Category: Business Mirror

AS moderate to heavy rainfall threatens parts of Luzon, the National Disaster Risk Reduction and Management Council on Monday said the three successive storms and the prevailing southwest monsoon have severely affected 102 cities and towns that remain under a state of calamity due to severe flooding.

The figure is a sharp increase from the 88 cities and towns under state of calamity in August 22.

The provinces of Bataan, Pampanga, Cavite, Bulacan and Zambales have declared province-wide states of calamity owing to severe flooding.

In its Thunderstorm Advisory 2, the Philippine Atmospheric, Geophysical and Astronomical Services Administration’s (Pagasa) Regional Services Division for the National Capital Region, which also covers nearby provinces, said that moderate to heavy rainshowers with lightning and strong winds are being experienced in Bataan, Tarlac, Pampanga, Rizal (Rodriguez, San Mateo, Antipolo, Cainta, Taytay, Baras, Tanay), Metro Manila (Marikina, Pasig, Quezon City), and Quezon (Lucena, Pagbilao, General Nakar, Tayabas, Panukulan, Burdeos, Polillo, Patnanungan).

The NDRRMC reported that several flooding and landslides during the onslaught of Tropical Cyclones Luis, Maymay, and Neneng, and aggravated by the monsoon rains, claimed the lives of 29 persons, with three others reported missing.

The inclement weather affected 2.2 million families, or 7.5 million persons.

Because of the severe flooding that damaged some 2,500 houses, 9,858 families or 33,358 persons remain in 418 different evacuation centers for shelter, food, and medical care.

According to the NDRRMC, damage to public and private infrastructure has reached P5.1 billion, while damage to crops has reached P1.7 billion.

Part 1 of a two-part series on PR Education

Public relations has never had more tools, platforms, or data. At the same time, the world of work demands graduates who can come in and do the job. We hear it often enough in the academe: more practical skills, more industry exposure, more familiarity with the tools being used.

Fair enough. But is that all a university produces?

If the profession is changing this rapidly, are we preparing tomorrow’s practitioners for the PR they will assume, or the PR we once knew?

I asked PR educators from eight countries how their programs are adapting, particularly in balancing practical skills and theoretical knowledge.

Marco Polo, PhD Associate Professor, Communication and Journalism Department De La Salle University-Dasmariñas, Philippines

From the Philippines, Polo sees both movement and unfinished work: ‘Philippine higher education institutions [HEIs] now offer PR as part of broader communication programs … [courses] such as campaign planning, crisis communication, and stakeholder engagement.’ He adds, ‘To address industry needs, programs are increasingly emphasizing experiential learning, such as internships, case studies, and simulation exercises, to bridge the gap between theory and practice.’

Professor Dr. Jamilah Hj Ahmad, APR, FIPR School of Communication, Universiti Sains Malaysia

In Malaysia, Ahmad brings industry into the discussion: ‘Guest lecturers, internships, and industry sabbaticals help both lecturers and students connect theoretical knowledge with practical experience.’ She also points to the role of the Institute of Public Relations Malaysia in allowing ‘PR academics to engage with industry practitioners and gain exposure to real-life applications.’

Jantima Kheokao, PhD University of the Thai Chamber of Commerce-School of Communication Arts, Bangkok, Thailand President, Asian Network of Public Opinion Research

In Thailand, Kheokao raises another development: ‘Stand-alone PR programs are declining.’ PR is now more commonly taught within marketing communication or broader communication programs ‘because employers need professionals with integrated skills rather than narrow specialization.’

Nia Sarinastiti, PhD Associate Professor, Atma Jaya Catholic University of Indonesia

Part-time lecturer, Graduate School of Communication Sciences, University of Indonesia

In Indonesia, Sarinastiti looks further ahead: ‘Public relations education today is no longer about preparing students for the first job they will hold after graduation. It is about preparing them for professions that may not yet exist, technologies that will continue to evolve, and societal challenges that require ethical leadership.’

