Tetangco urges new grads to ‘seize opportunities, take risks’

MANILA, Philippines - Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. has challenged new college graduates to “seize opportunities and take risks” as the Philippines enters a demographic sweet spot.

“We are entering a demographic window historically proven to be the most prosperous years of a country, where millennials comprise a significant consumer segment in the economy. As part of the country’s large, young and highly literate population, you will give us the edge in seizing the opportunities economic development will bring,” Tetangco said in his address during the 40th Commencement Exercises of the Metrobank Group’s Manila Tytana Colleges.

Tetangco said the youth, who are expected to account for a large portion of the country’s workforce, would play a key role in driving growth and economic development.

The median age of the population in the country is 24 compared with 47 in Japan and 38 in the US.

Latest data released by the government also showed the national unemployment rate continued to drop to 5.8 percent in January from 6.6 percent a year ago.

Tetangco said the Philippines entered 2016 from a position of strength as the country’s gross domestic product (GDP) growth accelerated to 6.3 percent in the fourth quarter of 2015 from the revised 6.1 percent in the third quarter.

This brought the number of consecutive quarters of positive economic growth to 68. The country’s GDP expansion, however, slowed down to 5.8 percent last year from 6.1 percent in 2014 due to weak global growth and lack of government spending.

“Compare this to 1997/98, when at the height of the Asian financial crisis, the economy was contracting, companies were shutting down, and many were being laid off. Today, as new businesses open and expand, there is demand for well-educated talents like you,” Tetangco said.

He said the Philippines continues to face challenges and uncertainties.

For one, he explained the BSP always deals with uncertainties arising from the normalization of interest rates in the US, the economic slowdown in China, the softening oil prices in the world market, among others.

“Even in our current economic sweet spot, we still need to be proactive and mindful of risks. We embrace uncertainty as a given and commit to the fundamentals of hard work and proactive reform. The same should hold true for each of you as you face your future,” Tetangco said.

The Cabinet-level Development Budget Coordination Committee (DBCC) sees the country’s GDP expanding between 6.8 and 7.8 percent this year.

“As Titans, you must seize opportunities and take risks. Again, you are entering the labor market at a time the economy is something your parents or graduates 15 years ago can only be envious about. We need your restlessness, energy, your adeptness to information technology and your creativity to spur innovation and positive disruption,” he told the 183 graduating students.

For his part, Manila Tytana Colleges president and chief academic officer Sergio Cao thanked corporate partners in training fit for job professionals through the academe-industry partnership framework.

“Our corporate partners, their provision of the on the job training experiences, scholarship grants, and many other collaborative initiatives help ensure the smooth transition from the school to the workplace,” Cao said.

Partners include Metrobank, Metrobank Card, First Metro Investments Corp., Philippine Savings Bank, Toyota Financial Services, Federal Land, among others.