By Robert Dan Roces, Economist, SM Investments Corporation
The Philippines stands at a crucial juncture in its economic journey, with the projected growth target of 6.1% for 2025. However, as we pursue these ambitious goals, we must ensure that the benefits of growth are not confined to a select few but shared widely. As discussed during the recent economic forum organized by The Manila Times, achieving inclusive growth—alongside climate resilience and digital transformation—is key to unlocking the full potential of our economy.
One of the key takeaways from the forum was the need for economic progress that benefits everyone. The Philippines’ growth cannot be measured solely by the Gross Domestic Product (GDP). I firmly believe that “an economy that works only for some will ultimately work for none.” To truly achieve our 2025 growth targets, we need to prioritize inclusive growth, ensuring that all Filipinos, regardless of income or background, can access the opportunities created by our expanding economy.
A core aspect of inclusive growth involves fostering job creation, expanding access to financial services, and ensuring that education systems are preparing students for the future economy. I echo the sentiment of Mr. Gonzalo Varela, World Bank’s Country Lead Economist for the Philippines. He said that over the past 15 years, the Philippines has created 11.7 million jobs, many of which are in wage employment, a step toward greater inclusion. But we must continue to build on these efforts to ensure that growth reaches every sector of society.
Sustainability and Climate Resilience
The panel also highlighted the importance of sustainability and climate resilience in the development of our economy. As Department of Finance Assistant Secretary Neil Adrian Cabiles emphasized, the integration of renewable energy into our national infrastructure is critical for long-term economic stability and sustainability. At SM Investments, the parent company of the SM group, we are committed to these goals with significant investments in renewable energy and disaster-resilient infrastructure.
For example, SM Prime Holdings, the group’s property arm, has installed solar photovoltaic systems in 47 of its malls and properties, contributing to a more sustainable energy future for the country. Additionally, SM’s work in disaster resilience—such as the installation of rainwater catchment basins in SM malls—helps protect communities from flooding and ensures that our development projects align with the country’s environmental goals.
Embracing Digital Transformation
Finally, the need for digital transformation is paramount. As we transition into the digital age, businesses must embrace new technologies to empower their workforce, improve government services, and enhance access to education. At SM, we are addressing this challenge head-on through Digital Learning Hubs in partnership with Mastercard, which offer public schools’ access to computers and educational tools.
Through Asia Pacific College, SM offers courses in multimedia arts and digital marketing to equip students with the skills needed for tomorrow’s digital economy.
For businesses like BDO, its Phygital Strategy bridges the gap between digital and physical banking services ensures that even the unbanked and underserved communities can access financial services, creating opportunities for financial inclusion and prosperity.
Collaboration for Sustainable Growth
The Philippines’ economic future depends on our collective ability to collaborate across sectors—government, private businesses, and civil society. To achieve our targets and ensure that growth benefits all Filipinos, we must focus on inclusive growth, sustainability, and digital innovation.
Inclusive growth is an economic necessity. By investing in people, sustainability, and digital innovation, we can build an economy that is resilient, equitable, and capable of sustained expansion beyond 2025.