Indonesia, the 2nd largest economy of Southeast Asia, successfully attracted 15.39 million foreign visitors in 2025 and it is already looking forward to attracting even more this year, according to a news report by VnExpress.
To put things in perspective, posted below is an excerpt from the news report of VnExpress. Some parts in boldface…
Indonesia, the largest economy in Southeast Asia, welcomed 15.39 million foreign visitors in 2025, exceeding its target of 14-15 million arrivals.
“We have exceeded our target and performed better than our previous projections,” Tourism Minister Widiyanti Putri Wardhana said at a meeting in Jakarta on Wednesday, as quoted by Antara News Agency.
Government figures show that average spending per foreign visitor reached US$1,267 in 2025, surpassing the target of $1,220.
Malaysia remained the biggest contributor to Indonesia’s tourism revenue, while the United Arab Emirates posted the fastest growth in visitor numbers.
Arrivals from China rose sharply, reaching 1.34 million in 2025, the highest level in six years, according to Xinhua News Agency. The data indicates that travel from China to Indonesia has not only recovered but has also exceeded pre-pandemic levels.
By doing the math of the numbers revealed in the above news report, US$1,267 multiplied with 15.39 foreign tourists is equal to roughly US$19.5 billion in foreign tourism revenue. That is a huge economic boost for Indonesia.
Let me end this piece by asking you readers: What is your reaction to this development? Have you ever toured Indonesia? If you have visited Indonesia, what did you enjoy the most while touring there?
Vietnam, which is already one of the leading players of Southeast Asia on foreign tourism, is off to a powerful start as it successfully attracted 2.5 million foreign tourists in January 2026 alone, according to a news report by VnExpress. The relaxed visa policies and enhanced tourism campaigns were factors behind the early success.
To put things in perspective, posted below is an excerpt from the news report VnExpress. Some parts in boldface…
Vietnam received 2.5 million foreign visitors in January, its highest monthly number ever, thanks to relaxed visa policies and increased tourism campaigns.
It represents an increase of more than 21% from the previous month, data released Tuesday by the General Statistics Office shows.
The composition of Vietnam’s top source markets changed during the month. South Korea overtook mainland China to become the top market with nearly 490,000 visitors, and China was next with 460,000.
Cambodia emerged as the most notable mover with more than 223,000 arrivals to rise to third place overtaking Taiwan. The rest of top 10 comprised Taiwan, Japan, the U.S, Australia, Russia, India, and Malaysia.
Industry insiders attribute the jump to ground-breaking visa policies, strong innovation in tourism promotion and marketing, greater product diversification, and improved service quality.
Let me end this piece by asking you readers: What is your reaction to this development? Have you ever toured Vietnam? With the strong start, do you think Vietnam will be able to attract more than 30 million foreign tourists this year? What is the first thing that comes to your mind when it comes to tourism in Vietnam?
This early, Malaysia is aiming at the top of the 34th edition of the Southeast Asian Games (SEA Games) which it will host in 2027, according to news report by VnExpress. Malaysia finished 4th place in the 2025 SEA Games held in Thailand with fifty-seven gold medals won.
To put things in perspective, posted below is an excerpt from the news report of VnExpress. Some parts in boldface…
Malaysia’s Ministry of Youth and Sports (KBS) has set the goal of the country being overall champions at the Southeast Asian Games (SEA Games) in 2027, which will be hosted by Malaysia.
Newly appointed Youth and Sports Minister Mohd Taufiq Johari said after taking office on Jan. 16 that the ministry, together with the National Sports Council (NSC), will strengthen cooperation with national sports associations and others to work towards that goal.
He expressed confidence that Malaysia could emerge as the strongest team at the SEA Games 2027, and voiced optimism about repeating the overall championship the country secured when it last hosted the event in 2017.
Taufiq praised the dedication and fighting spirit displayed by Malaysian athletes at the SEA Games 2025 in Thailand, saying he hoped they will maintain the same qualities when Malaysia hosts the Games in 2027.
He added that the KBS, together with the NSC and relevant agencies, have already drawn up detailed plans and a clear timeline, including the organization of workshops, to ensure medal targets can be achieved.
