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Beyond GDP Growth: Rethinking Global and Asian Development – Dr. Nirmal Ganguly

by Contributor July 13, 2026

written by Contributor

THE LATEST assessments of the World Bank, the International Monetary Fund and the Asian Development Bank suggest that the defining challenge of the coming decade is not merely sustaining economic growth, but improving its quality, inclusiveness and resilience.

A More Resilient World, but a More Complex One – Every economy tells two stories.

One is captured in statistics—GDP growth, inflation, employment, trade, and public finance. It is the language of economists, investors, and policymakers.

The other is experienced by people in their daily lives.

It is reflected in whether a young graduate finds a worthwhile job, whether a small entrepreneur can expand a business, whether a farmer can withstand an erratic monsoon, and whether families feel confident that the next generation will enjoy greater opportunities than their own.

The real purpose of economic policy is to connect these two stories.

This is why the latest assessments of the World Bank, the IMF, and the ADB deserve to be read together. Individually, they provide updated forecasts for the global and regional economies.

Collectively, they offer a broader narrative: the world economy has proved more resilient than many expected, but it has also entered a period in which long-term structural challenges are becoming more important than short-term cyclical fluctuations.

The encouraging news is that the global economy has continued to expand despite an extraordinary succession of shocks. Inflation has moderated in many countries, labour markets have generally remained resilient, supply chains have adjusted more quickly than anticipated, and fears of a prolonged global recession have receded. Although growth is expected to remain below the exceptionally strong pace seen immediately after the pandemic, the world economy has demonstrated a capacity to adapt that few would have predicted only a few years ago.

Yet resilience should not be confused with stability.

The global economy is now navigating an environment shaped by profound structural change. Advances in artificial intelligence are transforming production and employment. Climate change is imposing rising costs on agriculture, infrastructure, and public finances.

Demographic transitions are altering labour markets and consumption patterns. At the same time, technological competition and the reconfiguration of global value chains are reshaping international trade and investment.

A World Still Living with Geopolitical Uncertainty

These economic transformations are unfolding against a backdrop of continuing geopolitical uncertainty. The prolonged Russia–Ukraine conflict and the unresolved tensions in West Asia continue to cast a shadow over the global economy. Beyond their grave humanitarian consequences, these conflicts have affected energy markets, shipping routes, commodity prices, investor sentiment, and supply chains. Although the global economy has thus far displayed considerable resilience, these risks remain significant and could alter the economic outlook if they intensify. They also reinforce an important lesson: economic resilience today depends not only on sound domestic policies but also on a stable and cooperative international environment.

Against this backdrop, the policy message emerging from the three flagship reports is remarkably consistent.

Governments can no longer rely solely on short-term macroeconomic management. Controlling inflation, maintaining fiscal discipline, and preserving financial stability remain essential, but they are only the starting point. The more fundamental task is to strengthen the long-term foundations of growth through higher productivity, better infrastructure, stronger institutions, technological innovation, human capital, and climate resilience.

In many respects, this marks an important evolution in development thinking.

For much of the post-war period, economic success was judged primarily by the rate of GDP growth. That focus was understandable. Faster growth generated employment, raised incomes, and lifted millions of people out of poverty, particularly across Asia.

Today, however, policymakers are asking a more demanding question.

How can growth become more productive, more inclusive, and more sustainable?

That question lies at the heart of the latest global assessments.

A Snapshot of the Emerging Outlook

Economy/Region
Broad Outlook
The Larger Message

Global Economy

Moderate but resilient growth
Stability has improved, but structural challenges remain.

Asia

Continues to lead global growth
Domestic demand, investment, and innovation remain key strengths.

ASEAN

Resilient and increasingly integrated
Diversification and regional cooperation support long-term prospects.

South Asia

Among the world’s fastest-growing regions
Growth must be matched by stronger human capital and productive employment.

China

Transitioning to higher-quality growth
Productivity, innovation, and domestic demand are becoming more important.

India

Among the fastest-growing major economies
Sustaining reforms and converting growth into quality jobs remain the next major priorities.

The table summarises broad trends rather than individual forecasts. The precise numbers will inevitably change with every update. The larger narrative, however, is becoming increasingly clear.

The center of gravity of the global economy continues to move towards Asia. But the defining question is no longer whether Asia will remain the world’s fastest-growing region. It is whether the region can convert economic dynamism into lasting improvements in productivity, employment, resilience, and human well-being.

That is the challenge to which we now turn.

If the global economy is entering a new phase, Asia remains at the centre of that transformation. The latest assessments leave little doubt that the region will continue to account for the largest share of global economic growth over the medium term. Rising domestic demand, expanding middle classes, technological progress and continued investment in infrastructure are expected to keep Asia as the principal engine of the world economy.

Yet, the nature of Asia’s growth is changing.

For much of the past four decades, the region’s remarkable success rested on export-led industrialisation, abundant labour and deeper integration into global markets. Those foundations remain important, but they are no longer sufficient. The next chapter of Asia’s development will increasingly depend on innovation, productivity, digital transformation, climate resilience, and the quality of public institutions.

Within Asia, ASEAN offers an instructive example. Often overshadowed by the size of China and India, Southeast Asia has quietly emerged as one of the world’s most resilient and dynamic regional economies. Expanding intra-regional trade, a rapidly growing digital economy, recovering tourism, and the diversification of global supply chains have strengthened the region’s prospects.

Continued investment in infrastructure, education, and technology will determine whether ASEAN can convert this momentum into sustained long-term development.

South Asia, too, enters this period with considerable strengths. It remains among the fastest-growing regions of the world, supported by favorable demographics and expanding domestic markets. But demographic advantage is not automatic. It must be supported by quality education, healthcare, skills, productive employment, and adequate infrastructure. Without these, the demographic dividend could become a missed opportunity rather than an enduring strength.

China and India, the region’s two largest economies, will continue to shape not only Asia’s future but also that of the global economy.

China’s economy is now transitioning from an era of exceptionally rapid expansion to one that places greater emphasis on productivity, technological innovation, domestic consumption, and higher-quality development. Although its growth rate has moderated, the sheer size of the Chinese economy means that it will continue to make a substantial contribution to global output and global growth for years to come.

India presents a different, but equally significant, story. It remains among the fastest-growing major economies, supported by robust domestic demand, demographic strength, digital transformation and continuing structural reforms. The challenge now is to ensure that this momentum is translated into productive employment, higher manufacturing competitiveness, stronger agricultural productivity, better human capital, and broader regional inclusion.

The comparison between China and India should therefore not be reduced to a simple race over annual growth rates. China’s significance lies primarily in the scale of its economy and its continuing influence on global production, trade, and investment. India’s importance lies in its growth momentum, demographic profile, and expanding role in the world economy. Together, they will remain central to Asia’s and the world’s economic future.