In India, Huria describes SCoRe as founded ‘by professionals for the profession.’ Its approach is equally direct: ‘Our program is designed to ensure that every student graduates not just with knowledge, but with the confidence and competence to apply it in real-world scenarios.’

Suk Won Baek, PhD Graduate School of National Policy Chungnam National University, South Korea

From South Korea, Baek says, ‘Korean universities are placing greater emphasis on balancing theoretical foundations with practical skills.’ She cites ‘project-based learning, industry expert lectures, and collaboration with the private sector’ as ways students apply classroom learning to real-world PR challenges.

Elizabeth Soliday-Naui, PhD President, ISASS-SSM Barcelona, Spain

For Soliday-Naui, theory and practice also operate within an international classroom: ‘We place equal emphasis on cultivating strong theoretical foundations and developing essential practical skills.’ With students and faculty representing around 15 nationalities, real-world examples from different countries become part of the learning experience.’

Hui Zhang, PhD Coordinator, Sustainability ProgramAssociate Professor, Department of Communication Bridgewater State University, United States of America

In the United States, Zhang says, ‘We emphasize experiential learning as a cornerstone of our curriculum.’ Internships, Public Relations Student Society of America and an agency-style course provide students with hands-on experience in campaign planning, client relations, and strategic communication.

I understand why industry wants graduates who can hit the ground running. But I would push back on the idea that the university’s job is simply to produce work-ready graduates.

What struck me is that despite all the pressure for practical skills, these educators have not thrown theory out of the classroom.

Theory is sometimes treated as the part that is too academic for the ‘real world.’ I see it differently. A tool teaches us how to perform tasks. Theory helps us ask why we are doing it, what may happen when we do it, and whether we should be doing it at all.

Public Relations education must ‘listen’ to industry; it should not merely follow industry.

The university has to prepare students for the world of work without allowing the world of work to define their education.

Part 2 takes this question into account: technology, AI, and sustainability.

A PR Matter.

PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier organization for PR professionals around the world. Rowena Capulong Reyes, PhD is the vice president for Corporate Affairs of Far Eastern University (FEU). She is an executive committee member of the Metro Manila Film Festival 2025 and heads its education committee. She was formerly the Dean of FEU Institute of Arts and Sciences and Colegio de San Juan de Letran. She is the immediate past president of the Philippine Association of Communication Educators (PACE), serving two terms.

We are devoting a special column each month to answer our readers’ questions about public relations. Please send your questions or comments to askipraphil@gmail.com.

For more insights and updates on public relations, follow PR Matters by IPRA Philippines on Tiktok, Youtube, Instagram and Facebook.

THE Philippine Health Insurance Corp. (PhilHealth) is willing to accept another year of losses as it expands benefit packages and continues to rely on government funding to sustain the country’s universal health insurance system.

Speaking to reporters at the sidelines of a news briefing last Thursday, PhilHealth Senior Vice President for Fund Management Sector Renato Limsiaco Jr. said the insurer’s thrust is to strengthen benefits for members rather than restrain spending to break even.

This comes as PhilHealth’s net loss, wider by 21.63 percent year-on-year to P17.902 billion in the first quarter of 2026, is expected to narrow this year.

The insurer’s expenses, mostly for benefit claims, amounted to P99.893 billion in the first quarter, outpacing income at P77.047 billion.

For the full year, PhilHealth expects benefit claims to reach P378.786 billion, which will be funded by premium contributions worth P246.920 billion, along with government subsidy, interests and other income and retained earnings.

Subsidy from the national government, such as the P53 billion in shares from sin taxes and P16 billion earmarked for benefit improvements, will also support PhilHealth’s operations this year, Limsiaco said.

‘Right now, I can’t see that we’re going to break even because if you’re going to break even, you control the expenses,’ Limsiaco said. ‘But we still have retained earnings. We still have reserve funds. Why would we control the expenses? People need support.’

As of end-March, PhilHealth’s retained earnings stood at P76.244 billion and will be boosted by the P60 billion returned by the national government last April.