Apart from being a highly competitive nation in the SEA Games, Malaysia itself is the 2nd most visited nation of Southeast Asia in 2025. Hosting the SEA Games in 2027 could help it attract more foreign tourists in the short term.
Let me end this post by asking you readers: What is your reaction to this recent development? Are you convinced that the preparations initiated by Malaysia will pay off nicely during the 2027 SEA Games? Being the host nation, what sports do you think Malaysia could add to or subtract from the 2027 SEA Games? Do you feel excited about the next Southeast Asian Games?
Thailand, the 2nd most visited nation of Southeast Asia in 2025, has set ambitious tourism targets for itself for 2026 and it includes achieving US$95 billion in tourism revenue, according to a VnExpress news release. Thailand attracted over thirty million international arrivals last year which was actually a decline of more than 7% compared to 2024.
To put things in perspective, posted below is an excerpt from the news report VnExpress. Some parts in boldface…
The Tourism Authority of Thailand (TAT) has expressed confidence that the country’s tourism sector will earn 3 trillion THB (US$95.35 billion) in revenue this year through its “Amazing 5 Economy” strategy.
The plan targets an 11% increase in international visitors, enhanced domestic tourism, and a focus on sustainable, high-quality growth despite global challenges.
TAT aims for 36.7 million international arrivals and about 210 million domestic trips in 2026. Meanwhile, the revenue target includes 2 trillion THB from international markets, with an expected 11% increase in international tourist arrivals, and 1 trillion THB from domestic tourism, projected to grow by 4%, said TAT Governor Thapanee Kiatphaibool.
In 2026, TAT plans to reignite quality tourism growth by addressing challenges such as geopolitical tensions, increasing global competition, and domestic factors like the strong baht, household debt, safety concerns, and natural disasters. The key to success lies in the “Amazing 5 Economy” framework, which includes life economy, sub-culture economy, night economy, circular economy, and platform economy.
In 2025, Thailand recorded total tourism revenue of approximately 2.7 trillion THB. International arrivals reached 32.97 million, down 7.23% year-on-year.
It saw declines in short-haul markets such as Malaysia and China. However, long-haul markets showed strong momentum, with visitors from Europe, the Americas, the Middle East and Africa reaching a record 10.8 million.
Notably, arrivals from the U.K. and the U.S. each surpassed one million for the first time. Domestic tourism also expanded, with more than 202 million trips, up 2.7%.
Let me end this piece by asking you readers: What is your reaction to this development? Have you ever toured Thailand before? If you did, how long did you stay in Thailand and how was your overall travel experience there? Do you think Thailand will be to achieve its ambitious tourism targets this year?
A year ago, Donald J. Trump returned as President of the United States and a wide series of changes were realized since January 20 of 2025. Those changes are still happening and it is very clear Trump’s America made impact not only on Americans but also on the world. Trump is on his 2nd term as President and he has three years remaining.
As such, the White House issued a statement titled “365 WINS IN 365 DAYS: President Trump’s Return Marks New Era of Success, Prosperity” which contains a very extensive list of changes and developments since January 20 of 2025. The statement contains an extensive list of developments covering a wide series of categories such as economics, immigration, national security, border security, jobs, income, international relations and more.
Clearly, I cannot highlight all the items from the White House statement in this blog post. What I can share with you are the items that caught my attention.
To put things in perspective, posted below are excerpts from the White House statement. Some parts in boldface…
Item #1 – Achieved negative net migration in 2025, reversing a 50-year trend and restoring U.S. control over immigration flows for the first time in a generation.
Item #2 – Removed more than 2.6 million illegal aliens from the United States through deportations and voluntary self-departures.
Item #3 – Carried out over 650,000 arrests, detentions, and deportations of illegal aliens — including the worst of the worst criminal illegal alien killers, rapists, gang members, and repeat offenders.
Item #17 – Revoked visas tied to pro-Hamas agitators on college campuses, restoring safety, free speech, and American values to universities across the nation.
Item #28 – Rescued 62,000 missing migrant children from trafficking, forced labor, and exploitation networks tied to illegal migration — most of whom were lost during the Biden Administration.
