IT is high time we revisit the Filipino First policy.
Under former president Carlos Garcia, the Filipino First policy sought to give Filipino businesses and citizens a greater role in the national economy. At its core was a simple principle: Filipinos should have the opportunity to build, own and develop the industries that drive the country.
More than six decades later, the economic environment has changed considerably.
The Philippines is now part of a highly interconnected global economy. Foreign investments, multinational companies and international partnerships remain important sources of capital, technology, employment and market access. No serious economy today can grow by closing itself off from the rest of the world.
Reviving Filipino First, therefore, should not mean rejecting foreign participation. It should mean making the development of Filipino capability a deliberate economic priority.
The policy foundation already exists.
The 1987 Constitution provides for the preferential use of Filipino labor, domestic materials and locally produced goods. It also calls for the sustained development of Filipino scientists, entrepreneurs, professionals, managers, technical personnel and skilled workers.
The Tatak Pinoy Act similarly seeks to improve the productive capabilities of Philippine enterprises and enable them to produce more diverse, sophisticated and globally competitive goods and services. It recognizes the importance of human capital development, technology transfer and stronger participation by Filipino companies in local and global value chains.
Government procurement laws also provide preference for Philippine products and services under certain conditions.
The framework is already in place. The challenge is in how consistently it is applied.
In many projects, the instinct is still to look outside the country first.
When a government agency needs a particular technology, the search often begins with foreign providers. When an organization undertakes a major transformation project, it tends to bring in foreign consultants. When specialized expertise is required, the immediate assumption is that the capability does not exist locally. There will certainly be cases where this is true. But before arriving at that conclusion, we must ask whether we looked hard enough.
Government agencies and large organizations should conduct a serious assessment of local capability before sourcing expertise abroad. This should include not only large established suppliers, but also Filipino technology companies, SMEs (small and medium enterprises), MSMEs (micro, small and medium enterprise), startups, universities, research institutions, professional organizations and independent specialists.
Many Filipino companies have the necessary technical skills but lack visibility and access to larger projects.
Others are unable to meet procurement requirements because they do not yet have the financial capacity or project references of large foreign firms. This creates a cycle that is difficult to break. Local companies are told that they lack experience, but they are rarely given the opportunity to gain it.
We cannot expect Filipino companies to scale if we do not give them access to larger markets. The government is one of the biggest buyers in the economy. Its procurement decisions can help create industries, develop local expertise and strengthen domestic enterprises.
The same is true for large private sector organizations. When a Filipino company is given a significant project, the impact goes beyond the value of the contract. It can hire more people, invest in better systems, improve its processes, develop intellectual property and build the experience needed to pursue larger opportunities.
This is how capability is developed. This is especially important for MSMEs and SMEs.
Access to contracts, supply chains and long-term commercial opportunities will do more to strengthen a local enterprise than a succession of short-term programs.
A modern Filipino First policy should therefore include stronger pathways for local companies to participate in government projects and corporate supply chains. Procurement requirements should remain rigorous, but should not be designed in a way that automatically excludes capable Filipino firms.
At the same time, we must accept that some projects will require foreign expertise. Certain technologies may still be new to the country. Some specialized skills may not yet be widely available. Foreign companies may have experience from more developed markets that can benefit Philippine organizations.
There is nothing wrong with bringing in foreign talent or companies when they are genuinely needed. More so, it would be beneficial to have Filipino professionals involved and be given meaningful roles. Training should be structured and documented. Technical knowledge should be transferred throughout the engagement, not only through a seminar held at the end of the project.
This principle is already reflected in existing regulations requiring skills transfer and understudy arrangements in certain cases involving foreign workers. It is also consistent with the objectives of the Tatak Pinoy Act.
What is needed is more consistent application across government and large private sector projects. Knowledge transfer must also be measurable. A workshop is not automatically capability development. A certificate does not necessarily mean that expertise has been transferred. The true test is whether Filipino professionals and companies can eventually perform the work independently.
A modern Filipino First policy should focus on three areas. First, the government and large organizations should look for Filipino capability before sourcing it abroad. Second, local enterprises should be given greater access to projects, procurement opportunities and supply chains. Third, when foreign expertise is necessary, skills development and technology transfer should be required and measured.
This does not weaken the case for foreign investment. In fact, it strengthens it. The most valuable foreign investments are those that create jobs, develop industries, transfer knowledge and leave the country with stronger local capabilities.
Filipino First should also not be used to justify lower standards. Local companies must compete on quality, reliability, innovation and performance. They must invest in their people, technology, governance and systems. They must be prepared to meet the same standards expected of international companies.
The goal is not to protect Filipino businesses indefinitely but to help build companies that can compete regionally and globally. Perhaps this is how Filipino First should be understood today: before importing capability, we must first look for it locally; before bringing in foreign talent, we must determine whether Filipinos can be trained; and before awarding major projects entirely to foreign companies, we must ask how Filipino enterprises and professionals can meaningfully participate.
Foreign companies will continue to play an important role in the Philippine economy, but their presence should help expand, not replace, local capability. Every major engagement should leave the country with stronger Filipino companies, better-skilled workers and a more competitive domestic market. This is how we empower MSMEs and SMEs, develop Filipino talent more sustainably and give Filipino First renewed relevance as an economic strategy.
Kay Calpo Lugtu is the chief operating officer of Hungry Workhorse, a digital and culture transformation firm.
