symptom of a fractured global order, but they also expose underlying weaknesses — and hidden advantages. For the Philippines, the challenge is not only to weather the storm, but to position itself for what comes after. With the right supply-side reforms, forward-looking workforce development, and sector-specific interventions, the country can convert external turbulence into long-term opportunities.

Source: Business World