From Managing Growth to Building Development

The deeper message emerging from the latest global assessments is that the development agenda itself is evolving.

Macroeconomic stability, prudent fiscal management, and low inflation will always remain essential. But they are increasingly being viewed as the foundations upon which broader development objectives must be built, rather than as ends in themselves.

The next generation of economic reforms will need to focus on raising productivity, encouraging innovation, investing in education and healthcare, strengthening institutions, accelerating the transition to cleaner energy, and preparing societies for rapid technological change. Economies that succeed in these areas are likely to prove more resilient, more competitive, and more inclusive.

This represents an important shift in emphasis.

For decades, GDP growth served as the principal measure of economic success. It remains indispensable, providing a vital indicator of production and economic activity. But experience has also demonstrated its limitations.

An economy can grow rapidly without creating sufficient quality jobs.

National income can rise while inequality widens.

Industrial expansion can occur alongside environmental degradation.

Technological progress can leave many people behind if skills and institutions fail to keep pace.

These realities remind us that GDP is an important measure of economic performance, but it is not a complete measure of development.

Development is ultimately about people.

It is about expanding opportunities, strengthening capabilities, and improving the quality of life. It is reflected in better education, accessible healthcare, productive employment, resilient infrastructure, environmental sustainability, and institutions that inspire confidence.

Viewed through this broader lens, the message from the World Bank, the IMF, and the ADB is remarkably consistent. The challenge before governments is no longer simply to achieve faster growth. It is to ensure that growth becomes more productive, more inclusive, more sustainable, and more resilient.

That is the next frontier of economic policy.

Conclusion

Economic forecasts will continue to change as circumstances evolve. Growth projections for 2026, 2027, or 2028 will inevitably be revised. That is the nature of economic forecasting.

What is less likely to change is the broader direction of development policy.

The world is moving towards an economic framework in which resilience matters as much as expansion, productivity as much as production, and opportunity as much as output.

For Asia, this transition presents an extraordinary opportunity. The region already drives much of the world’s economic growth. Its next challenge is to ensure that this growth generates better jobs, stronger human capital, cleaner technologies, more innovative enterprises, and more inclusive societies.

If it succeeds, Asia will contribute not only to global GDP but also to a richer and more sustainable model of development.

Perhaps that is the most enduring lesson from the three flagship reports.

They are not simply forecasting the future of the global economy.

They are pointing towards the future of development itself.

The future will belong not merely to the economies that grow the fastest, but to those that develop the best.

July 13, 2026 0 comments

Opinion

Beyond the Upper-Middle-Income Milestone: Making growth work for every Filipino

by Contributor July 7, 2026

written by Contributor

THE WORLD Bank’s decision to reclassify the Philippines as an Upper-Middle-Income Country marks an important chapter in the country’s long economic journey. With Gross National Income (GNI) per capita rising to US$4,850, comfortably above the revised threshold of US$4,636, the Philippines has entered a new group of economies that are generally associated with stronger productive capacity, greater macroeconomic stability, and expanding domestic markets.

This achievement is far from accidental. It reflects years of prudent macroeconomic management, sustained economic expansion, resilient domestic demand, growing investments, and the remarkable contribution of Overseas Filipino Workers whose remittances have continued to strengthen household incomes and national purchasing power. The country’s globally competitive business process outsourcing industry, expanding financial services, tourism, and a vibrant entrepreneurial sector have also become important pillars of economic growth.

For these reasons, the new classification deserves to be welcomed. It strengthens international confidence in the Philippine economy, enhances its standing among global investors, and reinforces the country’s reputation as one of Southeast Asia’s more dynamic emerging economies.

Yet, if history teaches us anything, it is that development cannot be understood through averages alone.

A country’s income classification tells us something important about the size of its economy, but much less about the distribution of opportunities within it. Economic growth and human development, although closely related, do not always move at the same pace. It is therefore both timely and necessary to look beyond this statistical milestone and ask a more fundamental question: Has economic progress translated into broader and more equitable prosperity for the Filipino people?

The answer is inevitably more nuanced than the headline suggests.

The Philippine economy has certainly grown, but the distribution of that growth remains uneven across sectors, regions, and income groups. While metropolitan centers continue to generate much of the country’s economic dynamism, many rural communities continue to struggle with lower productivity, weaker infrastructure, and limited employment opportunities. Likewise, while some industries have expanded rapidly, others continue to face structural constraints that prevent them from becoming meaningful engines of inclusive growth.

The country’s new international status should therefore be seen not as the culmination of its development journey but as the beginning of a more demanding phase. The challenge ahead is no longer simply to achieve higher growth rates; it is to ensure that growth creates wider opportunities, narrows regional disparities, strengthens resilience, and improves the quality of life across all segments of society.

Looking beyond the numbers: Understanding the nature of growth

One of the defining features of the Philippine economy during recent years has been the growing dominance of the services sector. This transformation has undoubtedly contributed to the country’s impressive macroeconomic performance and has helped propel it into the ranks of upper-middle-income economies.

By 2025, services accounted for approximately 63.8 per cent of the country’s Gross Domestic Product, rising significantly from around 57 per cent only a few years earlier. The sector expanded by 5.9 per cent during 2025 and maintained a healthy 4.5 per cent growth during the first quarter of 2026.

Several factors explain this impressive performance. The country’s internationally competitive business process outsourcing industry has continued to expand, financial and digital services have grown rapidly, tourism has gradually recovered, and domestic consumption has remained resilient. At the same time, remittances from millions of Overseas Filipino Workers have continued to provide an important source of household income and foreign exchange, strengthening Gross National Income beyond what domestic production alone would have generated.

These developments deserve recognition. They demonstrate the adaptability and resilience of the Philippine economy in an increasingly competitive global environment.

However, every development model also raises important questions.

An economy that becomes increasingly dependent on a single broad sector inevitably faces new vulnerabilities. Services generate employment and income, but sustainable long-term development usually rests on a more balanced economic structure in which agriculture, manufacturing, and services reinforce one another rather than move in different directions.

It is precisely this structural balance that now deserves closer attention.

To be continued in Part II, where we examine why national averages can conceal persistent inequalities, how the widening gap between sectors and regions affects development, and why avoiding the middle-income trap requires a new generation of structural reforms.

Looking beyond national averages: Does higher per capita income mean greater prosperity?

The celebration surrounding the Philippines’ elevation to Upper-Middle-Income status is both understandable and well-deserved. Yet, once the initial excitement settles, a more searching question inevitably emerges. Does a higher national income necessarily mean that a majority of Filipinos are now living significantly better lives?

The answer is not straightforward.

Gross National Income (GNI) per capita is an important macroeconomic indicator, but it remains an average. Like all averages, it tells only part of the story. It measures the country’s overall economic capacity, but it does not reveal how income is distributed, who benefits most from economic expansion, or whether the fruits of growth are reaching communities that have historically remained on the margins of development.

