By Luisa Maria Jacinta C. Jocson, Senior Reporter
MILAN, Italy — The government has approved more infrastructure flagship projects (IFP), bringing the total to 207 projects worth $178 billion (around P9.86 trillion), the Department of Economy, Planning, and Development (DEPDev) said.
As of April 30, the government’s list of flagship projects had risen to 207 from the previous 186 projects that were valued at P9.6 trillion.
“These projects aim to lower costs, promote inclusion, and build resilience across the economy,” DEPDev Secretary Arsenio M. Balisacan said at the Philippine Economic Dialogue on the sidelines of the 58th ADB Annual Meeting here.
The IFPs are in various stages of implementation, he said, and mainly cover connectivity, agriculture, water security, and health.
Broken down, the bulk of the projects are related to physical connectivity (139).
This is followed by water resources (32), agriculture (nine), digital connectivity (six), health (five), power and energy (three), housing (two) and education (two), among others.
“Our renewable energy sector ranks among the world’s most attractive, supported by abundant solar, wind, hydro, and geothermal resources and a firm national commitment to sustainability,” Mr. Balisacan said.
DEPDev Undersecretary Joseph J. Capuno said that they added some projects but also cut others. There were also projects included that are purely private sector undertaking, he said.
“They fall into the definition of what we call flagship. That’s why if there’s a PPP (public-private partnership) that is already private, that satisfies the criteria of flagship, then it can be counted,” Mr. Balisacan added.
“Provided the private sector proponent will agree and comply with the requirements, like full disclosure.”
Last year, the government completed seven IFPs. It is targeting for 13 of these projects to be accomplished this year.
The Marcos administration is seeking to spend 5-6% of gross domestic product (GDP) on infrastructure annually.
$2-TRILLION ECONOMYMeanwhile, the Philippines could swell to a $2-trillion economy in the next 25 years, Mr. Balisacan said.
“At current growth trajectories — and barring significant external shocks — we anticipate reaching a $2-trillion economy by 2050, supported by a young and expanding population, making the Philippines an attractive destination for long-term investment.”
The country’s economic output was valued at around $392 billion in 2024.
“With a median age of just 27, our youthful, tech-savvy workforce is a competitive advantage in today’s dynamic global environment,” Mr. Balisacan said.
“Gross national income (GNI) per capita stands at $4,320, positioning us firmly on the path toward upper middle-income status,” he added.
By 2050, DEPDev sees the country’s GNI per capita reaching $18,336, with a population of 136 million and a median age of 37 years.
The Philippines is currently classified as a lower middle-income country based on latest World Bank data.
According to the World Bank’s classification, an economy is considered lower middle income if the GNI per capita level is $1,146 to $4,515.
Upper middle-income countries are those that have a GNI per capita of $4,516 to $14,005.
FREE TRADEMeanwhile, Mr. Balisacan said the Philippines should continue pursuing free trade agreements with as many countries.
“My view is that we should be opening more FTAs. Not just with the US, but with many countries. And do it fast. Because that’s where many of our neighbors are going.”
He noted that Singapore has an FTA with nearly all countries. The best strategy would be to forge bilateral and multiregional FTAs, he added.
Prior to the tariff orders, the Philippines had been seeking to secure a bilateral free trade agreement with the United States.
Earlier this year, the Department of Trade and Industry said that it will double down on securing an FTA with the US.
Mr. Balisacan said the country should negotiate an FTA with the United States amid these tariff orders.
“It’s hard to negotiate on a piecemeal basis because that can distort your tariff trade policy. When you negotiate, you should look at… the net effect, and be able to see that in the end, you’ll get better results.”