The Philippines has secured up to AUD 45 million (around P1.881 billion) in grant funding from Australia to support reforms aimed at expanding formal employment, strengthening businesses and building a more resilient economy, according to the Department of Finance (DOF).

In a press release, the DOF said funding will support the Promoting Growth, Resilience, Economic Stability and Sustainability (PROGRESS) Program, Australia’s flagship initiative designed to help the Philippines achieve more inclusive and sustainable economic growth.

The agreement was formalized through a subsidiary arrangement signed by Finance Secretary Frederick D. Go and Australian Ambassador Marc Innes-Brown.

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

The program aims to address key structural constraints to growth, including slow formal job creation, income inequality, and barriers faced by women, persons with disabilities and other marginalized sectors, as well as the country’s vulnerability to global shocks and climate risks.

A central focus of PROGRESS is to support private sector expansion, particularly by improving the ease of doing business and enabling small and medium enterprises (SMEs) to invest in growth areas such as clean energy, climate mitigation and other high-impact industries.

The initiative will also strengthen institutional capacity and policy reforms in strategic sectors, including the energy transition and critical minerals development, to help position the country for long-term, sustainable growth.

Implementation will be carried out through an independent managing contractor, under the supervision of the DOF and Australia’s Department of Foreign Affairs and Trade (DFAT).

Key components of the program include technical assistance to government agencies, climate finance mechanisms to mobilize investments for SMEs, and a Strategic Activities Fund that will support research, innovation and policy development.

The DOF said it will coordinate closely with partner agencies, including the Anti-Red Tape Authority (ARTA), Department of Energy (DOE), Department of Trade and Industry (DTI), and Department of Economy, Planning, and Development (DEPDev), to ensure effective and results-driven implementation.