The Board of Investments (BOI), through its Memorandum Circular (MC) No. 2024-08, made key amendments to the 2022 Strategic Investment Priority Plan (SIPP) aimed at strengthening the Philippine education sector by fostering international collaboration and promoting academic excellence.
The changes in the MC include considering global industry updates involving the development of education cities and branch campuses. The guidelines include provisions for the establishment of branch campuses in the Philippines, as defined under the Republic Act (R.A.) No. 11448 or the Transnational Higher Education (TNHE) Act.
In particular, Foreign Higher Education Institutions (FHEIs) may establish branch campuses in partnership with local entities, provided that the local partner is at least 60% Filipino-owned.
Education City, now under the Infrastructure and Logistics of the SIPP, encompasses the development of a contiguous area for the establishment and operation of education facilities and buildings with digital infrastructure as well as the provision of auxiliary services that will enhance students’ education experience. Education facilities and buildings may include research, healthcare, athletic, culture, and art facilities.
BOI Executive Director Ma. Corazon Halili-Dichosa of the Industry Development Services (IDS) highlighted the significance of these amendments in aligning the education sector with the progressive vision of the TNHE Act.
“The amendments are pivotal to advancing the national education agenda,” said Executive Director Halili-Dichosa. “The new guidelines will enhance opportunities for international collaboration that would facilitate access to expertise and knowledge relevant to global industry trends, empower students, and bridge the gap between academe and industry,” she added.
The issuance of the guidelines to support and incentivize the establishment of education cities and campuses was among the presented initiatives of the BOI during the Academe-Industry Matching (AIM!) Program launch in November 2024.
The AIM! Program is a multi-sectoral, multi-industry partnership program for the workforce development of the BOI. The Program provides the platform for intensified coordination with education agencies and institutions for industry needs to ensure a job-ready workforce adept at technology and the future of work.
To cover all bases, the Program has three Pillars that are implemented with key partner agencies and development partners. Pillar 1 is on Basic Education with the Department of Education (DepEd) under the Program “Kids for the Future of Philippine Industrialization” or K4F, which is designed to be an early-stage intervention to help students be aware of industry trends and needs and aid them in choosing tracks/courses.
Pillar 2, under the Program “TRANsformational Skills-based Career ENrichment and Development” or TRANSCEND, involves working mainly with the Technical Education and Skills Development Authority (TESDA) and other training institutions to update training regulations, provide skilling opportunities and make available trainings that are responsive to industry needs.
Pillar 3 is on Higher Education with the Commission on Higher Education (CHED) under the Program “Enhance Learning Ecosystem and VAlue-adding Competencies Towards Employment” or ELEVATE, which is intended to institutionalize best practices and strengthen collaboration between businesses and educational institutions, cultivate highly-skilled and employment-ready graduates, and support implementation of the TNHE Act.
“With a young and vibrant population, the Filipino talent is the country’s biggest advantage. The Filipino labor has been praised for their communication skills and for being highly trainable and adaptable to different work environments. In the 2023 IMD World Competitiveness Report, our skilled labor was identified as the top factor for the attractiveness of the Philippine economy,” Executive Director Halili-Dichosa emphasized.
The Philippines’ total population is around 116 million and is projected to be around 121 million by 2030. The country graduates more than 750 thousand students every year and of these, around 10-12% are graduates from engineering and technology courses.
Moreover, the Philippines has a very young population with a median age of 26 years old, making it an attractive destination for investment and a reliable source of global talent. The inclusion of Education City and branch campuses in the SIPP will help nurture this talent pool while fostering international ties.