To recall, PhilHealth remitted P89.9 billion of its reserve funds to the Treasury in 2024 to fund the unprogrammed appropriations in the national budget.

‘If it is not enough, we still have a buffer that we can use to cover the requirements,’ Limsiaco said. ‘We can still manage it. We just need to push for the [national government] counterpart so that we can continue covering the costs.’

PhilHealth has initially requested a budget of P370 billion for 2027 to implement its expanded benefits.

However, the government only accommodated P74.448 billion under the 2027 National Expenditure Program, slashing PhilHealth’s proposal by nearly 80 percent. This is also 74.32 percent lower than this year’s allocation of P129.782 billion.

PhilHealth’s financial sustainability is becoming strained as benefit claims are rising faster than its premium collections, driven by the insurer’s tack to ramp up benefit packages and widen healthcare coverage for its members.

In 2025, PhilHealth rolled out its ‘Yaman ng Kalusugan’ program, or ‘Yakap’ (embrace), offering an expanded package of accessible health services, including primary care checkups, medicines, basic laboratory tests and screening.

Limsiaco said Yakap could contain the increase in benefit claims of hospitals, as greater access to primary care, early detection and early treatment would reduce the need for more expensive hospital-based care.

The impact, however, may take time to materialize, with PhilHealth expecting to see the results over the next three years as the program is expanded.

PhilHealth has P308.950 billion in reserve funds to date, which Limsiaco said could be used if additional resources are needed to support benefit packages.

The insurer has also accumulated P31.135 billion in interest income from reserve funds as of end-March.

‘For now, we just need to continue improving the system, improving benefit packages, making sure people can avail themselves of the benefits, [and] speeding up claims processing,’ he said.

THE central bank has rolled out the guidelines for the grant and implementation of aid for rural banks as they migrate to a modern banking system.

According to the Bangko Sentral ng Pilipinas (BSP) Memorandum M-2026-042, one of the key components under the ‘Rural Bank Strengthening Program’ (RBSP) technical assistance is to support rural lenders in the migration from ‘legacy information technology systems to cloud-based or software-as-a-service (SaaS) core banking systems (CBS).’

According to the central bank, a SaaS CBS is a ‘cloud-hosted core banking system operated by an external provider and accessed by the bank over secure electronic channels on a subscription or usage basis and is treated as outsourcing of IT systems under BSP regulations.’

The BSP said the technical assistance (TA) shall include helping rural banks acquire and subscribe to a SaaS CBS for a limited period to enable enhancements in their operational efficiency, operational resilience, business continuity, cybersecurity, and regulatory compliance capabilities.

In the long run, the TA, likewise, aims to support the ‘viability and competitiveness’ of rural banks amid the increasing digitalization in the financial system, the central bank explained further.

As such, the BSP released the guidelines, qualification requirements, documentary requirements, procedures and other governing rules for the grant and implementation of the TA.

‘The TA shall provide qualified banks with support for the implementation and multi-year subscription to a Saas CBS, subject to the BSP’s evaluation and approval in accordance with these guidelines,’ The central bank said in the memorandum.

The BSP explained that the support shall include the services necessary to implement and operationalize the CBS. The latter includes system configuration, data migration, system integration, testing, user training, commissioning, cloud infrastructure, technical support, system updates, and maintenance services.

The implementation period of the assistance shall be six months maximum, reckoned from the date of issuance by the BSP to the Service Provider of the deployment notice covering the Recipient rural bank.

The implementation period shall cover the deployment of the CBS up to successful full system ‘go-live.’

Meanwhile, the BSP said the TA shall cover the fixed subscription period of 36 months from the end of the implementation period.

‘The subscription period shall cover the continued access to and operation of the CBS and related support services upon successful system Go-Live,’ the central bank said.

A recipient rural bank refers to a rural bank whose application for the RBSP digitalization TA has been approved by the BSP and has ‘duly executed’ a related agreement with the central bank.

