Asia CEO Awards: Leadership development crucial to sustain PH economic growth

MANILA, PHILIPPINES—“There is an urgent need for companies in the Philippines to plan for succession,” asserts distinguished economist Dr. Bernie Villegas.

Dr. Bernie Villegas - Economist

A member of the esteemed Board of Judges of the Asia CEO Awards, Dr. Villegas has remained consistent in his bold economic forecasts for the Philippines, even stating in numerous occasions that “regardless of who will occupy the highest seat in the land come 2016, the country’s growth trajectory will continue on for the next 10 years.”

The Philippines’ engines of growth, Villegas says, has nothing to do with politics. “We have the more than 10 million Filipinos sending $28 billion a year, which increases at three to five percent annually, as well as the high earnings of the BPO sector that’s now at $18 billion and growing annually at 18 percent—that’s the amount of purchasing power you have in the hands of Filipinos today, and these are all independent of politics,” he states.

It is precisely because the Philippines is now one of the fastest growing economies in Asia that the country is facing the urgent need to develop more leaders within business organizations—across all levels. “If we’re growing, we have to make sure we have the right leaders in our corporations,” Dr. Villegas says.

As the pace of business quickens, there is a common tendency for organizations to focus on immediate business concerns and pay less attention to such systemic issues as leadership development that ultimately drive long-term success. According to Dr. Villegas, this is exactly what is happening in most businesses in the Philippines. “A lot of companies do not really plan for succession. I’m concerned that some corporations keep on recycling executives who are already in their 70s—it’s evident that management development isn’t being given a lot of priority,” he says.