Sweet spot pays dividends

The country’s demographic sweet spot is its dominant working population, which is attracting companies looking for a growing market and is expected to last until 2050.

Among the companies that have capitalized on the positive economic trend is Japan’s Mitsubishi Motors, which, sources said, is preparing a major offensive to capture the Philippine car market.

The situation started to move forward with a Mitsubishi alliance with Nissan, formed in 2016. Nissan sent executive Guillaume Cartier to work with Mitsubishi Motors, and a sweeping overhaul followed.

The automaker dissolved its 46-year-old joint venture with Sojitz, a lesser-known Japanese sogo sosha (trading house). Mitsubishi’s local sales network was expanded to include some dealerships that handled other brands. There are now 80 dealerships in the country selling Mitsubishi vehicles.

Mitsubishi Motors then launched specialized vehicles for the Southeast Asian market, like the Xpander minivan and the Xforce SUV. It also worked to strengthen its relationship with its Philippine dealers. During the pandemic, when sales were sluggish, it lowered quotas for sales staff and boosted commissions, helping employees maintain their lifestyles.

In 2022, the heads of the 26 dealerships that sold Mitsubishi vehicles, along with their families, were brought to Japan to familiarize them with the new models. Meetings were arranged with corporate leadership to show them the importance the company placed on the Philippines and encourage them to reinvest their profits in new dealerships.

Next year, the sources indicated, Mitsubishi Motors will open an auto financing company in partnership with a financial giant.

Having its own financing arm would entail taking on a certain amount of risk but would allow Mitsubishi to support its auto sales when local lenders tighten credit.

Demographic changes tilt the balance toward the Philippines as a key expansion market in the region.

Thailand faces a drop in its working population, while the Philippines is still on the rise, with its dominant working population projected to persist until the 2050s.

Where PPP works best

Aboitiz Foundation president Ginggay Hontiveros-Malvar takes great pride in the foundation’s tie-up with the Department of Education (DepEd) on learning initiatives like AuroraPH and Aboitiz Future Leaders.

Education Secretary Sonny Angara commended the foundation for its continued dedication to improving Philippine education.

“Aboitiz Foundation has demonstrated unwavering dedication to providing quality education for the Filipino youth, particularly in underserved and remote communities,” Angara said.

Angara said public-private partnerships (PPP), a concept that has bloomed under the administration of President Ferdinand Marcos Jr., have accelerated the impact on learners and teachers.

By working together, big business and government can create enduring solutions that ensure a brighter future for Filipino children.

The AuroraPH program has exceeded its 2024 goal by energizing and connecting 11 last-mile schools to the internet through solar power, surpassing the original target of 10 schools. The solar panels provide a sustainable solution to energy and connectivity issues in remote areas.

In 2025, the foundation plans to expand AuroraPH and reach 100 more schools nationwide, helping even more students access quality education.

The Aboitiz Future Leaders program, meanwhile, continues to empower the youth and currently supports 50 college scholars in various universities across the country.

For 2025, the program aims to onboard 100 more scholars, giving them access to education and brighter career opportunities.

“Our partnership with DepEd drives us to create transformative programs that open pathways for Filipino youth,” Hontiveros-Malvar said. “Through AuroraPH and Aboitiz Future Leaders, we’re turning challenges into opportunities for success.”

The Aboitiz Foundation’s multi-pronged approach to nation-building reflects its mission to create a better and more sustainable Philippines. By supporting education, fostering job creation, and championing climate action, the foundation aligns with national development goals and inspires collaboration across sectors.

“Programs like AuroraPH and Aboitiz Future Leaders show how partnerships can drive inclusive growth and sustainable development,” Hontiveros-Malvar said. “We thank the Department of Education for its invaluable guidance and support.”