Rural banks shall submit documentary requirements for their application for the TA. Those seeking to receive TA shall also submit a certification from the president of the bank that the lender has no existing subscription to a SaaS CBS platform at the time of the application for the aid. Rural banks should also submit accomplished self-assessment checklist signed by the president and accomplished IT outsourcing questionnaire.

THE former special disbursing officer of Vice President Sara Duterte admitted on Monday that the Office of the Vice President (OVP) followed the same ‘standard operating procedure’ in handling confidential funds that was used in Davao City when Duterte was mayor.

Gina Acosta made the admission under questioning during the impeachment trial after Presiding Officer Sen. Francis Escudero asked her directly whether the practice was the same in both offices.

House of Representatives prosecution team counsel Amando Ligutan told the Senate impeachment court that Davao City was allocated P460 million in confidential funds annually from 2019 to 2022, or a total of P1.84 billion over four years.

Acosta, who served as SDO in Davao City before moving to the OVP, said she could no longer recall the amounts allocated to the city.

Ligutan later questioned Acosta about the procedure she followed in handling the OVP’s confidential funds, particularly the acknowledgement documents signed by Col. Raymund Dante Lachica, a regular Army officer and Philippine Military Academy graduate, when she released four P125-million cash tranches totaling P500 million to him.

Acosta testified that Lachica, who is due for mandatory retirement on September 22 this year, signed an internal document acknowledging each cash release but later took it back after submitting a fund utilization report and the funds were liquidated.

For his part, Escudero sought to clarify the procedure.

‘So it was no longer in your hands but in his hands?’ Escudero asked, referring to the acknowledgement document that Lachica signed for the first P125-million release.

‘It was no longer with me, Your Honor,’ Acosta replied.

Escudero asked whether the same process was followed for the three P125-million releases in 2023, with Lachica signing upon receiving the money and later retrieving the acknowledgement after submitting his fund utilization report, and the funds were liquidated before the Commission on Audit.

‘Yes, Your Honor,’ Acosta said.

Ligutan then turned to Acosta’s stint as SDO in Davao City and asked whether the same procedure was followed there.

Acosta initially said she could no longer recall. ‘I will have to recall, Your Honor, because that was a long time ago,’ she said.

Ligutan described the procedure as a ‘modus operandi,’ prompting an objection from the defense.

Escudero cautioned against the term and reformulated the question.

‘Counsel, we both know modus has a secondary and double meaning,’ Escudero said.

The presiding officer instead asked whether this was the standard operating procedure Acosta followed as SDO in both Davao City and the OVP.

‘Was this your usual practice and procedure when you were the SDO of Davao regarding the confidential funds and when you were the SDO of the OVP?’ Escudero asked.

He described the procedure as releasing confidential funds to a security officer or another person who was not bonded, having the recipient sign an acknowledgement document, and allowing the document to be taken back after a fund utilization report was submitted and the funds were liquidated before COA.

‘Yes, Your Honor,’ Acosta replied.

The admission established that Acosta followed the same procedure as SDO under Duterte in Davao City and later at the OVP.

In the OVP, Acosta testified that Lachica was not fidelity-bonded when she released four P125-million cash tranches totaling P500 million to him from December 2022 through the third quarter of 2023.

‘He was not bonded, Your Honor, but I remained the accountable officer, Your Honor. I am still the accountable person, Your Honor,’ Acosta said.

She said Duterte designated Lachica to implement the OVP’s confidential activities.

Acosta later admitted she had no personal knowledge of Lachica’s actual payments to the recipients listed in acknowledgement receipts and relied on him and the documents he supplied in accounting for the expenditures.

Unbonded

ACOSTA also admitted on Monday that she released P500 million in confidential funds to an unbonded security officer designated by Duterte, relying solely on documents he submitted to account for the expenditures.

Acosta confirmed that Lachica-the ground commander of the Vice Presidential Security and Protection Group-was not fidelity-bonded when she disbursed four P125-million cash tranches to him between December 2022 and the third quarter of 2023.

Under government auditing rules, both the head of agency and the special disbursing officer remain the primary accountable officers for confidential funds.