Item #31 – Revoked Temporary Protected Status for over 500,000 migrants — a decision upheld by the Supreme Court.
Item #53 – Delivered the largest one-year decline in homicides in U.S. history by launching targeted federal crime crackdowns and ending Biden-era non-enforcement.
Item #69 – Created 654,000 private-sector jobs following deregulation, tax relief, and restored investment confidence.
Item #70 – Ensured 100% of net job growth went to native-born Americans by enforcing immigration laws.
Item #71 – Achieved massive economic growth, with real GDP rising 4.3% in the third quarter of 2025 — smashing economists’ expectations and setting the stage for future growth, with GDP projected to be even higher in the fourth quarter as President Trump’s policies continue to take effect.
Item #79 – Signed the Working Families Tax Cut, delivering the largest middle-class tax relief package in modern U.S. history and saving 5.9 million jobs.
Item #80 – Delivered on his No Tax on Tips campaign promise.
Item #106 – Secured new and improved trade agreements with major U.S. trading partners covering more than half of global GDP — including the United Kingdom, European Union, Japan, China, Republic of Korea, Indonesia, Malaysia, Thailand, Vietnam, Israel, Switzerland, the Philippines, and Cambodia.
Item #107 – Sent tariff revenues soaring, collecting $300 billion under expanded enforcement and new policies.
Item #108 – Reduced the trade deficit to its lowest since 2009.
Item #141 – Ended the Israel–Hamas war by imposing a ceasefire framework, securing the release of hostages, and enacting a landmark Gaza Peace Plan to unleash total security and prosperity for all in the region.
Item #144 – Brokered peace between India and Pakistan.
Item #145 – Brokered peace between the Democratic Republic of Congo and Rwanda.
Item #151 – Destroyed Iran’s nuclear weapons capability through coordinated military action, sanctions escalation, and intelligence operations.
Item #161 – Secured the capture of long-wanted narcoterrorist Nicolás Maduro, paving the way for his prosecution in the U.S.
Item #229 – Rolled out new merit-based federal hiring plans, ensuring the government’s hiring decisions are based on merit only — including at the Federal Aviation Administration, where the Biden Administration specifically recruited individuals with intellectual disabilities and psychiatric issues.
Item #313 – Established the Make America Healthy Again Commission tasked with investigating and addressing the root causes of America’s escalating health crisis — with an initial focus on childhood chronic diseases.
The selected items shared above are only a portion of the extensive list of the White House statement. Still, it give you an idea as to how vast the Trump administration’s initiatives really are. Truly, America is back and we should observe what else could President Trump and his team do over the next three years.
Let me end this piece by asking you readers: What is your reaction to this development? Among the many initiatives Trump launched since January 20, 2025, how were you affected? Do you think the international community is respecting America more under the leadership of President Trump? Do you think the US economy is taking off towards a new economic boom? Do you think Trump’s America should start striking the terrorist state of Iran to bring down the Islamic regime once and for all?
Vietnam, a nation ravaged by war decades ago, has emerged as a major tourism magnet in both Southeast Asia and Asia as a whole after successfully attracting more than twenty-one million foreign tourists in 2025, according to a VnExpress International news report. The figure is a new all-time high. What Vietnam achieved was more than 20% higher than its 2024 foreign tourist numbers. For 2026, Vietnam is aiming high with a target of 25 million foreign visitors.
To put things in perspective, posted below is an excerpt from the news report VnExpress. Some parts in boldface…
Vietnam welcomed a record number of foreign tourists in 2025 with 21.2 million, up 20.4% from the previous year and the highest ever, according to General Statistics Office.
Mainland China was Vietnam’s biggest source of visitors last year with 5.2 million arrivals, up 41% year-on-year, followed by South Korea with 4.3 million and Taiwan with 1.23 million.
The U.S. ranked fourth with 848,000, followed by Japan with 814,000. The rest of the top 10 were India (746,000), Russia (689,000), Cambodia (687,000), Malaysia (573,000) and Australia (548,000).
Tourism industry insiders attributed Vietnam’s strong performance to visa reforms.
