The Philippines needs to address skills challenges in crucial industries like business process outsourcing, tourism and electronics and electrical manufacturing, to sustain its growth momentum according to a study by SMU and global financial services firm J.P. Morgan. The year-long study focused on the skills challenges faced by the ASEAN economies of Singapore, Malaysia, Indonesia, Thailand, and the Philippines. SMU President Professor Arnoud De Meyer said the Philippines enjoys a strong comparative advantage in its young workforce and low-skilled industries in manufacturing and services. “But it needs to place more emphasis on education and relevant skills training, as well as encourage more private sector-led training programs, if it wants to elevate its economy to a middle-income status,” he said.

As such, the study recommends the Philippine government prioritize spending on education to raise the standards of teaching facilities and the quality of teachers and trainers. “With more resources, the Technical Education and Skills Development Authority can expand its work at the regional and provincial offices and develop competency standards not just for entry-level but also mid-level