Acosta said she released the money to Lachica because Duterte had designated him to implement the OVP’s confidential activities.

‘That is correct, Your Honor, because he was our security officer designated by Vice President Sara Duterte to implement the confidential activities,’ she said.

House prosecution counsel Amando Virgil Ligutan established the timeline of the four P125-million releases. While Acosta acknowledged familiarity with Section 6.1.1 and Section 6.1.6 of Joint Circular 2015-01-which prohibit transferring confidential funds between accountable officers or agencies-she maintained that her actions constituted direct disbursements rather than transfers.

SPEAKER Faustino G. Dy III on Monday called for ‘moral recovery’ within the House of Representatives, emphasizing that the success of the Bagong Kongreso should be judged by the integrity of its members and the trust of the public, rather than the sheer volume of legislation passed.

Speaking following the Mass of the Holy Spirit at the House of Representatives, Dy urged lawmakers to ground their decisions in conscience and the public interest.

‘I have said this before, and I will continue to say it: A truly Bagong Kongreso must begin with moral recovery. Our standard cannot simply be how many laws we pass, but whether we become better public servants and restore our people’s faith in this institution,’ said the Speaker.

‘Being a legislator is not simply about knowing how to make laws. It is about knowing what is right and having the courage to do it-choosing integrity over convenience and the common good over personal interest,’ he said.

The Mass was attended by the Apostolic Nuncio to the Philippines, Archbishop Charles John Brown, Bishop Emeritus of Novaliches Teodoro C. Bacani Jr., members of the House; and concelebrating priests, including clergy from the Diocese of Ilagan.

Dy noted that the presence of Church leaders underscores the ethical gravity of public office, particularly when navigating political pressure.

‘There will be times when the right decision will not be the easiest decision,’ Dy said. ‘In those cases, we will need something greater than political judgment. We will need our conscience. We will need collective courage. And we will need prayers.’

He emphasized that legislative actions carry direct consequences for everyday citizens, reinforcing the need for both active listening and accountability.

‘Because behind every law we pass, every budget we approve, and every decision we make will benefit millions of Filipinos. We must therefore know how to speak but also how to listen; how to lead but also how to serve.’

Under Dy’s leadership, the House has partnered with various dioceses through its Spiritual and Moral Enhancement Program, offering regular prayer services to support lawmakers and staff. Dy concluded by stressing that the vision for the Bagong Kongreso depends on shared commitment rather than any single leader.

‘Because the Bagong Kongreso is not about one Speaker. It is about all of us-working together, guided by a common purpose and a shared responsibility to the Filipino people,’ he said.

‘And if we stand together with faith in God, faith in one another, and faith in the Filipino people, I believe we can build a Congress worthy of their trust: a Congress that knows how to listen. A Congress that serves. A Congress that does what is right. A Congress that puts the Filipino people first,’ he added.

The government’s Green Lane pipeline expanded by P40 billion in July, bringing the total value of certified strategic investment projects to P6.36 trillion from P6.32 trillion a month earlier, according to the Department of Trade and Industry (DTI).

The increase came as the Board of Investments (BOI) certified five additional projects, bringing the total number of projects under the Green Lane initiative to 244 from 239 in June. The projects are estimated to generate 425,454 jobs.

From January 1 to July 31, the BOI certified 22 projects with a combined investment value of P391.84 billion, or $6.66 billion, and expected employment of about 44,235 workers. Renewable energy continued to account for most of the Green Lane pipeline, with 187 projects worth P5.46 trillion and expected to create 276,469 jobs. These projects are distributed across the country, with the highest concentrations in Calabarzon, Ilocos Region and Central Luzon.

Digital infrastructure accounted for 10 projects worth P405.12 billion, with an estimated 20,393 jobs. The projects cover areas including internet connectivity, data centers and digital services.

Six public-private partnership, infrastructure and water projects were valued at P416.745 billion and are expected to generate 113,363 jobs.

