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Economic conditions

Philippines Risks Losing Competitiveness Amid Human Resource and Productivity Concerns

Strategic Insights

— 1 min read

The Philippines will eventually lose its appeal to foreign direct investors if it fails to address its challenges in providing a skilled workforce and improving productivity, former Finance Secretary Roberto de Ocampo warned. De Ocampo emphasized the importance of recognizing the country's declining competitiveness and taking proactive steps to retool and reshape its labor force. The country's productivity levels have stagnated since 1988, ranking fifth from the bottom in a 2005 world competitiveness survey of 60 countries. Moreover, the labor force is losing its advantage in English language proficiency to workers from countries like India, China, and Japan.

Key Takeaways:

  • The Philippines' competitiveness will decline if it fails to address human resource and productivity concerns, according to former Finance Secretary Roberto de Ocampo.
  • The country's productivity levels have remained stagnant since 1988, ranking fifth from the bottom in a 2005 world competitiveness survey.
  • The labor force is losing its advantage in English language proficiency to workers from countries like India, China, and Japan.
  • The country allocated only 3% of its Gross National Product (GNP) to education in 2004, which is below the ideal 6% recommended by the United Nations.
  • Despite ranking 49th in competitiveness in 2004, up from 52nd in 2003, the country's position may deteriorate due to ongoing political turmoil.

Statistics:

  • Productivity levels have stagnated since 1988, ranking the Philippines fifth from the bottom in a 2005 world competitiveness survey of 60 countries.
  • The country's labor force is losing its advantage in English language proficiency to workers from countries like India, China, and Japan.
  • The Philippines allocated only 3% of its GNP to education in 2004, below the ideal 6% recommended by the United Nations.
  • The average ranking in the 2005 world competitiveness survey is not provided in the text.

Sources:

  • "De Ocampo warns PH may lose competitiveness" by PNA, August 9, 2005.

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