This distinction is crucial.

A country may successfully cross an international income threshold while significant sections of its population continue to experience economic insecurity, limited employment opportunities, inadequate public services, and persistent poverty. Development, therefore, cannot be judged solely by the size of the economic pie. Equally important is how that pie is shared and whether people have meaningful opportunities to improve their lives through productive employment, quality education, accessible healthcare, and social mobility.

In this sense, the Philippines’ new status should be viewed as an invitation to look beyond national averages and examine the underlying structure of development itself.

The uneven landscape of growth

One of the most striking characteristics of the Philippine economy is that its recent expansion has not been equally broad-based across all sectors.

Services have emerged as the principal engine of growth, while agriculture has continued to lose economic weight. Manufacturing, although showing encouraging signs in certain industries, has yet to become the strong and diversified pillar that many successful Asian economies relied upon during their own transformation.

This imbalance carries important long-term implications.

Agriculture continues to provide livelihoods for millions of Filipinos, particularly in rural provinces. Yet its contribution to national output has steadily declined. Its share of Gross Domestic Product fell from about 8.9 per cent in 2022 to only 7.9 per cent in 2025, reflecting a long-term structural trend rather than a temporary fluctuation.

The sector has also become increasingly vulnerable to climate-related disruptions. Agricultural production contracted by 1.6 per cent in 2024, recovered by 3.1 per cent in 2025, and slipped once again into a 0.2 per cent contraction during the first quarter of 2026. Such fluctuations highlight not merely cyclical difficulties but deeper structural challenges associated with climate change, declining productivity, fragmented landholdings, inadequate irrigation, and insufficient investment in modern farming technologies.

For millions of rural households, these are not abstract economic statistics. They shape everyday realities—household incomes, food security, employment opportunities, and the prospects available to younger generations.

Meanwhile, the services sector continues to generate higher incomes, stronger productivity, and greater investment, particularly in large urban centers. The result is a widening divergence between regions and between different segments of the labour force.

Such disparities deserve careful attention because sustained development ultimately depends upon strengthening all productive sectors of the economy rather than allowing one sector to prosper while others gradually weaken.

Growth must become more inclusive

Economic growth creates opportunities, but it does not automatically distribute them equally.

Over the past decade, much of the Philippines’ economic dynamism has naturally concentrated in Metro Manila and a few rapidly expanding urban centers where infrastructure, investment, financial institutions, and skilled labour are already clustered. These regions have become magnets for domestic and foreign investment, creating higher incomes and stronger employment prospects.

This concentration has undoubtedly contributed to national growth.

At the same time, however, it has also widened the development gap between highly urbanized regions and many provinces that continue to struggle with weaker infrastructure, lower productivity, and fewer employment opportunities.

Income inequality, therefore, remains an important development concern.

Although various social programs have helped reduce poverty over time, the distribution of economic gains has remained uneven. Wealth creation has generally proceeded faster than wealth distribution. Consequently, improvements in national income do not necessarily imply comparable improvements in the economic security of all households.

This is particularly evident among families that are officially classified as middle-income.

Many of these households have undoubtedly experienced rising incomes, yet their financial position often remains fragile. A prolonged illness, the loss of employment, a destructive typhoon, or a sudden increase in food and energy prices can quickly erode years of economic progress. They have moved beyond poverty but have not yet acquired the resilience usually associated with a mature middle class.

This phenomenon is not unique to the Philippines. It represents one of the defining development challenges confronting many emerging economies today.

A strong middle class is not simply one that earns more. It is one that enjoys stability, security, opportunities for upward mobility, and confidence that temporary setbacks will not push families back into economic vulnerability.

The next challenge: Avoiding the middle-income trap

History shows that reaching upper-middle-income status is not the end of the development journey. In many respects, it is where the more difficult phase begins.

Many countries have successfully escaped low-income conditions only to find themselves trapped at middle-income levels for decades. Their economies continue to grow, but at a slower pace. Productivity improvements become more difficult to achieve. Investment loses momentum. Innovation remains limited. Wage costs rise faster than competitiveness, gradually weakening export performance and industrial dynamism.

Economists describe this phenomenon as the Middle-Income Trap.

The Philippines cannot afford to become complacent.

Its new international standing undoubtedly brings important advantages. Investor confidence is likely to strengthen further. Creditworthiness may continue to improve. International financial markets may perceive lower risks, making investment more attractive.

Yet success also brings new responsibilities.

As countries graduate into higher income categories, concessional development financing gradually declines. Preferential trade arrangements may become less accessible. External competition intensifies as investors increasingly expect higher productivity, stronger institutions, better infrastructure, and a more highly skilled workforce.

In other words, the standards become considerably higher.

The country’s future competitiveness will therefore depend less on relatively low labour costs and increasingly on innovation, technological capability, institutional quality, human capital, and productivity growth.

This represents perhaps the most important policy challenge confronting the Philippines over the coming decade.

The objective should no longer be simply to produce more, but to produce better—to create higher-value industries, generate better-quality employment, strengthen domestic enterprises, and ensure that the benefits of economic expansion reach every region and every segment of society.

The country’s elevation to Upper-Middle-Income status should therefore be viewed not as a destination, but as an invitation to undertake a deeper phase of structural transformation—one that places people, productivity, resilience, and sustainability at the very center of national development.

From economic achievement to human development: A roadmap for the ruture

If the Philippines is to transform its newly acquired Upper-Middle-Income status into lasting national prosperity, the next phase of its development journey must be guided by a broader vision. Economic growth remains indispensable, but growth alone is no longer sufficient. The central policy challenge is to ensure that growth becomes more productive, more employment-intensive, more regionally balanced, more environmentally sustainable, and, above all, more inclusive.

The country’s next generation of reforms should therefore focus not merely on raising national income, but on expanding opportunities for every Filipino to participate meaningfully in that progress.

Revitalising agriculture and strengthening manufacturing

A more balanced economy requires stronger foundations. While the services sector has become the principal driver of growth, agriculture and manufacturing must once again occupy a more prominent place in the country’s development strategy.

Agriculture is not simply another economic sector. It underpins food security, supports millions of rural livelihoods, supplies raw materials to industry, and contributes to social stability. Yet it continues to face persistent structural constraints arising from fragmented landholdings, inadequate irrigation, limited mechanisation, weak rural infrastructure, climate-related risks, and restricted access to finance and modern technology.

Addressing these challenges requires a comprehensive and sustained commitment. Greater investment in climate-resilient farming, modern irrigation systems, post-harvest facilities, cold storage, agricultural research, digital extension services, and farm-to-market connectivity can significantly improve productivity while raising rural incomes. Equally important is strengthening agro-processing industries so that greater value is created within the country rather than being lost along fragmented supply chains.

Manufacturing deserves similar attention.