Foreign tourists welcomed in Vietnam. (photo credit: Ho Chi Minh City Department of Tourism)
In March the government decided to extend visa exemptions until 2028 for citizens of 12 countries: Denmark, Finland, France, Germany, Italy, Japan, Norway, Russia, South Korea, Spain, Sweden, and the U.K.
In August it waived visa requirements for stays of up to 45 days for citizens of 12 more countries: Belgium, Bulgaria, Croatia, Czechia, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia, Slovenia, and Switzerland.
This expanded the unilateral visa waiver list to 24 countries and the total number including bilateral waivers to 39.
Let me end this piece by asking you readers: What is your reaction to this development? Considering the strong international tourism momentum it has right now, do you think Vietnam will succeed in attracting 25 million foreign tourists this year? Do you think a lot more visitors from Europe will come to Vietnam this year?
With 2025 already behind us, one has to wonder how the Philippines performed when it comes to attracting foreign tourists and as of this writing, the final statistics have yet to be announced by the government. What is clear is that the Philippines really slumped on international tourism last year and the nation is behind many of its Southeast Asian neighbors, according to a recent news article by VnExpress International.
To put things in perspective, posted below is an excerpt from the news article of the VnExpress International. Some parts in boldface…
Vietnam and Malaysia are rising tourism stars in Southeast Asia thanks to relaxed visa policies and improving infrastructure while Thailand has lost its lead due to border clashes and safety concerns.
Vietnam received its 20th millionth foreign visitor in a year for the first time at the Phu Quoc International Airport on Dec. 15, marking a milestone for its tourism sector. The full-year is expected to exceed 21 million, surpassing the previous record of 18 million achieved in 2019 before Covid.
With its 21% growth rate this year, Vietnam is regarded by the United Nations World Tourism Organization as one of the fastest-growing markets in the world.
Malaysia attracted 28.2 million tourists in the first eight months of this year, a 14.5% increase year-on-year.
The industry will be supported by stronger Chinese tourist arrivals, improving flight connectivity and the government’s ambitious “Visit Malaysia 2026” campaign, according to HSBC Global Research.
“Malaysia is on track to easily exceed its 2025 tourism target of 31.4 million tourists, making it one of the few ASEAN economies to achieve its target.
“We estimate the number of tourists is likely to exceed 40 million.”
This year, both countries have strived to ease visa polices, enhance promotion campaigns and improve airport infrastructure.
Indonesia and Laos have also seen increasing tourist numbers.
Indonesia received over 12.76 million foreign visitors in the first 10 months, a 10% increase, with Malaysia, Singapore, Australia, and India being the leading source markets. Laos received 3.8 million, a 13% increase.
Challenging year for Thailand, Cambodia – Once a tourism powerhouse in Southeast Asia, Thailand has struggled with setback after setback this year.
The crisis began in January as many Chinese tourists canceled their trips to the country following the high-profile abduction of Chinese actor Xing Xing.
Two months later a deadly earthquake in Myanmar that sent tremors across Bangkok caused widespread damage to the tourism industry.
Escalating military clashes along the Thai-Cambodian border also triggered a surge in cancellations across provinces near the fighting. Some countries warned their citizens to postpone traveling to Thailand.
Arrivals as of early December declined by 7% to 30 million. Thailand had received 40 million tourists in 2019 and 35 million last year.
Meanwhile, Cambodia’s reputation took a beating in the eyes of South Koreans due to online scams and the disappearance of hundreds of their fellow citizens who entered that country.
The South Korean government has issued warnings to its citizens to cancel or postpone non-essential travel to the Cambodian capital Phnom Penh and areas like Sihanoukville and Bokor Mountain.
Cambodia attracted only 4.75 million tourists in January-October, a decrease of 11.6%.
The Philippines received 4.7 million foreign visitors in the first 11 months of the year, a 3.02% decline due to significantly lower arrivals from South Korea and China.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines still has a lot of problems to solve regarding infrastructure, tourism promotions and domestic travel costs before it could become competitive with its Southeast Asian neighbors? If ever the Philippines fails to hit its 2025 foreign tourist arrivals target, do you think the Department of Tourism (DOT) will once again point to tourism revenues as a barometer for success? With its current standing on international tourism, do you consider the 2023-2028 National Tourism Development Plan (NTDP) of the Philippines a failure already?
