THE PHILIPPINES should expand the use of public-private partnerships (PPP), particularly in infrastructure projects, as recent developments surrounding flood control projects underscore the need for stronger accountability in government spending, according to Ayala Corp. Chairman Jaime Augusto Zobel de Ayala.
“We have had some problems in laying out infrastructure. We should just grab the bull by the horns and say infrastructure is important. Let us work on the PPP infrastructure structure that we have in the country to allow more capital from the private sector to enter,” Mr. Zobel said during the Association of Southeast Asian Nations (ASEAN) Editors and Economic Opinion Leaders Forum on Tuesday.
The government should also encourage greater private sector participation in large infrastructure projects to help strengthen accountability while improving the country’s legal framework governing public-private partnerships, he added.
“[We must] put in place firm rules and regulations, uphold the rule of law behind them, and allow private capital to enter that field. Generally, the private sector is quite accountable for its results. And if we can use the problems that we’ve had to turn that around and really give the PPP structure a much bigger push,” he said.
Mr. Zobel said infrastructure development remains a key component of gross domestic product (GDP) growth.
The country’s economic expansion slowed to a post-pandemic low in the fourth quarter of 2025, as reduced government spending weighed on investments and consumption, bringing full-year growth below target for the third consecutive year.
Data released by the Philippine Statistics Authority in January showed fourth-quarter GDP grew by 3%, slower than the 5.3% expansion recorded in the same period in 2024 and the revised 3.9% growth in the third quarter of 2025.
He said the country should build on existing momentum to accelerate infrastructure development.
“We should all raise the level of efficiency that we have in all our business dealings and in our companies to be able to compete with the best in the world,” he said.
The flood control controversy followed an investigation ordered by President Ferdinand R. Marcos, Jr., who called in his State of the Nation Address for a full review of flood control projects implemented over the past three years.
The President said about P100 billion of the P545 billion allocated for flood control projects since 2022 had been awarded to only 15 contractors.
“ I believe as us in the Philippines, we should take advantage of this year where we are the center, a little bit, of the ASEAN community to really sell our country, show what capabilities we have, make ourselves visible, and use it really to build momentum around the new Philippines story,” he said.
Ayala Corp. is the holding company of the Ayala Group, with businesses spanning real estate, banking and financial services, telecommunications, power generation, healthcare, logistics, infrastructure, industrial manufacturing, education, and technology services.
At the local bourse on Tuesday, shares in Ayala Corp. closed unchanged at P577 apiece. — Ashley Erika O. Jose
