Investing in knowledge


Benjamin Franklin's words, “An investment in knowledge pays the best interest,” resonate deeply. This belief was instilled in my family, with my parents valuing education as the key to shaping our lives. My siblings, now teachers, continue this legacy, inspiring others with their knowledge and showing the transformative power of education that can shape lives and inspire others. 
The Philippines is on the brink of a demographic dividend, boasting a large, young working population with the potential to drive economic growth. The National Economic and Development Authority (NEDA) projected that by 2045, the demographic dividend would amount to P20.4 trillion. In 2023, NEDA Secretary Arsenio Balisacan cited the need for education and human capital investments to address the learning poverty accelerated by the Covid-19 pandemic. He further argued that improving the support ratio would improve the Philippine gross domestic product (GDP) by 0.4 percent to 0.7 percent per year until 2040, while improvements in labor productivity would add 0.1 percent to 0.7 percent per year over the same period. This promising scenario can be fully realized if we invest in our youth, empowering them with quality education.
In a 2022 conference, UP Population Institute Assistant Professor Michael del Mundo argued that population growth alone does not make a demographic dividend happen. Looking deeper into the number, he looked at the support ratio, analyzing the number of effective workers for every effective consumer. He concluded that only the National Capital Region, CALABARZON, and the Cordillera Administrative Region would benefit from the demographic dividend due to lower human capital investment in other regions typified by a less educated workforce with higher youth unemployment.
Economic growth must be equitable for our nation to prosper, and no person or region should be left behind. That is why I am proud to be connected with like-minded institutions such as FINEX and PHINMA. FINEX hosts an annual competition among university students studying finance-related courses, the Intercollegiate Finance Competition or ICFC. With our partner, J.P. Morgan, this is a nationwide competition that is open to all schools, with our regional round happening on October 25 in 7 sites: Baguio, Pampanga, Manila, Cebu, Cagayan de Oro, Davao, and Bacolod. The top 20 schools, including the top school in each region, will compete in the Final round in the Bangko Sentral ng Pilipinas. We aim to strengthen the level of finance education so that students will be equipped with the knowledge necessary to be more employable and to have successful careers. We are happy to note that the ICFC has become more competitive over the years with new financial education powerhouses emerging. Indeed, today's finance students are armed with more knowledge than previous generations, and we are committed to ensuring that this knowledge is accessible to all, contributing to equitable economic growth. 
As PHINMA’s Chairman and CEO, Ramon del Rosario, Jr., said about PHINMA’s focus on education, “Like a single spark that can ignite a vast flame, we believe that one institution, one leader, one educator, one student, and one idea can catalyze significant change.” There is a reason why Quality Education is one of the United Nations Sustainable Development Goals; because it can be that spark that spurs sustainable economic development for our nation. 

EJ Qua Hiansen is the Senior Vice President, CFO of PHINMA Corp., and Chair of the Junior FINEX Committee of the FINEX Research & Development Foundation. The views and opinions expressed above are those of the author and do not necessarily represent the views of FINEX.