Australia Backs Philippine Economic Reform Programme With A$45 Million Grant
The Philippines has secured an Australian grant of up to A$45 million to support reforms aimed at improving the country’s policy and business environment. The initiative, known as the Promoting Growth, Resilience, Economic Stability and Sustainability in the Philippines (PROGRESS) Programme, will be led by the Department of Finance (DOF) and implemented in collaboration with several government agencies. According to details outlined in the official announcement, the programme aims to support formal job creation, strengthen institutions and encourage sustainable private sector growth.
The agreement formalising the programme was signed between Finance Secretary Frederick D Go and Australian Ambassador Marc Innes-Brown PSM. It represents Australia’s flagship initiative supporting inclusive economic development in the Philippines, with a focus on strengthening policy frameworks, improving regulatory systems and addressing structural barriers to growth.
Addressing Structural Barriers to Economic Growth
The PROGRESS Programme aims to tackle several long-standing challenges affecting the Philippine economy. These include slow growth in formal employment, income inequality and systemic barriers faced by women, persons with disabilities and other marginalised groups.
The programme will also consider the broader economic context, including global uncertainty and the country’s exposure to climate-related risks. Strengthening resilience to such shocks has become increasingly important for national development planning.
Supporting Private Sector Development and SME Investment
A central objective of PROGRESS is to expand opportunities for private sector development. This includes improving the ease of doing business and encouraging greater investment by small and medium-sized enterprises (SMEs), particularly in sectors linked to clean energy, climate mitigation and other growth-oriented industries.
Such efforts align with broader national initiatives to modernise infrastructure and energy systems, including programmes supporting digital innovation in infrastructure, energy and tourism. By strengthening regulatory frameworks and investment conditions, the government aims to create an environment that supports long-term economic expansion.
Strengthening Institutions and Policy Reform
The programme also places emphasis on strengthening government institutions and advancing regulatory reforms in strategic sectors. These include areas linked to the energy transition and the development of critical mineral resources, both of which are considered important for sustainable economic growth.
The initiative will be implemented through an Implementing Managing Contractor working under the supervision of the DOF and Australia’s Department of Foreign Affairs and Trade (DFAT). Programme components include technical assistance to improve institutional capacity, climate finance mechanisms to mobilise investment for SMEs and a Strategic Activities Fund designed to support research and innovation.
These measures complement wider efforts by the Philippines to strengthen resilience and development outcomes, including initiatives that promote international collaboration on areas such as digital readiness and national resilience.
Whole-of-Government Implementation
The Department of Finance will lead implementation while coordinating with several key agencies. These include the Anti-Red Tape Authority (ARTA), Department of Energy (DOE), Department of Trade and Industry (DTI) and the Department of Economy, Planning, and Development (DEPDev).
Through coordinated policy reform and targeted support for investment, the PROGRESS Programme is intended to expand formal employment opportunities, strengthen business confidence and build a more resilient economic foundation for communities across the Philippines.