Even though there already is a foreign tourism boom in Southeast Asia, the Philippines has literally been left behind by its neighbors as it attracted only 5.235 million international tourist arrivals for the period of January to November 2025, according to a news report by BusinessWorld.
To put things in perspective, posted below is an excerpt from the report of BusinessWorld. Some parts in boldface…
VISITOR ARRIVALS in the Philippines fell by 2.16% in the first 11 months, amid a decline in tourists from South Korea and China, Tourism department data showed.
Data from the Department of Tourism (DoT) showed international tourist arrivals dropped to 5.235 million in the January-to-November period from 5.35 million in the same period in 2024.
Of the tourist arrivals, the bulk or 4.918 million were foreign tourists, while the rest were overseas Filipinos.
South Korea remained the biggest source of tourists in the first 11 months, accounting for 21.66% of the total. While 1.134 million South Koreans visited the Philippines as of November, this was a 21% decline from the 1.436 million Korean tourists a year ago.
The US was the second-biggest source of tourists, at 894,835 or 17.09% of the total as of end-November. This was 6.57% higher than last year’s 839,635 tourist arrivals from the US.
Japan was the third-biggest source of tourists, accounting for 406,794 or 7.77% of the total, 15.36% up from 352,630 a year ago.
Tourist arrivals from Australia increased by 16.17% to 268,892 in the 11-month period. Meanwhile, tourists from China fell by 16.55% to 248,339 as of end-November.
The other top markets were Canada, Taiwan, the United Kingdom, Singapore, and Malaysia, which cumulatively accounted for 793,750 of the total arrivals.
“The weaker South Korean won amid a volatile political and economic situation over the past year and slower economic growth in China, which is the world’s second-biggest economy, on top of territorial disputes partly weighed on foreign tourism numbers,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Mr. Ricafort noted that the government should improve infrastructure to make it more convenient for tourists to travel around the country.
“Challenges include the need to further expand and develop tourism-related infrastructure such as airports, seaports, accommodation facilities, and train systems, including the Metro Manila subway and toll roads,” he added.
Despite the decline in the first 11 months, Mr. Ricafort said that it is still possible for the country to surpass the tourist arrivals last year, which reached 5.949 million.
“It is still possible, considering some seasonal increase in foreign tourists during the Christmas holiday season, especially overseas Filipino workers and balikbayans, to spend the most festive time of the year, while others escape winter,” he said.
“A higher US dollar-peso exchange rate would make it cheaper for foreign tourists to come to the Philippines,” he added.
Meanwhile, Mr. Ricafort noted the growth in tourist arrivals from India and other countries, which helped “offset the decline in major traditional sources such as South Korea and China.”
India was the 11th biggest source of tourist arrivals in the January-to-November period, accounting for 85,885 or 1.64% of the total. Tourists from India increased by 17.06% from 73,369 arrivals in the same period in the previous year.
Earlier this year, the Philippines and India signed the Implementation Program on Tourism Cooperation for the years 2025 to 2028.
For his part, Colliers Research Director Joey Roi H. Bondoc said that with only 5.235 million as of end-November, it will be difficult for the country to even surpass last year’s arrivals.
“I think it will be very difficult… We may not be able to beat that or even meet that, but of course we want to end the year stronger,” he said in a phone interview.
“We see a lot of foreign tourists still in December because of the holiday season. Definitely that optimism should spill over to next year,” he added.
As for the drop in arrivals from South Korea, Mr. Bondoc attributed this to the economic downturn and political crisis in the country.
“If you look at some integrated casinos, they were initially targeting Koreans… so they are experiencing the pinch of slower arrivals from South Korea,” he said.
Mr. Bondoc said the Philippines should try to attract tourists from other markets.
For further insight about the tourism industry problem of the Philippines, watch the CNA Insider video below.