The experience of many successful Asian economies demonstrates that manufacturing remains a powerful engine of structural transformation. It generates productive employment, encourages technological upgrading, stimulates innovation, broadens exports, and creates strong linkages with agriculture and services.

The Philippines has already developed important strengths in electronics, semiconductors, and selected export industries. Building on these capabilities through advanced manufacturing, renewable energy technologies, medical equipment, food processing, and digital industries can diversify the country’s productive base and reduce excessive dependence on any single sector.

A stronger balance among agriculture, manufacturing, and services would make economic growth both more resilient and more inclusive.

Investing in people: The Strongest foundation for sustainable development

No country can sustain rapid economic progress unless it continuously invests in its people.

Human capital remains the most valuable national asset. Roads, airports, ports, and digital infrastructure are essential, but their economic returns ultimately depend upon a healthy, educated, skilled, and innovative population.

Education, therefore, deserves renewed priority.

Beyond expanding school enrolment, greater emphasis should be placed on improving learning outcomes, strengthening science and technology education, modernising technical and vocational training, enhancing digital literacy, and fostering lifelong learning. As technological change accelerates, workers will increasingly require new skills throughout their careers rather than only during their formal years of education.

Healthcare deserves equal attention.

Improving primary healthcare, maternal and child health services, nutrition, preventive care, and universal access to quality medical services represents not only a social responsibility but also an economic investment. Healthy populations are more productive, more innovative, and better equipped to contribute to national development.

Similarly, expanding affordable housing, improving urban planning, strengthening water and sanitation systems, and enhancing social protection will contribute to healthier communities and greater economic resilience.

Development ultimately succeeds when investments in people progress alongside investments in physical infrastructure.

Reducing regional disparities

One of the Philippines’ greatest long-term opportunities lies beyond its major metropolitan centers.

For too long, economic activity has remained heavily concentrated in Metro Manila and a limited number of rapidly growing urban regions. While these centers have become powerful engines of national growth, a more balanced pattern of development would unlock enormous potential across the country’s many provinces.

Regional development should therefore become a central pillar of national economic strategy.

Continued investment in transport connectivity, ports, airports, digital infrastructure, reliable electricity, and logistics networks can significantly improve the competitiveness of less-developed regions. At the same time, decentralising selected industries, encouraging regional innovation hubs, supporting local entrepreneurship, and simplifying investment procedures can help attract private capital beyond traditional growth centers.

Balanced regional development is not merely a question of fairness. It represents an economic necessity.

When opportunities are distributed more widely, migration pressures ease, regional productivity rises, domestic markets expand, and national growth becomes more resilient.

Building climate resilience into the development model

The Philippines is among the world’s most climate-vulnerable countries. Typhoons, floods, droughts, rising sea levels, and other natural hazards continue to impose substantial economic and social costs every year.

Climate resilience can therefore no longer be viewed as a separate environmental agenda. It must become an integral component of economic planning itself.

Infrastructure investments should increasingly incorporate climate adaptation standards. Renewable energy should assume a larger role within the country’s energy mix. Sustainable urban planning, watershed protection, coastal ecosystem restoration, disaster preparedness, and responsible management of natural resources should all become essential elements of long-term development policy.

Economic growth that comes at the expense of environmental sustainability cannot be sustained indefinitely.

The most successful economies of the future will be those that achieve higher productivity while protecting the natural resources upon which future generations will depend.

The real meaning of the Upper-Middle-Income milestone

The Philippines’ elevation to Upper-Middle-Income status is unquestionably a source of national pride. It reflects decades of perseverance, difficult reforms, entrepreneurial energy, and the extraordinary resilience of the Filipino people.

Yet every milestone also marks the beginning of a new journey.

History reminds us that development is not measured simply by crossing statistical thresholds. It is measured by whether economic progress expands opportunities, reduces inequalities, strengthens institutions, protects the vulnerable, and enables citizens to live healthier, more secure, and more fulfilling lives.

The next chapter of Philippine development will therefore depend not on maintaining a particular international classification, but on sustaining the momentum for deeper structural transformation. It will require stronger institutions, higher productivity, greater investment in people, renewed confidence in agriculture and manufacturing, balanced regional development, and an unwavering commitment to environmental sustainability.

If these priorities remain firmly at the center of public policy, the country’s recent achievement will become much more than a statistical reclassification. It will become the foundation for a more inclusive, resilient, and prosperous society.

Ultimately, the true success of the Philippines will not be judged by the level of its Gross National Income alone. It will be judged by whether the benefits of growth are shared more widely, whether opportunities become more evenly distributed across regions and communities, and whether every Filipino can participate with dignity and confidence in the nation’s continuing progress.

That, in the final analysis, is the true purpose of development. It is not simply to build a larger economy, but to build a better society.

July 7, 2026 0 comments

News

DepEd activates long-term school resilience measures after 7.8 magnitude quake

by Nova Mae Francas June 28, 2026

written by Nova Mae Francas

THE DEPARTMENT of Education (DepEd) has activated emergency interventions and its long-term school resilience program following the 7.8 magnitude earthquake that struck Sarangani on June 8.

DepEd reported that the quake left damage to education infrastructure, now documented across five regions and 39 divisions.

Education Secretary Sonny Angara released a directive to prioritize schools affected by the quake under the Infrastructure for Safer and Resilient Schools Project (ISRS) with interventions ranging from repair and retrofitting to full reconstruction of school facilities.

The ISRS Program, developed with support from the World Bank and approved by the NEDA Board in 2024, uses a risk-based approach combining structural engineering evaluations and scientific hazard assessments, covering approximately 1,282 public schools nationwide, outside the National Capital Region, identified as vulnerable to earthquakes and other natural hazards.

Based on data from the Incident Management and Reporting System as of June 24, 2026, the disaster has affected 1,676 schools, 266,001 learners, and 11,557 teaching and non-teaching personnel.

The earthquake caused severe infrastructure damage, triggering prolonged class suspensions in the hardest-hit areas, including General Santos City, South Cotabato, and Sarangani.

The agency’s preliminary damage assessments show that 2,631 classrooms were totally destroyed, requiring an estimated PHP 9.21 billion for repair and replacement.

Meanwhile, another 2,945 classrooms need major structural repair at an estimated cost of P3.54 billion, while 6,917 classrooms with minor damage will require P338.9 million.

Non-structural losses include 21,761 chairs; 3,987 IT equipment units; 418 WASH facilities, and 17,604 learning materials.

According to preliminary assessments, 2,489 schools were earthquake-affected, of which 241 are already within the priority ISRS program portfolio.

Meanwhile, the remaining 2,248 affected schools outside the current ISRS are being evaluated for possible funding under the Quick Response Fund, Basic Education Facilities Fund, and other disaster recovery frameworks.

