The inception of the 2025 IMD World Competitiveness Rankings survey, as announced recently by the Management Association of the Philippines (MAP), is a timely and sobering wake-up call for the Philippines. While we have long celebrated our economic resilience, it is clear that resilience alone is no longer enough. In a world transformed by technology, innovation, and rapidly shifting global markets, we find ourselves lagging behind countries that have been quicker, bolder, and more deliberate in pursuing national competitiveness.
The 2024 rankings reveal familiar shortcomings. Despite our demographic advantages — a young, English-speaking workforce and strong entrepreneurial spirit — we continue to underperform in critical areas: infrastructure development, education quality, regulatory efficiency, and digital readiness. These are not new problems, yet year after year, progress has been slow, uneven, and often derailed by political distractions.

Our public institutions remain burdened by bureaucracy and regulatory bottlenecks that discourage investment and innovation. Infrastructure projects, while abundant in announcements, are often delayed or plagued by inefficiencies. In education, outdated curricula, skills mismatches, and underinvestment prevent us from fully preparing our people for the demands of a digital economy. Meanwhile, in technology and innovation, we lag behind regional peers who have embraced digital transformation as a national priority.

Encouragingly, initiatives such as the Anti-Red Tape Authority (ARTA) have made meaningful strides in improving the ease of doing business. Streamlining permits, automating services, and simplifying procedures have started to show positive impact. However, the success of these reforms hinges critically on local government units (LGUs), which serve as the frontline for investors and citizens alike. LGUs must embrace innovation, efficiency, and transparency to ensure that national reforms translate into real, everyday improvements across the country.

The way forward is clear — and it requires decisive, sustained action:

First, we must deepen our regulatory reforms. Beyond national directives, real change must happen at the local level, where businesses seek permits, licenses, and clearances. LGUs must be empowered and held accountable for adopting best practices in governance and service delivery.

Second, we must radically improve our infrastructure — both physical and digital. Completing major transport projects on time, expanding broadband access nationwide, and embracing smart city initiatives are crucial to enhancing productivity and connectivity.

Third, we must invest boldly in education and skills development. Modernizing curricula, strengthening linkages between academe and industry, and prioritizing STEM fields, digital literacy, and vocational training are urgent imperatives. Our young population is an asset only if adequately equipped for the future.

Fourth, we must foster a culture of innovation and entrepreneurship. This includes supporting startups, protecting intellectual property, expanding access to venture capital, and creating an environment that encourages responsible risk-taking.

Fifth, we must reinforce governance, transparency, and the rule of law. Investors and citizens alike need confidence that institutions are fair, policies are consistent, and leadership is accountable.

The IMD rankings should not be seen as an embarrassment, but as an urgent call to confront hard truths and correct our course. Competitiveness is not won through rhetoric; it is built daily through action, investment, and reform.

The global race for competitiveness is unforgiving. Those who delay or deny will be left behind. The Philippines must meet this challenge head-on — with courage, coherence, and a clear-eyed commitment to building a future that all Filipinos deserve.

The time for complacency has long passed. The time for action is now.