THE Federation of Philippine Industries (FPI) said enhancing the Philippines’ manufacturing and industrial capacities will help raise incomes and lift more Filipinos out of poverty.
“We need to widen the base of employment-generating growth — manufacturing, industrial capacity, and productive private investment — as the primary engine of further poverty reduction, while maintaining the safety net that guards against reversal,” FPI Chairperson Elizabeth H. Lee said in a statement on Wednesday.
The share of Filipinos living in poverty declined to 9.7% from 15.5% in 2023, according to the 2025 Family Income and Expenditure Survey. This translated to about 11.08 million poor Filipinos, lower than the 17.54 million recorded in 2023.
“It is clear that what produced this result is income growth as the topline driver, while social protection served as the floor,” Ms. Lee said.
She noted that social protection programs became a safety net for households at risk of sliding below the poverty line.
“In short: growth moved the number; the safety net kept it from sliding down,” she added.
However, Ms. Lee cited the need to expand income-generating industries, backed by social protection programs, as households remain vulnerable to external shocks.
“Moving forward, we must strengthen the floor while expanding the topline, especially amid continuing Middle East instability, with inherent risks posed to remittances, fuel and food prices, and household purchasing power,” she said.
According to the Philippine Statistics Authority, poverty incidence among families is defined as the proportion whose incomes fall below the minimum needed to meet basic food and nonfood requirements.
Analysts have warned that relying on a single poverty metric would risk disregarding Filipinos who remain only marginally above the official threshold. — Beatriz Marie D. Cruz