“The safety of our learners and school personnel remains our highest priority. While we provide immediate assistance through alternative learning setups and temporary spaces, we are fully committed to investing in long-term, resilient infrastructure that ensures every Filipino learner has access to a safe and secure learning environment,” Angara said.

To note, DepEd has rolled out psychosocial and instructional recovery measures in affected schools and communities to address learning loss and the psychological impact.

Psychosocial response interventions have reached 216,841 learners, 10,166 personnel, and 2,794 parents across 398 schools.

Meanwhile, the agency also implemented extended class hours, make-up classes, and the Dynamic Learning Program, alongside a temporary shift to distance learning modes in areas where in-person classes remain suspended.

For schools with totally destroyed facilities, DepEd is fast-tracking the emergency procurement of Learning Continuity Spaces, including prefabricated and modular foldable classrooms.

DepEd and the Department of Public Works and Highways have established the DepEd–DPWH Joint Special Task Force on the Assessment of School Buildings Affected by Disasters, Emergencies, and Other Hazards to conduct structural inspections, validate technical recommendations, and expedite fund releases for repairs.

The agency stressed it will advocate for climate-resilient school building designs and enhanced minimum performance standards for all new classroom construction.

June 28, 2026 0 comments

Opinion

Beyond poverty reduction: the Philippines’ next development frontier

by Contributor June 24, 2026

written by Contributor

EVERY successful developing nation eventually reaches a point where yesterday’s development priorities become inadequate for tomorrow’s ambitions. The Philippines has now arrived at that defining moment.

Over the past decade, the country has made remarkable progress in reducing poverty, expanding economic opportunities, and improving living standards.

Millions of Filipinos have experienced tangible improvements in their quality of life through sustained economic growth, overseas remittances, expanding employment, social protection programmes and public investments. These achievements deserve recognition because they demonstrate that well-designed policies, coupled with economic dynamism, can improve people’s lives.

Yet success also demands a new vision. Development cannot remain permanently defined by the objective of reducing poverty. The real measure of national progress is whether people who have escaped poverty acquire sufficient economic security that they never have to return to it.

The recently released World Bank report of June 2026 titled “Building the Filipino Middle Class: Towards Resilient Futures and Poverty Reduction” provides an excellent opportunity to rethink the country’s development priorities.

The report rightly concludes that poverty reduction, while essential, cannot be the final destination of public policy. The larger objective must be the creation of a broad, resilient and confident middle class capable of sustaining economic growth, expanding domestic demand, strengthening democratic institutions, and providing lasting social stability.

That is an important contribution. But the national conversation should not end with the report. It should begin there.

The Philippines must now ask a more ambitious question: how can it accelerate the journey from poverty reduction to middle-class transformation?

From poverty to vulnerability

Perhaps the report’s most valuable contribution is that it shifts attention from poverty to vulnerability.

Although poverty has declined significantly, millions of Filipinos continue to occupy an uncertain economic space between deprivation and genuine financial security. They have crossed the official poverty threshold but remain dangerously exposed to inflation, medical emergencies, job losses, climate-related disasters and economic downturns. Years of progress can disappear almost overnight.

This explains why many households that are no longer officially poor continue to feel economically insecure. Their greatest concern is not simply today’s income but tomorrow’s uncertainty.

That distinction fundamentally changes the development agenda.

The challenge is no longer merely to help families escape poverty. It is to ensure that they remain permanently above it. Development should therefore be judged not only by declining poverty statistics but also by the resilience of households against future shocks.

This is also where the Sustainable Development Goals acquire deeper meaning. Ending poverty is only one objective. Quality education, good health, productive employment, reduced inequalities, resilient infrastructure, climate action and effective institutions are equally important because together they create the foundations of long-term economic security.

Sustainable development is ultimately about building resilience rather than simply alleviating deprivation.

A faster path to prosperity

The World Bank projects continued progress towards a larger middle class under current policy trajectories. That assessment is realistic and encouraging. But it should not be mistaken for the country’s full potential.

Economic history repeatedly shows that transformative development can occur much faster when governments combine sound macroeconomic management with bold structural reforms. Several East and Southeast Asian economies dramatically reduced poverty and expanded their middle classes within a generation through industrialization, export competitiveness, educational excellence, infrastructure development, and capable public institutions.

The Philippines possesses many of the same advantages. It has a young and dynamic population, a large English-speaking workforce, substantial remittance inflows, growing digital capabilities, abundant natural resources and a vibrant entrepreneurial culture.

The issue, therefore, is not whether the country has the capacity to achieve faster progress. It is whether it has the collective determination to accelerate structural transformation.

The next phase of development requires moving beyond incremental improvements. It calls for a coherent national strategy that simultaneously expands productive employment, strengthens institutions, raises productivity and equips households to withstand future economic shocks.

The Philippines has already demonstrated that poverty can be reduced. The next challenge is to ensure that the gains achieved over the past decade become permanent, enabling millions of Filipinos not merely to escape poverty but to enter the security, confidence and opportunities that define a resilient middle-class society.

Building a resilient middle-class economy

If the Philippines is to reach its next development frontier sooner rather than later, incremental reforms will not suffice. The country needs a development strategy that places productive employment, rising productivity and economic resilience at the centre of public policy.

The first priority is to accelerate industrial transformation. History offers a consistent lesson: no country has built a large, secure middle class without creating a strong productive base. While services have become an important driver of the Philippine economy, manufacturing remains indispensable for generating high-quality jobs, technological advancement and export competitiveness.

Greater investments in electronics, semiconductors, renewable energy equipment, pharmaceuticals, food processing, shipbuilding and other high-value industries can substantially expand opportunities for productive employment. At the same time, special economic zones should evolve into innovation hubs linked to universities, research institutions and global value chains.

Agriculture deserves equal attention. Although its relative contribution to national output has declined, it continues to provide livelihoods for millions of Filipinos, many of whom remain among the country’s poorest. Improving irrigation, mechanization, farm consolidation, climate-resilient agriculture, cold-chain infrastructure, rural logistics and digital extension services would not only reduce rural poverty but also strengthen national food security and stimulate domestic demand. A prosperous countryside remains indispensable for genuinely inclusive growth.

Equally important is investment in human capital. The future competitiveness of the Philippine economy will depend less on the size of its labour force than on the quality of its skills. Stronger foundations in literacy and numeracy, expanded technical and vocational education, greater emphasis on science, technology, engineering and mathematics, digital competencies and preparedness for artificial intelligence will determine whether the country’s young population becomes its greatest economic asset. Preventive healthcare, nutrition and universal access to quality medical services are equally essential because healthy citizens are also more productive citizens.

Social protection should likewise evolve from being principally an instrument of poverty alleviation into a mechanism for strengthening economic resilience. Modern cash-transfer programs, unemployment assistance, agricultural insurance, disaster insurance and wider pension coverage should ensure that temporary setbacks do not become permanent poverty. The true purpose of social protection is not simply to relieve hardship but to preserve opportunity.

