No skills, no industry

In the 1960s and 1970s, as Asia pursued industrialization, the Philippines supplied skilled professionals to the region. Filipino engineers contributed to South Korea’s infrastructure projects, while accountants, supervisors, and managers filled essential roles in firms across Southeast Asia. Our export of competence supported regional economic expansion.

This history underscores a stark contrast with today’s challenges. Successful manufacturing economies adhered to a fundamental principle: skills development precedes industrial growth. Proficiency in mathematics, science, and technical problem-solving laid the groundwork for factories, exports, and value chains. Where such foundations were absent, industrial progress stalled. The Philippines now faces this reality as competitors advance and international assessments highlight persistent deficiencies.

The data are unequivocal. In the Organisation for Economic Co-operation and Development’s 2022 Programme for International Student Assessment (Pisa), 15-year-old Filipino students scored 355 in mathematics—117 points below the OECD average of 472—and 373 in science, against 485. Only 16 percent achieved basic mathematics ability, placing the country near the bottom among 81 participants. Department of Education (DepEd) figures from 2023 indicate that just 28 percent of senior high school students demonstrate mathematics mastery, with fewer than 25 percent enrolling in science, technology, engineering, and mathematics (STEM) strands.

These shortcomings constrain economic potential. Despite Philippine Economic Zone Authority approvals of P260.89 billion in 2025, investments targeting semiconductors, electronics, electric vehicles, and advanced materials, high-value manufacturing advances slowly. The lack of qualified personnel impedes the transition from assembly to innovation-driven production.

International examples illustrate the pattern. Vietnam improved its Pisa mathematics performance and now anticipates electronics exports exceeding $140 billion in 2025, contributing to total exports over $370 billion. Germany maintains manufacturing leadership through rigorous mathematics education and apprenticeship systems. Japan integrated scientific principles and quality control into workforce training. South Korea aligned higher education in science and technology with industrial needs, while China set up technical institutes and shared research facilities prior to value chain advancement. In each instance, STEM capabilities preceded industrial success.

Current geopolitical shifts and technological demands—electric vehicles, artificial intelligence, and clean energy—accelerate supply chain reconfiguration. Vietnam, India, and Indonesia capture greater manufacturing shares, while the Philippines risks further marginalization. National policies, including the Electric Vehicle Industry Development Act and the Philippine Development Plan 2023-2028, demonstrate commitment, yet execution requires skilled human capital. The World Bank emphasizes that without substantial STEM improvements by 2030, the country faces entrapment in low-wage services.

DepEd holds primary responsibility, now bolstered by the 2026 national budget of P1.015 trillion—finally meeting the United Nations Educational, Scientific and Cultural Organization’s 6 percent of gross domestic product benchmark. This allocation reflects a substantial increase from 2025 levels and should prioritize STEM transformation through enhanced teacher training, computerization for digital learning, and new classroom construction tailored for science and math labs.

The Commission on Higher Education should mandate industry immersions for engineering and technology programs. The Technical Education and Skills Development Authority must expand equipment-intensive training in partnership with manufacturers, targeting 1 million certified technicians by 2028. State universities and research institutions should establish shared facilities for testing, calibration, and prototyping to support small and medium enterprises. Policy measures—scholarships, enrollment incentives, and rigorous qualification standards—can double STEM participation to 50 percent by 2030.

The Philippines once provided competent workers for Asia’s industries. That legacy demands urgent action today. Without immediate, resolute investment in STEM skills, no sustainable industry can take root—and every delay will irreversibly jeopardize the nation’s economic future, ceding ground forever to competitors who acted decisively.

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Pete Maniego is an engineer, lawyer, and economist. He was a former professor at the University of the Philippines college of engineering and the Ateneo School of Government, past chair of the National Renewable Energy Board, the Institute of Corporate Directors, the UP Engineering Research & Development Foundation, and the Energy Lawyers Association of the Philippines.