The Philippines is poised to strengthen formal employment and build greater economic resilience after securing a 45 million Australian dollar grant, equivalent to about PHP1.88 billion, through the Department of Finance.
In a statement on Wednesday, the DOF said the grant will fund a major program aimed at improving the country’s policy landscape and business environment, with the goal of making growth more inclusive and sustainable.
“When businesses grow, jobs are created. When systems improve, services become faster and more accessible. When growth reaches more people, lives and communities are transformed,” the DOF said.
The funding will support the Promoting Growth, Resilience, Economic Stability, and Sustainability in the Philippines Program, or PROGRESS, which was formalized through an agreement signed by Finance Secretary Frederick Go and Australian Ambassador Marc Innes-Brown.
Described as Australia’s flagship initiative in the Philippines, the PROGRESS program is designed to help the country achieve broader-based economic growth while reinforcing its resilience against future challenges.
The initiative will target long-standing barriers to formal job creation and seek to address income inequality, while opening more opportunities for women, persons with disabilities, and other marginalized sectors that often face difficulty entering the formal economy.
A key focus of the program will be support for small and medium-sized enterprises, which are expected to receive assistance in investing in clean energy, climate mitigation, and other high-growth sectors.
Beyond enterprise support, the program will also work to strengthen government institutions and push policy and regulatory reforms in strategic areas critical to long-term development, including the energy transition and critical mineral resources.
The DOF will oversee implementation of the program, which will be carried out by an implementing managing contractor under the supervision of Australia’s Department of Foreign Affairs and Trade.
PROGRESS will deliver technical assistance, climate finance for SME investments, and a Strategic Activities Fund intended to support research and innovation.
To ensure that the program delivers concrete results, the DOF said it will coordinate closely with the Anti-Red Tape Authority, the Department of Energy, the Department of Trade and Industry, the Department of Economy, Planning, and Development, and the Australian Embassy in the Philippines.