Good governance remains the indispensable thread connecting all these priorities. Administrative efficiency, regulatory certainty, transparency, and timely implementation of public projects are fundamental economic assets. Every peso lost through waste, delay or corruption is a peso unavailable for schools, hospitals, infrastructure, and productive investment. Governance reform is therefore not merely an institutional objective; it is central to economic transformation.

The same principle applies to regional development. The benefits of growth cannot remain concentrated in a few metropolitan centres. Better transport networks, ports, airports, power systems, logistics corridors and broadband connectivity can create multiple engines of growth across Luzon, Visayas and Mindanao, enabling prosperity to spread more evenly throughout the archipelago.

The digital economy presents another exceptional opportunity. By supporting innovation, start-ups, digital finance, e-commerce and artificial intelligence, the Philippines can generate high-value employment while improving productivity across almost every sector. Digital transformation should become an integral component of national development rather than a separate policy agenda.

Climate resilience must also be viewed through an economic lens. Investments in resilient infrastructure, renewable energy, flood control, disaster preparedness and climate-smart agriculture are investments in protecting decades of development gains. For a country highly vulnerable to natural disasters, climate adaptation is not simply environmental policy—it is sound economic policy.

Beyond the Sustainable Development Goals

The Sustainable Development Goals provide an integrated framework for this broader vision. Poverty reduction cannot be separated from quality education; education cannot be separated from healthcare; healthcare cannot be separated from productive employment; employment cannot be separated from higher productivity; and productivity cannot be separated from capable institutions and environmental sustainability.

Development is therefore not the sum of individual programs but the product of a coherent national strategy. Progress in one area reinforces progress in another. The Philippines has already demonstrated that sustained growth can reduce poverty. The next challenge is to ensure that growth simultaneously builds resilience, expands opportunity, and strengthens the middle class.

The World Bank deserves credit for encouraging policymakers to think beyond poverty statistics. Yet the Philippines now has an opportunity to move the discussion even further—from reducing poverty to creating lasting prosperity.

Concluding observation: the way forward, moving confidently towards the next frontier

Every generation faces a defining development challenge. For previous generations of Filipinos, that challenge was reducing widespread poverty. For the present generation, it is preventing millions of families from slipping back into vulnerability while expanding the ranks of a confident and resilient middle class.

The Philippines possesses all the essential ingredients for achieving that ambition: favorable demographics, entrepreneurial energy, an increasingly skilled workforce, strategic geographic location, and abundant opportunities in the digital and green economies. What remains is the resolve to pursue bold reforms with urgency, consistency and long-term vision.

History does not remember nations merely because they reduced poverty. It remembers those who transformed economic progress into lasting prosperity, broad opportunity, and enduring social confidence.

The World Bank has invited the Philippines to imagine a larger middle class. The country should now imagine something even greater—a society in which escaping poverty is no longer regarded as the culmination of development but simply the beginning of a journey towards resilience, dignity and shared prosperity.

That is the Philippines’ next development frontier. It is also an ambition well within the nation’s reach, provided it has the courage to pursue it with determination and without delay.

June 24, 2026 0 comments

News

WB pushes for stronger oversight, intensified implementation of DA-MIADP

by Contributor March 27, 2026

written by Contributor

THE DEPARTMENT of Agriculture-Mindanao Inclusive Agriculture Development Project (DA-MIADP), with the backing of the World Bank, is stepping up efforts to strengthen oversight and accelerate the implementation to ensure timely delivery, improve quality standards, and reinforce accountability in the rollout of agri-infrastructure and enterprise initiatives across Mindanao.

This was the consensus reached during the Technical Discussion and Exit Conference in Davao City, following the 2-day field visit by the World Bank’s rural infrastructure consultant, Engr. Raoul Azanza, and social development specialist Annabelle Vitti C. Valenzuela to assess progress and address implementation challenges of the subproject implementation in Barangay Gupitan in Kapalong, Davao del Norte, and Barangay Little Baguio in Malita, Davao Occidental.

“We remain open to recommendations and encourage honest dialogue with our partners from the World Bank and from the LGUs. We recognize differing perspectives, but ultimately, we strengthen our shared goal of completing all subprojects,” said deputy project director Noel T. Provido on behalf of project director Macario Gonzaga.

Provido further underscored the commitment of MIADP to uphold quality standards, particularly those outlined in the Institutional Strengthening Action Plan (ISAP), in line with World Bank guidelines.

Engr. Mary Ann Christy S. Cotejo of RPCO XI highlighted key challenges and recommendations from ongoing subprojects. These included developments in barangays Little Baguio and Gupitan farm-to-market roads (FMRs), and the dialogues with the Datu Danwata Women’s Association (DDWA) for their coffee enterprise subproject, reflecting both operational hurdles and opportunities for improvement in the field.

Engr. Azanza emphasized that the catch-up plans for the delays will be implemented, and variations should be properly documented, reviewed, and approved by either PSO or RPCO. Valenzuela added that the affected schools and households must be provided with immediate resolutions.

For his part, MIADP-RPCO XI deputy project director Zabdiel Zacarias urged project teams to remain steadfast in delivering quality outcomes.

“Let this be a guide for both the PSO and RPCOs in implementing subprojects on our supported ancestral domains. These are times that test our grit, but we must challenge ourselves to perform better, uphold what is right, and support one another as a team. Constructive feedback, even when difficult, is meant to strengthen us. There are higher peaks to conquer as we work together to improve the quality of life of our Indigenous Peoples,” he said. (PR/DA-MIADP)

March 27, 2026 0 comments

Business

World Bank: Urbanization, connectivity critical in poverty reduction

by Nova Mae Francas February 27, 2026

written by Nova Mae Francas

IN THE latest Philippines Economic Update (PEU) for December 2025, the World Bank underscored that urbanization and connectivity are crucial in poverty reduction.

The report, titled “Closing the Gaps: The Role of Urbanization and Local Service Delivery for Integrated Development in the Philippines,” identifies urbanization and enhanced connectivity as the primary drivers.

During the PEU Development Dialogues on Feb. 26 in Davao City, World Bank economist Irene Azardon emphasized that the country achieved “robust” economic convergence in terms of Gross Domestic Product and household income.

“The poorer part of the country is growing more than the richer part, so in a way we are converging in terms of level, we are eventually having that lesser gap in terms of income levels,” she said.

Azardon said that while there is a convergence, significant disparities remain across the regions.

In the report, the GDP per capita of the National Capital Region was double those of the middle income region and much higher compared to the low income region.

The low-income regions in Mindanao include BARMM, SOCCSKSARGEN, Zamboanga Peninsula, and Caraga; while Davao Region is part of the middle-income regions.

In terms of poverty rate, Azardon said as of the latest data in 2023, the poverty rate in provinces and highly urbanized cities ranges from 0% up to 55%.

