You could be forgiven for thinking that this year’s State of the Nation Address has been uneventful. Apart from the choreographed moment when President Bongbong Marcos called for a review of all flood control projects initiated in the past three years, there seemed to be little to write about, especially from my vantage point as a supply chain observer.
I personally don’t take it as a sign that there’s little to report. For one, there is a risk of a speech’s core message being muddled when every little thing is crammed in it. Also, despite the lack of a wider acknowledgment, the work continues to lower logistics costs and make our supply chains competitive, both through the establishment of systems like the Department of Trade and Industry’s Supply Chain and Logistics Center, as well as regulatory interventions, like the reintroduction of the International Maritime Trade Competitiveness Act in the 20th Congress. One hopes that these efforts continue apace and bear fruit in the next three years, especially considering the urgency of the times, what with continued unpredictability on global trade and our precarious position as a net importer and as a disaster-prone country.
That said, I couldn’t help but notice an ironic juxtaposition in the SONA, pointing towards an issue that, if left unresolved, will adversely affect the competitiveness of our supply chains.
“The Philippines is ready,” the president said as he called for the international business community to invest in the country. “Our cavalcade of dependable and hardworking Filipinos – innately skilled, adaptable and possessed with a heart for service – are here, ready to work and succeed with you.”
And then, later in the speech: “Malinaw sa atin ang tumambad na realidad tungkol sa kabataan ngayon: ang kakulangan sa kaalaman at sa kakayahan, lalo na sa matematika, sa agham, sa pagbabasa, at sa wastong pag-unawa.”
Over the last few months warnings have been made about what some have termed a “learning crisis” in the Philippines: students lagging behind in literacy standards, high dropout rates among tertiary students, and those who do excel not getting enough support from the government. Definitely, the most alarming figure was the finding from the Philippine Statistics Authority that roughly 18 million of our high school graduates are “functionally illiterate”, meaning they are unable to use their skills in everyday situations.
Throughout the years there definitely has been an underinvestment in our education system, not just in physical facilities like our classrooms, nor in learning materials like textbooks and laptops, but in teachers and other personnel. Other things have not helped, like the mindset of some parents that additional years of study are taking away from years that one could spend making a living and supporting their family – a sentiment that some politicians have latched on to – as well as the education system as a whole being used as a political pawn, aiming to indoctrinate rather than educate.
All of this, as we face a crossroads. The democratization of technologies like artificial intelligence and automation is changing the face of the jobs we hope to generate and fill. Certain sectors of both the public and private sectors are attempting to intervene by bringing more opportunities for students to be more adept with these advances. But one can’t help but think that with our students’ fundamental skills not being up to par, these efforts can only do so much – or, worse, these efforts only impact those with the means to continue studying.
Sure, Filipinos may be dependable, hardworking, and have “a heart for service” – but are they truly “innately skilled”? And can they keep up with the changing times?
If we are unable to develop a competitive labor force, how can we attract investment, whether foreign or domestic? (Remember, our biggest companies can – and some have – chosen to manufacture products for Filipino consumption outside our shores.)
It may not seem to be such a pressing matter now. Again, from my vantage point as a supply chain observer, we have not fully embraced the aforementioned emerging technologies, thanks to cost considerations and some parties choosing to instead invest in physical facilities targeting previously underserved parts of our archipelago. But as we have seen, the pace of technology has been unpredictable; the attempts by some global players to dominate these fields, more so. The Philippines can’t afford to be left behind, but the appalling state of our education system – and the output being workers truly not up to par, no matter how hard we convince ourselves otherwise – is a great handicap.
We at SCMAP are part of many efforts to introduce supply chain education to different sectors: MSMEs, working professionals, senior high school students. There are even more efforts going on, a rightful acknowledgment of the importance of supply chain management in the country’s future economic competitiveness. But for these to truly bear fruit – not just in the hubs, but everywhere – we have to get the fundamentals right first. I fervently hope efforts to fix our education system truly materialize, and don’t just end up as promises in heavily-hyped speeches. Not everyone may realize it, but there is a lot more at stake.
2025 SCMAP Supply Chain Conference: Registration for the most prestigious event in Philippine supply chain is now open. Join us for two days of perspectives and insights on how we can continue to break barriers as one supply chain despite continuing uncertainty and disruption. Visit scmap.org/events/conference/register to book your slot.
Henrik Batallones is the marketing and communications director of SCMAP, and editor-in-chief of its official publication, Supply Chain Philippines. More information about SCMAP is available at scmap.org.
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