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BusinessWorld Economy

Gov’t urged to ensure productive investments in education, health

INVESTMENTS in education and health are vital to supporting economic expansion, but their impact could be limited if funds are not put to productive use, the Philippine Institute for Development Studies (PIDS) said.

Context & Analysis

For Philippine firms, the policy question is less about the size of public budgets for schools and hospitals and more about whether those budgets improve output per worker. A business owner hiring technicians, nurses, accountants, or drivers will care less about headline spending than about whether graduates arrive with usable skills, whether employees can access timely preventive care, and whether public services reduce the time lost to illness, treatment delays, or administrative bottlenecks in daily operations.

This matters because human-capital quality affects operating costs across the economy. If education spending expands enrollment but does not strengthen technical training, digital literacy, or workplace readiness, companies may still pay for internal upskilling while competing for a thin pool of qualified candidates. If health spending builds facilities but leaves staffing shortages, supply gaps, or weak referral systems in place, households may continue facing long wait times and out-of-pocket expenses. Those costs do not disappear; they show up as lower disposable income, higher absenteeism, slower productivity growth, and weaker consumer demand.

The regulatory and institutional setting is therefore just as important as the budget itself. Businesses benefit when education and health programs are tied to transparent procurement, accountable local execution, labor-market data, and clear performance indicators such as school completion, hospital throughput, vaccination coverage, and digital records. For investors and corporate planners, the next signal to watch is not new announcements but implementation: whether funds turn into faster service delivery, better-trained workers, a more stable labor supply, and lower frictions for firms expanding or hiring in the Philippines.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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