Concentrations of high poverty are most visible in parts of Visayas and Mindanao, contrasting sharply with the low poverty rates in and around the NCR.

Arzadon stressed that while there is a disparity in poverty rates across regions, urbanization, coupled with connectivity, has led to higher productivity and lower poverty.

She added that in rural areas that have more connections to these urbanized areas, they tend to have more poverty reduction.

In the report, she noted there are more wage jobs in urban areas compared to rural areas, as urban areas are higher in job quality, presence of social protection, and security.

Arzadon also emphasized taking advantage of the economic potential of every city or at the municipal level for long-term growth.

The World Bank’s analysis showed that high-potential urban clusters are scattered across regions defined by three location-specific advantages: Natural Endowments for arable land and tourism attractions; Infrastructure and Service Access (roads, internet speed, and healthcare reach); and agglomeration advantages (industry diversity and a pool of skilled workers).

For Mindanao, the “high-potential” urban clusters as defined by location-specific advantages, include: Northern Mindanao Cluster (Cagayan de Oro City, Butuan, and Ozami; z)Central Mindanao Cluster centered around Malaybalay; Southern Mindanao Cluster (major growth area encompassing Davao, General Santos City, and Cotabato) and Western Mindanao Cluster: (Zamboanga Peninsula, including Zamboanga and Dipolog City).

“When we consider these urban centers, they tend to spill over outside other LGUs,” Arzadon said, citing, for example, Davao City’s progress is also linked to other LGUs that are nearby Davao City.

“Enhanced connectivity can provide potential through transport links, not just land transportation, but water transportation. It is a good way to boost integration and create jobs,” she added.

February 27, 2026 0 comments

Business

Financial analyst POV: 2026, the ‘quiet comeback’ year

by Contributor February 8, 2026

written by Contributor

AFTER a bruising 2025, many executives are entering 2026 with a familiar mix of caution and hope. Last year tested leadership teams on multiple fronts: domestic disruptions, corruption-related confidence concerns, weaker investment momentum, and renewed external pressure from global trade frictions, including the lingering threat of US tariffs. For many companies, strategy meetings became less about expansion and more about survival: particularly protecting margins, defending cash, and keeping operations stable amid volatility.

But here is the thing: 2026 does not look like a blockbuster year. It looks like something more realistic and more useful for disciplined operators. From a financial analyst’s lens, this is shaping up to be a “quiet comeback” year: steady growth, manageable inflation, and policy conditions that can support business. That is, if you translate macroeconomic signals into decisive execution.

A recovery, not a victory lap

Multilateral institutions are converging on a modest rebound. GDP growth forecasts cluster around the 5% to 6% range, anchored by resilient domestic consumption, easing inflation versus prior highs, and a more supportive monetary policy environment. The IMF sees a sub-6% growth through 2027. The World Bank expects above 5% until 2027, emphasising that household consumption remains a core stabiliser even as fiscal policy tightens. The BSP has also indicated growth potential within the 5% to 6% band, and the government has adjusted its own target to the same range, implicitly acknowledging that 2025’s turbulence still leaves aftershocks.

What does this mean for business? It means 2026 will likely be “steady but uneven”. Companies tied to domestic demand may see more consistent tailwinds, while export-linked and capex-heavy sectors remain more sensitive to external shocks, sentiment, and financing conditions. In practical terms, the market is not rewarding bravado; it is rewarding execution discipline.

Inflation is supportive until it is not

Inflation dynamics matter because they shape borrowing costs, wage pressure, and consumer confidence. After unusually low prints in 2025 (averaged around 1.7% to 1.8%), inflation is expected to edge up modestly in 2026 to roughly around 2.3% to 3.2%, influenced by base effects and commodity pressures, while staying within the BSP’s 2% to 4% target range. That is generally constructive: inflation low enough to preserve purchasing power but not so low that it signals weak demand.

Still, inflation risk is rarely theoretical. Food prices can swing, energy markets can surprise, and weather disruptions are a recurring reality in a typhoon-prone country. The takeaway is simple: do not just “monitor inflation”. Build triggers and playbooks around it. If your margin is exposed to fuel, logistics, or imported inputs, you need predefined actions, not debates, when indicators move.

The external risk remains the X-factor

Even if the domestic base is improving, global uncertainties continue to cast a shadow. Prolonged trade barriers and tariff-related uncertainty can weigh on exports and business confidence, and fiscal tightening limits the government’s ability to cushion shocks. This is why 2026 strategies cannot be decks full of aspirations. It has to be operationalised: measurable, owned, and executable.

In other words, 2026 will reward the companies that run like an analyst would run a portfolio: protect downside, preserve liquidity, and fund options that can scale when conditions improve.

The 2026 financial analyst playbook: five moves that change outcomes

Run structured, short, and serious quarterly risk reviews

Hold a quarterly two-hour “risk committee” using a simple dashboard. Track five indicators: CPI releases (PSA), PHP/USD movements, BSP policy decisions, key tariff/trade announcements relevant to your sector, and governance/corruption-related news that may affect sentiment or permits. Score each risk 1 to 5, assign an owner, and define triggers. For example, if inflation hits 3.2%, execute a pricing protocol within seven days (price resets, bundle changes, contract repricing, promo redesign, etc.).

Diversify supply chains where it matters most.

Review your top 3 to 5 imported inputs by cost and operational criticality. Establish a strategic foothold with regional backup suppliers to cover a substantial segment (e.g., 20% to 30%) of mid-year requirements. For critical local items, consider shorter 3-to-6-month contracts to reset terms as conditions shift. Run one annual typhoon disruption drill to estimate lead times, rerouting, emergency procurement, and decision rights.

Build liquidity like a defensive asset, not an afterthought

Target cash plus committed credit covering 4 to 6 months of core operating expenses. Secure revolving credit lines while conditions are favourable, and do not wait until the bank sees stress. Implement a weekly 13-week rolling cash forecast; the discipline matters more than the software. SMEs can explore SB Corp guarantees to improve access and pricing.

Upskill for productivity gains that show up in margins.

Allocate a certain percentage of payroll for training linked to measurable KPIs. Prioritise AI-enabled operations, data analytics, and energy management basics. Aim to certify a growing segment of the workforce by year-end via TESDA-supported programs or scalable platforms. Track impact through pre/post measures: cycle time, error rates, conversion rates, and turnaround time.

Upgrade budgeting into rolling forecasts with flexibility.

Move from annual “set-and-forget” budgets to rolling quarterly forecasts with ~10% reallocation flexibility. Hold 30-minute monthly pulse checks: what changed, what it means, and what actions follow this month. In uncertain environments, speed beats perfect models.

Execution is the advantage

The road through 2026 may still feel uneven, but it is far from unworkable. The Philippines retains strong underlying demand, a young and adaptable workforce, and meaningful upside in renewables and digital services. The companies that are expected to break out this year will not be the ones with the boldest narratives; they will be the ones with clear triggers, named owners, protected liquidity, and fast decisions.

