Phl needs wage reforms to help curb brain drain

CEBU, Philippines - While Filipino workers are believed to be more competitive than workers of other Asean nations, an economics expert says the Philippines has to solve the “brain drain” of middle managers in the country.

Professor Federico M. Macaranas of Asian Institute of Management said Filipino workers around the world can definitely compete with foreign workers.

But on the other side, this idea has also raised the profound effects of “human capital flight” on the country’s competitiveness especially with the economic integration next year.

“Well, in terms of productivity, we are very productive. So, when you go to a very productive place like Singapore, Filipinos can really compete,” Macaranas said in an interview on the sidelines of the annual conference of People Management Association of the Philippines here.

The three-day forum which will end today is being attended by people managers across the country.

“Filipinos are paid higher in other countries compared here. So, the hypothesis is maybe your room for growth is not here – it’s somewhere else,” he explained.

Filipino workers are equally productive both here and abroad, but Macaranas said several of them seek more opportunities outside the country mainly because of wage factors. He specializes on economics and is part of core faculty of Washington SyCip Graduate School of Business.

Labor-exporting economy

The brain drain is turning the Philippines into a labor-exporting economy which would eventually affect the country’s growth.

Its development might slow down, considering the best and skilled workers are leaving their home country to search for greener pastures.

“They become more efficient there because of the large scale of operations. Kung mas malaki, mas may paraan para mag-improve ka. That’s the mindset we hope PMAP can bring,” the academician said.

He pointed out the Philippine government should reform the nation’s wage structure and policies to retain Filipino professionals and prevent them from leaving the country.

The emigration of workers would definitely affect the country’s competitiveness as it would lose educated and highly skilled professionals who choose to earn more income overseas.

Aside from changing the wage structure, Macaranas noted instilling a global mindset to Filipinos who would become innovative and efficient is also one measure.

“You know, the Philippines is going global; and why would you attract talents who are thinking local?” he asked.

‘Pinoys are competitive’

For PMAP President Lawyer Josephus Jimenez, Filipino professionals are more competitive than workers of other Asean neighbors, saying, however, Filipinos’ talents must be improved in areas of values formation, behavior and character building.

The PMAP cited problems – which are also the ones mentioned by the World Economic Forum – that the Philippines should address.

These include inefficient government bureaucracy, corruption, inadequate infrastructure, tax regulation and restrictive labor laws. — Carlo S. Lorenciana (FREEMAN)