‘Human capital, innovation key to future-proofing Philippines

MANILA, Philippines — The country should put in place stronger policies that promote human capital development, technology adaptation, innovation and creation of high-quality jobs to achieve sustained, long-term economic growth, according to the National Economic and Development Authority (NEDA).

During the 2025 Annual Scientific Conference and the 92nd General Membership Assembly of the National Research Council of the Philippines held on March 13, NEDA Secretary Arsenio Balisacan said such efforts are vital in building a dynamic economy and ensuring shared prosperity.

While artificial intelligence (AI) and automation create opportunities, he said there should be proactive policies to help workers adapt and meet evolving industry needs.

“Without policy changes, the Philippines may face increased distress, disasters, slow progress and widening inequality,” he said.

Balisacan said both AI and robotics pose significant risks as industries automate tasks and low-skilled workers are displaced.

“Our country’s ability to learn, adapt and scale up emerging technologies will depend on its ability to ride the waves of change to create a sustainable future,” he said.

To achieve long-term economic growth, he said education and skills development would be needed to enhance productivity and create better employment opportunities.

Balisacan also cited the importance of working with the private sector to align workforce skills with labor market needs and to address low learning outcomes and persistent skills mismatches.

Given the country’s growing working-age population, he said the Philippines stands to reap economic dividends if investments are made in education, skills development and innovation to enhance productivity and create better employment opportunities.

The NEDA chief also said the country’s extensive migrant networks could help further develop the workforce and the broader economy.

As investments are made in human capital, he said the government should also continue efforts to create an investment-friendly climate.

“We have opened the economy further to investment and trade, improved the ease of doing business and enhanced the transparency and predictability of the regulatory environment. With proper implementation, these initiatives aim to induce more and higher-quality job creation, technology adoption and research and innovation,” he said.