Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan on Thursday affirmed the Philippines’ readiness to embark on a significant economic transformation, propelled by ambitious reforms and targeted investments in innovation, infrastructure, and human capital. This core message anchored his keynote address at the 2025 BusinessWorld Economic Forum.
“To broaden our economy, we need to attract more investments, generate higher-quality and better-paying jobs, particularly in manufacturing and higher-value-added services, and expand into new markets,” Secretary Balisacan stated. He further emphasized the critical role of “raising the productivity of our economic sectors through the adoption of modern, value-creating innovative technologies and future-proofing the economy through transformative and forward-looking policy reforms.”
Speaking publicly for the first time as the head of the newly established Department of Economy, Planning, and Development (DEPDev), formerly the National Economic and Development Authority (NEDA), Secretary Balisacan reaffirmed the agency’s steadfast commitment to delivering strategic, evidence-based policies designed to fortify the Philippine economy against future challenges.
He highlighted several global megatrends reshaping the economic landscape, including heightened uncertainty, the rapid advancement of artificial intelligence (AI), escalating climate risks, and evolving demographic shifts. “These forces are interconnected, complex, and dynamic, pushing nations to adapt, innovate, and position themselves strategically,” he noted.
Despite consistent recognition from multilateral institutions like the International Monetary Fund, World Bank, Asian Development Bank, and ASEAN+3 Macroeconomic Research Office as one of Asia’s fastest-growing economies in 2025, the chief economist underscored the imperative of moving beyond conventional growth drivers. Secretary Balisacan stressed the importance of strategic economic diversification, advocating for the strengthening of regional economies as vital growth engines to ensure balanced development and mitigate the impact of localized disruptions on major economic centers.
“We must connect leading and lagging regions through strategic, well-coordinated investments in key programs and projects. We must harmonize and mutually reinforce interventions to maximize impact and promote inclusion,” Secretary Balisacan explained.
To maintain the Philippines’ robust growth trajectory, DEPDev will continue to champion reforms, programs, and projects aimed at reducing the cost of doing business, enhancing sectoral competitiveness, and bridging human capital gaps, all while fostering a culture of innovation. Secretary Balisacan also underscored the necessity of improving public spending efficiency, directing finite fiscal resources towards high-impact areas such as quality education, healthcare, food security, social protection, and critical connectivity infrastructure.
“Committing to efficient program governance—to more effective and impactful spending, given the limited fiscal space, is key to better outcomes such as productivity growth, competitiveness, and inclusion,” he asserted.
To boost economic productivity and accelerate the adoption of new technologies, Secretary Balisacan highlighted the crucial importance of integrating micro, small, and medium enterprises (MSMEs) into global value chains, strengthening collaboration among academia, industry, and government, and attracting global investments and talent, including the nation’s world-class scientists, engineers, and entrepreneurs.
Secretary Balisacan concluded, “This imperative is not simply about catching up but seizing a strategic moment. With foresight that draws from the lessons of the past and through our collective resolve, we can build a more competitive, inclusive, and future-ready Philippine economy.”