Let me end this post by asking you readers: What is your reaction to this recent development? Did you think the Philippines can still beat its 2024 record of international visitor arrivals and generate huge revenues for the economy? Do you think the current administration will be able to improve the nation’s infrastructure and make travel more efficient and convenient for all tourists? Do you think the Philippines is too expensive when it comes to air travel?
Images created with artificial intelligence (AI) applications that got shared on social media continue to fool people. It is unfortunate because AI is so accessible through apps and online, people can use them and create fake stuff that easily capture people’s attention.
For starters, look what happened in Japan when someone used generative AI to create a fake image about a bear on a road, shared it online and scared the local community. This was during the time when bear attacks in Japan increased.
Recently, deception caused by AI-generated imagery took its toll in parts of Southeast Asia. To put things in perspective, posted below is an excerpt from the technology article of VnExpress.net. Some parts in boldface…
When Thu saw a viral video purportedly showing a woman and her grandchild trapped in floodwaters in central Vietnam, she almost shared it until some things made her pause.
Thanh Thu first encountered an AI hoax last month when she believed a photo showing dozens of people clinging to rooftops during flooding in Thai Nguyen Province in the north was real. The grainy quality made the picture convincing at first glance.
“But on closer look, it made no sense as multiple helicopters were hovering just above the water yet not rescuing anyone,” she says
That experience made her more cautious. So when she saw the new flooding video, she examined it again and noticed the grandmother’s face was blurred and distorted, while nearby people appeared calm, chatting casually with water only reaching their knees.
“The footage was heart-breaking at first and gave me a strong urge to share it, but I realized in time that it was AI-generated just to attract views,” the 28-year-old in HCMC says.
In recent months, her social media feeds have been filled with photos of friends posing in destinations around the world, their faces retouched to look like models. But when she noticed that photos from various friends had identical settings, with only their faces changed, she realized the images were AI-generated.
In Hanoi, Hoang Viet, 27, has also been fooled by AI-generated content. A nature enthusiast, he once spent more than an hour watching a TikTok video about a supposed “rainbow mushroom” and even took notes for research. “Later I did more research and asked experts only to find out the species does not exist at all,” he says.
He recalls being frightened by clips of “sea monsters revived” or wild animals jumping on trampolines, all low-quality videos resembling security footage but drawing tens of millions of views. “All of them were fake.” After these experiences, he now cross-checks any information using reliable news sources or academic materials before accepting it as true.
The rise of tools such as OpenAI’s Sora, Google’s Veo 3 and Runway this year has caused a surge in AI-generated images and videos, from staged travel photos to recreated images with deceased relatives.
According to digital transformation expert Dr. Dinh Ngoc Son, AI-generated content is designed to exploit emotions and curiosity. “Sensational or unusual information always spreads faster,” he says. “As AI improves realism, the spread becomes stronger, creating an emotional whirlwind that is difficult to control.”
He says authenticity and digital ethics have become major challenges. As generative AI advances, the line between real and fake is becoming increasingly thin. He cites fabricated flood rescue clips and deepfake news anchors as examples.
In July Malaysian newspaper The Star reported that a couple in Kuala Lumpur drove 300 kilometers to a tourist destination only to find it did not exist and had been entirely produced by AI. “When users share such content without verification, it distorts public perception and undermines trustworthy information platforms,” Son says.
Cybersecurity specialist Ngo Minh Hieu, known as Hieu PC, says many people unknowingly expose personal data by uploading their photos to AI-powered editing apps. “With just a smartphone, anyone can create AI products,” the founder of the “Anti-Scam” project says. “While many use them for fun, scammers increasingly exploit them to deceive those who are less tech-savvy.”
At a national seminar on online fraud prevention in late October, Deputy Minister of Public Security Pham The Tung warned that criminals are taking advantage of AI and deepfake technologies to defraud citizens. On Oct. 28 anti-scam platform Chongluadao.vn issued a new alert about fraudsters using AI to manipulate e-commerce livestreams.
They take real sales videos, modify the sellers’ appearances to look physically disabled or ill, and re-upload them to solicit purchases from sympathizers. Scammers also create dozens of fake accounts to leave emotional comments, leveraging the bandwagon effect to deceive more viewers.
