Healthcare, Infrastructure, Education, Agriculture
MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, will continue to invest in sectors that would help address society’s pain points, its chairman Jaime Augusto Zobel de Ayala said yesterday.
Speaking at the Management Association of the Philippines (MAP) inaugural meeting and induction of the 2024 board of governors, Zobel said there are at least four critical sectors where businesses can help through increased investments to help close societal gaps.
“Allow me to share some sectors where we have seen persistent gaps to close, but at the same time excellent opportunities to create value. Firstly, healthcare. The pandemic exposed the most vulnerable areas in our system, while also elevating having a proactive and holistic approach to wellness,” he said.
He said this was not just about capacity but also about having a higher number of healthcare practitioners and allied personnel as well.
“The full implementation of universal healthcare will also be critical,” he added.
Another pain point is infrastructure.
“It is notable that we continue to invest over five percent of gross domestic product in infrastructure, which will be bolstered by the recently passed Public-Private Partnership Act. Nevertheless, the gap has become quite large that faster and larger investments are required. We hope that our strengthened PPP framework will continue to provide a viable and fair way to encourage the private sector to help close these gaps,” Zobel said.
Infrastructure, he noted, is crucial especially if the Philippines wants to attract more capital.
As of 2022, the Philippines attracted the least amount of FDI among ASEAN’s six largest economies, at $9.2 billion. Singapore was the highest FDI recipient at $141 billion, followed by Indonesia at $22 billion, then by Vietnam at $18 billion, Zobel noted.
Education is another area of concern, Zobel said, underscoring the recent challenges hounding the sector.
“On education, we have seen a creeping learning challenge affecting young Filipinos. The World Bank and other reputable institutions have reported that the Philippines performs below our potential in literacy, mathematics, and science. This is likewise a critical sector that would need support to ensure that we have the talent base to take the country several levels higher. We note the tremendous contributions of various groups, such as Philippine Business for Education along this front. We are likewise dedicating capital in this sector, together with the Yuchengco Group, through iPeople,” Zobel said.
“Lastly, agriculture. We note that this sector remains extremely challenged due to persistent structural issues. We are hopeful that the private sector can perhaps more meaningfully participate in this space. A strong agriculture sector can generate excellent economic returns and equity for our farmers and guarantee proper nutrition and food security,” he said.
Ayala itself will continue to make meaningful investments, taking off from its core businesses such as banking, telecommunications and energy.
“Moving forward, Ayala intends to intensify investments in several meaningful areas. On sustainability, we remain on track to achieve net zero greenhouse gas emissions across all scopes and across the group by 2050. We are taking this journey step by step: Our largest subsidiaries have completed their respective baseline studies and their roadmaps toward 2050 and will be embarking on projects to reduce and better manage emissions,” Zobel said.
He said the group’s newest investments, healthcare and electric mobility, will continue to receive significant support from the Ayala Group.
“We remain highly excited about the ability of these sectors to generate sustainable value, contribute meaningfully to enhancing the health and well-being of our population, and upgrade our transportation infrastructure,” Zobel said.