Food security accounted for 33 projects worth P19.68 billion and an estimated 7,421 jobs, while seven manufacturing projects worth P67.04 billion are expected to create about 7,773 jobs. On the other hand, the pharmaceutical sector had one project worth P45 million, with 35 expected jobs. Despite the size of the overall pipeline, most projects remain in the early stages of development. A total of 166 projects worth about P5.52 trillion were still in the pre-development stage as of July 31.

Another 46 projects worth around P368.64 billion were under construction, while nine projects valued at approximately P190.21 billion were in the pre-operation stage. Moreover, only 23 projects, with a combined value of about P286.17 billion, were operational.

The BOI also removed 10 renewable energy projects worth a combined P137.47 billion from the Green Lane list after their service contracts were surrendered to the Department of Energy.

The Green Lane initiative was launched in February 2023 under Executive Order 18 to streamline government approvals for strategic investments.

FOLLOWING the massive success of her energetic dance-pop track ‘Hot Maria Clara,’ GMA actress and singer Sanya Lopez reveals a deeply intimate and vulnerable side of her with the new single ‘Laro.’ Produced and distributed under GMA Playlist, the track is now available across all major digital streaming platforms.

Shifting away from the high-energy, women-empowerment anthems that marked her previous song, ‘Laro’ delves into the melancholic realm of alternative pop. Characterized by catchy melodies and deeply relatable storytelling, the song is an emotional reflection on situationships, unconditional devotion, and the painful realization of unrequited love.

‘If ‘Hot Maria Clara’ was all about empowerment and a fun, danceable vibe, ‘Laro’ is more emotional. It’s about loving someone wholeheartedly, only to realize that you’re giving your heart to someone who wasn’t right for you,’ shares Sanya.

The creation of ‘Laro’ was an organic, spontaneous milestone for Sanya. The idea began during a downtime of the actress’s recording session for the primetime series Pulang Araw. Engaging in a conversation with GMA Playlist executive Rocky Gacho, Sanya pitched her desire to venture into a sound and narrative that resonated with modern experiences.

‘At that time, I was recording a Japanese song for Pulang Araw, and habang naka-standby ako, kinausap ako ni Ms. Rocky about doing another single,’ Sanya recalls. ‘Sabi ko sa kanya na if ever gagawa ulit ako ng song, gusto ko sana about situationships or relationships that a lot of people can relate to. ‘Yung tipong you gave your whole heart to someone, you genuinely loved that person, but in the end you realize na hindi pala siya ‘yung right person for you. Mapapaisip ka na lang, ‘Bakit kailangan pa siyang dumaan sa buhay ko kung hindi rin pala kami para sa isa’t isa?”

To effectively convey the song’s emotions, Sanya underwent dedicated vocal coaching before stepping into the recording booth. ‘Before we recorded ‘Laro,’ binigyan nila ako ng vocal coach who really helped me prepare for the song. We worked on my voice para mas maayos ko siyang makanta at mas magkaroon ako ng confidence,’ Sanya explains. ‘But more than anything, I really tried to understand the story behind ‘Laro’ and sing it with the right emotions. For me, it’s not just about hitting the notes; it’s about making people feel the message of the song.’

Sanya hopes that ‘Laro’ will serve as a source of comfort and empowerment for listeners navigating emotional crossroads, reassuring them that loving openly is never a flaw. ‘What I really hope is that everyone who listens to ‘Laro,’ especially those who are going through heartbreak, will realize that it’s okay. I hope this helps them move forward and remind them that everything they went through was part of the process. I also hope this song reminds everyone that there’s nothing wrong with loving. There’s nothing wrong with giving your heart to someone, even if it didn’t work out. Hindi ibig sabihin na may kulang sa iyo. Sometimes, that experience is exactly what helps you grow into a stronger and better version of yourself.’

‘Laro’ is now available on digital platforms nationwide under GMA Playlist. More updates on GMA Network can be found at www.gmanetwork.com.

Amid the seasonal rise in leptospirosis cases following recent flooding, the Philippine General Hospital (PGH) has assured the public that it is closely coordinating with the National Kidney and Transplant Institute (NKTI) to strengthen patient referral protocols.

