Manila: The Philippines must train more workers while its labor force remains large, Technical Education and Skills Development Authority (TESDA) Secretary Kiko Benitez told senators Tuesday, warning that the country risks losing its demographic advantage if it fails to expand access to technical-vocational education.
According to Philippines News Agency, during the Senate finance subcommittee hearing on TESDA's proposed 2027 budget, Benitez emphasized that the working-age population is expected to peak and decline sooner, making upskilling crucial as new technologies reshape the economy. "We need to make sure that we maximize and harness the demographic dividend as the Philippines is growing old before becoming rich," Benitez stated.
Benitez highlighted the necessity for TESDA to future-proof Filipino workers as artificial intelligence, new technologies, and innovative learning systems are expected to transform about 25 percent of jobs. Despite TESDA receiving its highest budget on record in 2026, with the country's education spending meeting the UNESCO benchmark of 4.4 percent of gross domestic product, Benitez noted that TESDA's share remained small, making up only about 2 percent of the education budget.
The country has approximately 74 to 75 million working-age Filipinos, yet TESDA's 2026 scholarship funds can support only about 650,000 beneficiaries. The technical-vocational education and training network has the capacity to absorb up to 1.5 million face-to-face trainees yearly through private and public training institutions. TESDA collaborates with 4,715 private technical-vocational institutions, 178 TESDA training institutions, and 271 public providers under local universities and colleges, state universities and colleges, and local government units.
Benitez mentioned that scholarship funds are being directed toward priority sectors under the National Technical Education and Skills Development Plan, including tourism, manufacturing, construction, information technology-business process management, and agriculture. TESDA is also enhancing AI-related training for BPO and digital workers, with 34,766 beneficiaries identified for institution-based AI and data courses and 10,000 BPO workers undergoing enterprise-based upskilling.
Since March 2025, TESDA has registered 880 micro-credential courses, including 133 on AI and digital skills. For 2027, TESDA initially proposed nearly PHP39 billion but received PHP20.9 billion under the National Expenditure Program, about 20 percent lower than its 2026 allocation and 46.8 percent below its proposal. "A higher budget is key to sustaining TESDA's momentum," Benitez asserted.
TESDA is seeking an additional PHP5.7 billion to support 162,656 more beneficiaries, expand higher-level qualifications, train senior high school Tech-Pro teachers, support barangay-based health and enterprise training, and host seven skills competitions under WorldSkills Asia 2027.
However, Senator Erwin Tulfo raised concerns about TESDA's fund utilization, citing budget research indicating a 68 percent obligation rate and a 45.2 percent disbursement rate in 2025. Tulfo suggested that the government's decision to cut the agency's proposed allocation might be due to its slow spending of funds. Benitez acknowledged the lower disbursement rates but explained that TESDA typically catches up towards the end of the year due to cash release timing and program rollout schedules.
Tulfo also pressed TESDA on Commission on Audit (COA) observations, including uncorrected accounting errors and omissions, scholarship deficiencies, and doubtful tuition repayments under the UAQTEA (Universal Access to Quality Tertiary Education Act) diploma program. COA representative Aldrin Cerrado noted that TESDA had submitted an Agency Action Plan and Status of Implementation, but validation of the agency's actions is still ongoing.
Cerrado recommended changes in the treatment of funds downloaded to provincial and district offices, pointing out that many of these offices lack accountants. Tulfo remarked that the Senate should carefully consider TESDA's budget adjustments if audit issues remain unresolved.
Benitez explained that TESDA scholarship packages include tuition, allowances, and insurance as they are designed for workforce development and are approved by the tripartite TESDA Board.