Resilience in 2026 is not a slogan. It is a system. Build it now, and you will not just survive volatility. You’ll turn it into your edge.

Seb Serrano is a Director for the Advisory Services Practice Area at P&A Grant Thornton. One of the leading audit, tax, advisory, and outsourcing firms in the Philippines, P&A Grant Thornton is composed of 29 Partners and 1,500 staff members. We’d like to hear from you! Connect with us on LinkedIn and like us on Facebook: P&A Grant Thornton and email your comments to business.development@ph.gt.com. For more information, visit our website: www.grantthornton.com.ph.

February 8, 2026 0 comments

Business

Payoneer strengthens Filipino SME competitiveness against rising global fees

by Contributor October 22, 2025

written by Contributor

THE AVERAGE cost of sending money overseas climbed to 6.49% in Q1 2025, up from 6.26% in the previous quarter, according to the World Bank’s Remittance Prices Worldwide (RPW) 2025 Report. This figure is more than double the target set under the UN’s Sustainable Development Goals, which translates into substantial losses for Small and Medium Enterprises (SMEs) engaged in global trade.

This challenge is critical in the Philippines, where SMEs employ 63 percent of the workforce, according to The World Bank. Without intervention, rising costs could stall SME growth in the Philippines, limiting their potential to drive economic dynamism and resilience. This highlights the need for faster, more transparent, and affordable solutions—a gap that Payoneer bridges.

“More and more SMEs across are choosing Payoneer as their trusted partner,” said Nagesh Devata, Payoneer SVP for APAC. “We delivered 16% year-on-year revenue growth in Q2 2025, with SMEs driving much of this momentum, ultimately reinforcing our role as the partner for cross-border growth.”

Breaking down the financial barriers to global trade

Bangko Sentral ng Pilipinas (BSP) acknowledges challenges in cross-border payments, including high fees, lack of transparency, and slow processing times. For SMEs, these challenges can erode profits, disrupt cash flows, and negatively impact their reputation and credibility, making it difficult for them to compete globally.

Payoneer addresses these challenges by offering a financial stack that is tailor-made to help SMEs manage their financial operations and ultimately simplify international transactions. Its multi-currency receiving accounts allow Filipino businesses to receive payments globally as if they were a local entity in that country, bypassing expensive wire transfers. This makes receiving payments faster and easier, leveling the playing field for SMEs.

Expanding market reach and enhancing operational efficiency

“Companies built for global work from the start are positioned to stay ahead,” said Devata. “They’re more aware of how expanding beyond their borders can benefit them, creating avenues to access new markets and customers, acquire skills and technologies, hire and retain talent, and achieve greater economies of scale,” he adds.

Devata also points out that other challenges that SMB faces include friction from hiring in a foreign country and a lack of support in legal, regulatory, compliance, and tax issues when navigating these markets. To address these, Payoneer acquired Skuad in 2024 to equip SMEs with Employer of Record (EOR) capabilities across more than 160 countries—streamlining compliance, payroll, and local HR administration.

With these business-grade features and a secure platform, Payoneer empowers SMBs to reach new markets, manage global operations, and grow across borders with greater ease, reliability, and confidence.

Contribution to the broader Philippine economy

Payoneer strengthens the Philippine economy by giving SMEs a faster, more affordable way to handle international payments, helping them bypass costly, traditional methods and seize global opportunities with confidence.

“At some point, SMEs would face the challenge of scaling their companies into new markets,” said Monique Avila, Head of Customer Success for APAC. “Entrepreneurs like Sherwin Alegre of Microsource Inc. once struggled to scale globally without the right infrastructure for international transactions. By partnering with Payoneer, he gained the tools to boost efficiency, focus on innovation, and expand across Southeast Asia.”

By giving businesses access to tools and new markets, Payoneer enables a more resilient and globally competitive class of SMEs, positioning the Philippines to capitalize on the digital economy and achieve a new level of economic growth.

October 22, 2025 0 comments

Business

DPWH, WB, and LGUs unite to boost Mindanao Connectivity

by Rhoda Grace Saron October 19, 2025

written by Rhoda Grace Saron

THE DEPARTMENT of Public Works and Highways (DPWH) convened the first project steering committee meeting for the ₱37-billion Mindanao Transport Connectivity Improvement Project (MTCIP) on Oct. 10, 2025, in Cagayan de Oro City.

According to the DPWH, the project aims to improve connectivity, safety, and access in rural and agricultural areas across Northern Mindanao, the Davao Region, and Central Mindanao.

In line with President Ferdinand R. Marcos Jr.’s directive for multi-sector participation and coordination with local government units (LGUs), DPWH Secretary Vince Dizon issued Special Order No. 167, formally creating the MTCIP PSC.

The committee is tasked with overseeing strategic implementation, inter-agency coordination, and periodic review of project milestones.

According to DPWH Senior Undersecretary and PSC chairperson Emil K. Sadain, the steering committee includes representatives from national agencies—such as the Department of Finance (DOF), Department of Economy, Planning, and Development (DEPDev), Department of Budget and Management (DBM), Department of the Interior and Local Government (DILG), and the Mindanao Development Authority—as well as local chief executives from Cagayan de Oro, Bukidnon, Davao City, Davao del Norte, Davao del Sur, Davao Occidental, Sarangani, and General Santos City.

Senior transport specialist and co-task team leader John Kobina Richardson represented the World Bank.

MTCIP’s progress has been strengthened by early endorsements from provincial and city development councils in 2023 and 2024, and from regional development councils in 2024—ensuring alignment with local priorities and enabling smoother implementation and long-term sustainability.

“The MTCIP is not just a DPWH or World Bank project—it is a Mindanaoan project. The overwhelming support from LGUs ensures the project will be felt where it matters most: in communities,” said Sadain.

Co-financed by the World Bank (₱25.46 billion) and the Philippine government (₱11.54 billion), the MTCIP will enhance transport connectivity across Mindanao by upgrading the 422-kilometer Cagayan de Oro–Davao–General Santos corridor and rehabilitating three (3) key agricultural link roads totaling 128 kilometers: Sayre Highway (Patulungan)–Cawayan–Kibenton Road (25.03 km), Fatima–Malabog–Saloy–Panabo City Road (59.40 km), and Poblacion–Malungon–Sta. Maria Road (44.03 km).

Construction is set to begin in 2027 following a 22-month design phase starting in January 2026. A five-year maintenance program will follow project completion.

MTCIP has included among its many components the Integrity Management Plan for the project, which ensures strengthening road sector management through capacity building, climate resilience, and digital mapping in Mindanao.

It also aids project implementation via technical assistance, stakeholder engagement, and audits, with a contingency component for emergency response.

October 19, 2025 0 comments