The Philippines needs massive investments in modern infrastructure as well as in people’s education and well-being to further grow the economy, according to Jaime Augusto Zobel de Ayala, Ayala Corp. chairman.
This is despite the $53.15- billion in public- private partnership (PPP) infrastructure development in the country between 1990 and the mid of 2022.
“While we are proud that the Philippines is among the first in the region to enact a PPP framework, our Asean neighbors seemed to have performed better and were able to attract higher levels of private capital for infrastructure,” said Zobel in a speech at the SGV & Co.’s “Philippine Economic Outlook: Public and Private Partnerships as a Catalyst for Sustainable Growth” forum Monday.
Zobel said from 2018 to 2022, total PPP investments in the country amounted to $7.09 billion while Vietnam attracted three times as much at $21.25 billion. Indonesia, meanwhile, had $14.10 billion worth of PPP investments.
“We are hopeful the new PPP Act would be able to provide the solutions to some of the critical issues that hold back PPPs in the country,” he added.
Zobel said there is a need to further enhance the capability of the government in preparing excellent quality bids and project proposals.
“In addition, it is essential to also simplify the legal framework governing PPPs in the Philippines further. We note that there is the BOT Law, Joint Venture Guidelines by the NEDA and Government-owned and Controlled Corporations, as well as PPP Codes at the local level,” he said.
Zobel said Ayala sees a capabilities and capacity challenge in the healthcare system.
“Our patient to beds, doctors to patient, and nurses to patient ratios fall significantly below the standards set by the World Health Organization. These challenges were further highlighted during the pandemic, when we experienced shortages in facilities, healthcare professionals, and allied personnel. Worth noting also is that Filipinos continue to spend high amounts to take care of their health. 45 percent of healthcare spending is done out of pocket, with 60 percent to 70 percent of out-of-pocket spending devoted to medicine expenses,” he said.
Zobel said it is essential to bring Philippine healthcare to a standard that we all deserve.
Ayala’s AC Health has an extensive network of hospitals and multispecialty clinics.
On education, Zobel noted what he called is a creeping learning challenge that affects many young Filipinos.
“Many reputable institutions and measurements of students’ academic performance found that the Philippines performs below our potential in literacy, mathematics, and science — and this has been ongoing for multiple cycles of these assessments already,” Zobel said.
Ayala has partnered with the Yuchengco Group to make world-class education available and accessible through the Mapua network of schools, APEC Schools, National Teachers College, and University of Nueva Caceres.