As someone who once bought products on livestreams of disabled people out of sympathy, Thu says the AI scam leaves her increasingly bewildered. “Now, when even images of those people can be faked, I do not know what to believe.”
To combat AI-driven misinformation, Son says joint action is needed from individuals, society and authorities. Individuals must improve their fact-checking skills, while the journalism and education industries should strengthen digital media literacy, he says.
Very clearly, AI has no soul and AI applications are being used for the wrong and irresponsible reasons. Not only are there tech users who use AI to make images or videos to grab people’s attention, there are criminals, fraudsters and scammers who use AI to steal money or information. This should remind you that technology can be abused a lot and affect people negatively.
An example of AI-generated imagery. (credit to VnExpress.net)
Let me end this piece by asking you readers: What is your reaction to this development? Are you able to tell if a video you saw is generated by AI? Do you think a lot of people are abusing AI to grab people’s attention and increase their social media followers? Is your local government unit using AI through public services? Do you know anyone who became a victim of scammers who used AI?
The 3rd quarter growth of only 4% the Philippines achieved has been on people’s minds a lot lately. As such, the country is at risk of falling behind its neighbors in Southeast Asia in terms of economic growth and gross domestic product (GDP) per capita, according to a BusinessWorld news report.
To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…
The Philippine economy is at risk of further falling behind its Southeast Asian neighbors, an economist said, noting it may take two years to catch up with Vietnam and up to 70 years to catch up with Singapore.
“(T)he Philippines could find itself lagging behind if alleged public spending issues continue to divert attention and resources away from the structural reforms needed to accelerate economic development,” Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said in a commentary on Wednesday.
In the third quarter, Philippine gross domestic product (GDP) grew by 4%, its slowest pace in over four years amid slower household and public infrastructure spending as the flood control scandal dampened investor and con-sumer sentiment.
In the nine months to September, GDP growth averaged 5%, putting the government’s 5.5%-6.5% full-year growth target further out of reach.
“The Philippine economy is growing, but not enough to close the economic gap with other countries,” Mr. Neri said.
He noted the Philippine GDP per capita is lower compared with other economies in the region. Citing International Monetary Fund (IMF) data, he said the Philippines’ GDP per capita stood at $4,078 in 2024.
“At the current growth rate, it would take the Philippines two years to catch up with the GDP per capita of Vietnam, 4 years with Indonesia, 14 years with Thailand, 26 years with Malaysia, and 70 years with Singapore, assuming their incomes remain stagnant. In reality, their GDP per capita continues to grow, which means the gap could persist or even widen,” Mr. Neri said.
The Philippines lagged behind Singapore which had a GDP per capita of $90,674 in 2024, followed by South Korea ($36,128), Japan ($32,498), China ($13,312), Malaysia ($12,540), Thailand ($7,491), Indonesia ($4,958) and Vietnam ($4,535).
“Before the pandemic, the Philippines had a higher GDP per capita than Vietnam, but has since been overtaken. At current trends, it would take the Philippines two years to catch up with Vietnam, but that gap could increase to 13 years by 2044,” Mr. Neri said.
The BPI economist said the Philippines needs structural reforms to accelerate growth in order to close the widening gap with its neighbors.
“The current economic model of the country is not enough, as shown by the country’s inability to grow faster than 6% in recent years,” he said.
Mr. Neri said the economy has been “too reliant” on consumer spending, driven by overseas Filipino worker (OFW) remittances and the business process outsourcing industry.
“There is a need to diversify its sources of growth. The economy must improve in terms of production, especially in agriculture and manufacturing, as they will allow the economy to be more self-sufficient and to reach foreign markets. These industries have been critical to Vietnam’s success and could play a similar role for the Philippines,” he said.
However, Mr. Neri said implementing these reforms will be hard if the government lacks focus.
“Public spending issues divert fiscal resources and policymaking focus away from long-term development priorities. Efforts to strengthen safeguards against potential issues in government spending are essential, enabling the country to work on structural reforms that could improve the economy,” he said.
Let me end this post by asking you readers: What is your reaction to this recent development? What do you think should the government do to accelerate economic growth?
Author Carlo Carrasco 