The long-term growth and development of the Philippines would depend on efforts to create a favorable investment environment that encourages economic diversification across multiple sectors, the National Economic and Development Authority (NEDA) said.

During the US-ASEAN Business Council’s (USABC) Third Quarterly Philippines Committee Call, NEDA Secretary Arsenio M. Balisacan emphasized the government's dedication to enhance the investment climate and align with advancements made by other Asian nations. 

“Bolstering the economy's other growth pillars beyond consumption and services is crucial in ensuring sustainable and inclusive development,” Balisacan said in a statement.

“Nothing short of massive investments is necessary to crowd in even more investments that generate high-quality jobs and opportunities in increasingly higher value-added sectors,” he added.

Balisacan recognized the necessity of tackling several current economic challenges, including issues in the external sector, geographical inclusivity, and a chronic lack of investment in essential infrastructure. 

In particular, he cited the insufficient infrastructure has led to a decrease in the country's competitiveness.

Despite these challenges, Balisacan pointed out various opportunities that could drive economic advancement, affirming that the Philippine economy remains one of Asia's most promising prospects.

He identified two trends likely to increase demand in the coming decades. 

First, sustained economic growth, bolstered by strong fundamentals like moderate inflation and a dynamic labor market, has led to rising incomes and improved overall welfare. 

Second, the country is experiencing a demographic “sweet spot,” with a growing working-age population outpacing the total population. 

This presents a unique opportunity to boost economic growth if the country is able to invest in the supporting infrastructure enhancing the productivity of the expanding workforce, he said.

“The Marcos Administration has achieved much by creating an enabling investment ecosystem to help us carry out the strategies contained in the Philippine Development Plan 2023-2028,” Balisacan said.

“These actions are meant to ‘roll out the red carpet’ and make it easier for the private sector to invest in various sectors of the economy and accelerate the rollout of critical supporting infrastructure,” the government’s chief economic planner added.

Balisacan underscored the crucial role of public-private partnerships (PPPs) in the overall economic gameplan, with the private sector serving as a key partner in expanding both physical and social infrastructure projects.

Ambassador Brian McFeeters (ret.), the USABC’s Senior Vice President and Regional Managing Director, noted the marked increase in interest in the Philippines coming from U.S. companies and underscored the important role of continuing dialogues with the private sector.