Jaime Augusto Zobel de Ayala, Ayala Corp. chairman, is encouraging businesses to pour resources in health, infrastructure, education and agriculture – areas that could exponentially jumpstart the growth of the economy.
Speaking at the Management Association of the Philippines meeting yesterday, Zobel said investing in these sectors will ensure the economy grows in an “exponential and equitable manner, while our population also grows.”
“…a great mistake that people make is to just assume that a spectacular growth number is enough. We have to remember that our country keeps growing in terms of population size. So on a per capita income per individual, we have to move ahead of the growth of our own population. These are challenges that we must take into account,” he said.
On the healthcare sector, Zobel noted the COVID-19 pandemic exposed the most vulnerable areas in the system – the need for more hospital capacity and a huge number of healthcare practitioners and allied personnel.
On infrastructure , Zobel said while it is commendable the country is investing 5 percent of its GDP into the sector, “the gap has become quite large, and that faster and larger investments are also now going to be required.”
Zobel expressed hope the passage of the Public-Private Partnership Act will continue to provide a “viable and fair way to encourage the private sector” to participate.
“This certainly will be crucial and we intend to transform the Philippines into a truly attractive place for capital. As of 2022, the Philippines attracted the smallest amount of FDI (foreign direct investments) among Asean’s six largest economies at $9.2 billion,” Zobel said.
“Although we’re still an economy that’s driven… by consumption demand, it is also investments that we have to learn to bring into the country to help us with our needs,” Zobel added.
Zobel noted the “creeping learning challenge affecting young Filipinos” in the education sector.
“The World Bank and other reputable institutions have reported that the Philippines performs below our potential in literacy, mathematics and science. This is likewise a critical factor that we need support to ensure that we have the talent base to take the country several levels higher,” he said.
Zobel said the Ayala Group under its partnership with the Yuchengco Group’s iPeople Inc. is also dedicating capital to address the needs of the sector.
“And lastly… agriculture. We know that the sector remains extremely challenging due to persistent structural issues. We’re hopeful the private sector can…participate in this space in the future. A strong agricultural sector could generate excellent economic returns, and equity for our farmers with guaranteed proper nutrition, and food security for the country,” Zobel said.