In a statement, PGH said both hospitals are attending to an increased number of leptospirosis patients during the flooding season.

‘Even so, and in the spirit of shared responsibility, PGH remains ready to receive non-leptospirosis cases currently under NKTI’s care to allow NKTI to direct more of its capacity toward leptospirosis patients requiring specialized renal care,’ PGH said.

The arrangement, PGH said, reflects the two institutions’ longstanding partnership and shared commitment to providing timely and appropriate care regardless of which facility patients initially approach.

‘This measure strengthens, not strains, both institutions’ capacity, and PGH and NKTI remain closely coordinated to ensure a smooth transition with minimal disruption to ongoing care,’ it said.

Based on the latest Department of Health (DOH) data as of August 22, a total of 4,285 leptospirosis cases have been recorded.

The DOH said the figure is 37 percent lower than the 6,839 cases recorded during the comparable period last year.

PGH also reminded the public to avoid unnecessary contact with floodwaters, particularly if they have open wounds. Those who cannot avoid exposure may take doxycycline prophylaxis upon the advice of a physician at a rural health unit or through PhilHealth YAKAP.

People exposed to floodwaters should immediately wash and disinfect their skin and seek medical attention if they develop fever, muscle pain or headache afterward.

‘PGH remains steadfast in its mission to serve the Filipino people, and we thank the public for their continued trust and cooperation as we navigate this challenging period together,’ the hospital said.

MINDANAO could contribute more to national economic growth by shifting toward higher-value activities such as agro processing, manufacturing, and technology-enabled services, according to the Department of Economy, Planning, and Development (DepDev).

DepDev Undersecretary for Regional Development Group Carlos Bernardo O. Abad Santos said on Monday that while Mindanao has demonstrated its capacity to grow, the bigger challenge is improving the composition and quality of that growth.

‘The issue is not whether Mindanao can grow, it can. The issue is whether we can change the composition and quality of that growth,’ Abad Santos said at the Philippine Economic Briefing held in Davao.

Official data showed that Mindanao’s economy grew by 4.7 percent in 2025, faster than the 4.4-percent national growth recorded during the year.

Services led the region’s growth at 6.9 percent, while industry expanded by 2.7 percent, and agriculture by 1.9 percent.

For Abad Santos, the region’s growth needs to translate into greater productivity and more value generated within Mindanao, particularly in sectors with a large production base.

He said Mindanao needs to move beyond producing raw or low-value commodities by increasing processing and manufacturing activities and developing higher-value services.

The shift is particularly important in agriculture, where Mindanao accounts for 37.4 percent of the country’s total output from agriculture, forestry and fisheries, according to official data.

Abad Santos said Mindanao also needs to improve connectivity to reduce the cost and time of moving people, goods, and capital across the region.

‘First, we need to raise productivity by modernizing our productive base, particularly agriculture and fisheries. Second, we need to connect better by improving our transport and logistics systems,’ he said.

The region is pursuing an integrated intermodal transportation system involving airports, roads, rail, and ports, he said, adding that these investments should help businesses move goods and people more efficiently.

From there, Abad Santos identified four areas where Mindanao could build on its existing economic strengths: agribusiness and food systems; logistics and infrastructure; digital and higher-value services; and industry, including manufacturing, energy, and the green transition.

He said the region does not have to choose between traditional sectors and emerging industries, as existing activities can instead be upgraded into higher-value ones.

Agriculture, for instance, can expand into agro processing and food industries, while the region’s connectivity can support advanced logistics.

Its workforce can support digital services, while its resource base can be developed for new energy and green industries, he said.

He said this would require better infrastructure, skills aligned with the industries the region seeks to attract, stronger links between research and commercial applications, and regulations that make investment easier and more predictable.

The region would ultimately need investment capable of scaling these opportunities, he said.

‘If we get these conditions right, the payoff is simply not more investment. It is higher productivity, better jobs, more competitive industries in Mindanao,’ Abad Santos said.