Recent data from the IMD World Competitiveness Ranking, is a wake-up call: the Philippines ranked 51st out of 69 economies, and continues to rank 13th in Asia-Pacific and, alarmingly, 5th among the five ASEAN nations included. These standings are based on 170 hard data points and 92 from executive-opinion surveys—highlighting systemic weaknesses in our competitiveness.

Published in the World Competitiveness Yearbook (WCY) by the International Institute for Development (IMD) produced with the Asian Institute of Management (AIM) Rizalino Navarro Policy Center, the report underscored these chronic shortfalls: persistent red tape, faltering infrastructure, uneven regulatory frameworks, and a mismatch between skills and market needs. What’s more, these weaknesses didn’t emerge overnight—they were forecasted years ago.

So, what are the vital few action points that can truly move the needle?

First: Redefine governance for efficiency and predictability.

Our report card remains poor on government efficiency, with low scores in public finance, business legislation, and institutional frameworks. A reignited Ease of Doing Business reform must aggressively automate permitting, licensing, and approvals; enforce anti-corruption measures with real-time transparency; and deliver predictable tax policies, minimizing sudden regulatory shifts.

Second: Fast-track infrastructure development.

Five years of underwhelming performance in basic and technological infrastructure, ranked in the 60s, send a stark message: our logistics and digital backbones are crumbling. We must do the following: accelerate flagship projects linking seaports, airports, and road networks, especially in undervalued regions; close the digital divide by expanding high-speed internet and reliable energy; and prioritize public-private partnerships to fast-track rail connectivity, freight corridors, and smart-city infrastructure.

Third: Overhaul education and skills for a 21st century workforce.

We need to concentrate on the following: improve quality of primary and secondary schooling, and invest in teacher training, curricula overhaul, and digital classrooms; forge stronger links between universities and industry to create demand-driven talent pools; and incentivize private investment and create tech transfer hubs.

Fourth, foster an encouraging business environment.

The decline in business efficiency—spanning labor regulation, financial access, management practices, and business attitudes—must be addressed head-on. Key reforms include: simplifying labor laws to balance worker protection and flexibility; strengthening access to capital through reforms in financial inclusion and risk mitigation mechanisms; upskilling mid-career professionals in digital management and export-readiness; and stimulating entrepreneurship through scale-up grants and regulatory sandboxes, particularly in emerging industries like fintech, green energy, and digital services.

Fifth: Shift mindsets from short-term to long-term strategy.

Underlying all is a pattern: short-termism in policymaking and insufficient coordination among government, business, and society. Our improvement depends upon taking on the following vital measures: strategic coherence through multi-year roadmaps for infrastructure, education, innovation, and trade; outcome-based budgeting and tracking impact in real time; governance collaboration among government, business chambers, academe, and civil society; and transparency and feedback systems powered by digital tools and citizen engagement.

If the Philippines wants to rise from the 50s into the top 30 of global competitiveness, we must do more than tinker—we must execute. The road ahead demands a unified push: better governance, robust infrastructure, modernized education, streamlined business systems, and collective strategic vision.

Given the current administration’s limited time frame, the business sector and civil society must take up the cudgels for sustainable, long-term development.