Philippines secures AUD 45 million Australia grant

The Philippines, through the Department of Finance, has secured an Australian grant of up to AUD 45 million for a program designed to improve the country’s policy and business environment, create more formal jobs, and strengthen the economy.

In the announcement, the DOF said, “When businesses grow, jobs are created. When systems improve, services become faster, more accessible. When growth reaches more people, lives and communities are transformed.”

The funding will support the Promoting Growth, Resilience, Economic Stability and Sustainability in the Philippines Program, or PROGRESS, which the DOF described as Australia’s flagship initiative to help the Philippines achieve economic growth that benefits all Filipinos and remains resilient against future challenges.

The Subsidiary Arrangement for PROGRESS was signed by Finance Secretary Frederick D. Go and Australian Ambassador Marc Innes-Brown PSM.

According to the DOF, the grant-backed program is meant to help the country overcome barriers to economic growth at a time when the government is also trying to make the economy more resilient to external and climate-related shocks.

Those barriers include slow formal job creation, income inequality, systemic barriers affecting women, persons with disabilities, and marginalized groups, as well as global and regional uncertainties and vulnerability to climate-related shocks.

The program will focus on private sector growth by improving the ease of doing business and supporting small and medium-sized enterprises’ investments, especially in clean energy, climate mitigation, and other growth-enhancing sectors.

The initiative will also seek to strengthen government institutions and advance policy and regulatory reforms in strategic areas that support sustainable growth, including energy transition and critical mineral resources.

For the Philippines, the emphasis on formal job creation and regulatory reform reflects a broader push to make growth more inclusive, while improving the conditions for investment and service delivery.

PROGRESS will be undertaken by an Implementing Managing Contractor, which will be supervised and managed by the DOF and Australia’s Department of Foreign Affairs and Trade.

The program will include technical assistance to strengthen capacity, climate finance to mobilize funds for SME investments, and a Strategic Activities Fund, or SAF, to provide flexible support for research and innovation, among other interventions.

As the lead implementing agency, the DOF said it will work closely with the Australian Embassy and partner agencies, including the Anti-Red Tape Authority, Department of Energy, Department of Trade and Industry, and Department of Economy, Planning, and Development, to ensure coordinated and results-oriented implementation.

The DOF said PROGRESS is expected to deliver more quality jobs, stronger support for businesses, and a more resilient economy that benefits communities across the country.