The National Economic and Development Authority (NEDA) has underscored the critical importance of policies that promote human capital development, technological adaptation, innovation, and the creation of high-quality employment opportunities as pivotal for sustained, long-term economic growth and for preparing the Philippines for the future.
During the 2025 Annual Scientific Conference and the 92nd General Membership Assembly of the National Research Council of the Philippines (NRCP) on March 13, NEDA Secretary Arsenio M. Balisacan stressed the necessity for strategic initiatives to cultivate a dynamic economy and ensure shared prosperity.
In his presentation, Balisacan showed a business-as-usual scenario and highlighted both the opportunities and challenges posed by artificial intelligence (AI) and automation. He emphasized that proactive policies are essential to aid workers in adapting to the evolving demands of the job market.
“Absent policy changes, the Philippines may encounter heightened distress, increased disasters, slow progress, and expanding inequality. AI and robotics pose significant risks, with the potential displacement of low-skilled workers due to increased automation across various industries. The nation’s capacity to learn, adapt, and scale up emerging technologies is critical for establishing a sustainable future,” Balisacan stated.
He advocated for education and skills development as key drivers for the country’s long-term economic growth, underscoring the importance of private sector collaboration to align human capital with labor market demands and address persistent challenges such as low learning outcomes and skill mismatches.
Secretary Balisacan identified two primary opportunities that offer the Philippines a strategic advantage in its developmental trajectory.
First, the nation’s growing working-age population presents an opportunity for economic dividends, provided that investments in education, skills development, and innovation are made to enhance productivity and create superior employment opportunities.
Second, the extensive migrant networks of the Philippines can be leveraged as strategic assets for workforce development and broader economic advancement. The government aims to harness this expertise to drive national development through enhanced collaboration and reintegration of skilled overseas Filipinos.
However, Secretary Balisacan noted that investments in human capital must be supported by initiatives that foster an investment-friendly climate conducive to generating high-quality employment.
“We have further liberalized the economy for 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 stimulate more and higher-quality job creation, technology adoption, and research and innovation,” he remarked.
“Our envisioned future is perhaps best encapsulated by the AmBisyon Natin 2040, our collective vision for the nation, and the three-decade foresight articulated in the Pagtanaw 2050. Science, technology, and innovation will be crucial to realizing this vision,” Secretary Balisacan concluded.
