Growth slump prompts reform calls

Title Growth Slump Spurs Reform Calls Business Groups Urge Urgent Action

In recent months, the Philippines has faced a growth slump, with gross domestic product (GDP) growth slowing to 4.4 percent in 2025, falling short of the government's target range of 5.5-6.5 percent. In response, business groups are calling for urgent reforms to stimulate economic growth and competitiveness.

The Need for Reform

Management Association of the Philippines President Donald Lim emphasized that consumption alone cannot sustain the economy and urged faster reforms, stronger investments, and higher-value industries to drive growth. He highlighted the need to strengthen the country's industrial base to ensure resilience and competitiveness.

Philippine Chamber of Commerce and Industry (PCCI) President Perry Ferrer stressed the importance of implementing corrective and preventive measures to mitigate the impact of similar disruptions in the future. He also emphasized the need for governance, transparency, and ease of doing business reforms to create a more conducive environment for economic growth.

Makati Business Club (MBC) Executive Director Rafael Apa Ongpin emphasized the need for key legislation, including the Freedom of Information bill and amendments to the bank secrecy law, to promote transparency and accountability. He also stressed the importance of implementing ease of doing business practices and intensifying digitalization initiatives at the local government level.

A Path Forward

Federation of Philippine Industries (FPI) Chairman Elizabeth Lee emphasized that strengthening the country's industrial base is crucial for securing resilience and competitiveness. She noted that infrastructure rollout, energy costs, and supply chain disruptions have weighed heavily on industrial performance.

MAP President Lim concluded that decisive action on digitalization, skills, innovation, and public-private collaboration can help the Philippines regain momentum and move back to a stronger, more inclusive growth path.

Key Takeaways

1. Consumption alone cannot sustain economic growth.
2. Faster reforms, stronger investments, and higher-value industries are necessary for driving growth.
3. Governance, transparency, and ease of doing business reforms are critical for promoting economic development.
4. Strengthening the country's industrial base is essential for securing resilience and competitiveness.
5. Digitalization initiatives and key legislation are vital for promoting ease of doing business.

Conclusion

The recent growth slump in the Philippines has underscored the need for urgent reforms to stimulate economic growth and competitiveness. Business groups have called for a comprehensive approach that includes faster reforms, stronger investments, higher-value industries, governance, transparency, and ease of doing business reforms. By implementing these measures, the Philippines can regain momentum and move back to a stronger, more inclusive growth path.

Insights

1. The country's industrial base is crucial for driving economic growth and competitiveness.
2. Digitalization initiatives are essential for promoting ease of doing business and stimulating economic growth.
3. Governance, transparency, and ease of doing business reforms are critical for ensuring accountability and promoting economic development.
4. Key legislation, such as the Freedom of Information bill and amendments to the bank secrecy law, is necessary for promoting transparency and accountability.

Keywords Growth Slump, Economic Growth, Competitiveness, Reforms, Governance, Transparency, Ease of Doing Business, Digitalization, Industrial Base, Innovation, Public-Private Collaboration.

Edward Lance Arellano Lorilla

CEO / Co-Founder

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