MAP Insights
Column in BUSINESSWORLDIndustrialization Begins in the University
by Sec. ALFREDO "Fred" E. PASCUAL - July 14, 2026The Philippines has long aspired to industrialize. We seek manufacturing revival, technology upgrading, export competitiveness, innovation, food security, energy transition, and better jobs. We want to move beyond a consumption-driven, service-heavy economy toward one that produces more, processes more of its own raw materials, develops more technology, and creates higher-value employment for Filipinos.
But one indispensable question is often treated as secondary: what kind of higher education system is needed to support such an economy?
Industrialization is not achieved by factories, incentives, infrastructure, and investment missions alone. It requires people and institutions capable of absorbing technology, improving processes, meeting standards, solving problems, and innovating. Universities must therefore do more than produce degree holders; they must help build the country’s productive capacity.
EDCOM II has performed an important public service by laying out the depth of the learning crisis, the fragmentation of education governance, and the need for stronger coordination across education and workforce institutions. But if EDCOM II has clarified the crisis, the next question is: what higher-education reform should look like if the Philippines is serious about not only fixing education but also building an industrial economy?
Lessons from ASEAN
For too long, many of our colleges and universities have been organized around supply rather than strategy. Programs are opened because they are popular, inexpensive, or easy to fill. Curricula are updated slowly. Internships, laboratories, industry linkages, and graduate-outcomes tracking remain uneven. Too many institutions offer similar programs without a clear connection to regional economic needs.
This is not simply an education problem. It is an industrial policy problem.
More progressive ASEAN countries have confronted this challenge more systematically. Singapore treats education, skills development, research, innovation, enterprise, and workforce transformation as parts of a coordinated national strategy. Thailand links higher education, science, research, and innovation to manpower development and priority industries. Malaysia strengthens industry relevance while preserving a commitment to holistic human development. Indonesia promotes flexible and experiential learning through industry-linked and community-based pathways.
The lesson is clear. Modern universities are neither ivory towers detached from national development nor mere training centers for immediate employment. They are knowledge institutions that must cultivate the mind, form character, develop skills, conduct research, support innovation, and serve society’s development needs.
General education for capability
For the Philippines, reform should begin with a more ambitious definition of the university’s role. The university must continue to nurture the life of the mind. It must defend academic freedom, critical inquiry, history, philosophy, literature, science, ethics, and the search for truth. But the cultivated mind must also be consequential. It must be capable of productive work, public reasoning, technological adaptation, ethical judgment, and national service. The issue is not liberal education versus industrial relevance. The goal is to make liberal education relevant to a country that must industrialize, innovate, and govern itself better.
This has direct implications for the debate on general education. CHED is right to ask whether college general education has become overloaded and repetitive. If senior high school is functioning as intended, college should not merely repeat what students should already have learned. There should be more room for deeper major courses, laboratories, internships, entrepreneurship, research, and work-integrated learning.
But general education should not be gutted. It should be redesigned. A modern Filipino graduate needs more than technical specialization. He or she must write clearly, reason logically, use data, evaluate evidence, collaborate with others, make ethical decisions, understand Philippine history, and act with civic responsibility.
Thus, a reformed general education program should be leaner yet stronger, with a protected core in communication; data, digital, and AI literacy; ethics and public reasoning; Philippine history, Rizal, the Constitution, and citizenship; culture and the arts; and community-based or work-linked problem solving. This is not a retreat from industrialization. It is a condition for industrialization.
Universities as innovation actors
Major programs must also become more rigorous and more closely aligned with actual sectors of the economy. Curricula should be reviewed against the country’s development priorities and co-designed with industry and professional bodies without compromising academic standards. Students should complete substantial internships, industry capstones, community enterprise projects, or applied research. Every program should answer a basic question: what real capability does this degree build for the country?
EDCOM II also reminds us that higher education cannot be reformed in isolation from the broader research and innovation ecosystem. Under-investment in R&D, weak research cultures, and limited linkages between academia and industry constrain our ability to translate knowledge into social and economic value. Universities must be understood not only as teaching institutions but also as strategic actors within a national innovation system.
Faculty reform must follow. We need strong regular faculty, as well as inter-disciplinary teaching teams, professors of practice, industry fellows, clinical faculty, entrepreneurship mentors, and community practitioners. Practitioners should not replace academics; they should complement them.
Different institutions, different missions
Not every college should pretend to be a comprehensive research university. The Philippines needs research universities, applied universities, regional development universities, teaching-focused colleges, polytechnic institutions, and community colleges. That differentiation should be tied to place: agriculture and food processing in farming regions, manufacturing and electronics in industrial corridors, fisheries and maritime industries in coastal areas, and digital services, finance, health technology, creative industries, and public governance in urban centers.
CHED’s role must also evolve. Regulation should protect quality, but it must not freeze curricula in time. Program standards should be updated more quickly. Strong institutions should be granted greater autonomy, while weak institutions should receive closer supervision and support. Funding should reward quality, mission alignment, graduate outcomes, research relevance, and industry collaboration, not merely enrollment size or political pressure.
A national compact
Higher education reform cannot be achieved by CHED alone. It requires a national compact among CHED, DepEd, TESDA, DTI, DOST, NEDA, DOLE, industry, professional bodies, local governments, SUCs, LUCs, and private HEIs. The country must identify priority industries, map required competencies, build laboratories, fund faculty development, expand internships, mobilize professors of practice, support applied research, and track whether graduates contribute to productive sectors.
The Philippines does not lack talent. What it lacks is a system that deliberately develops, deploys, and continuously upgrades that talent for national development. Higher education is part of the country’s productive infrastructure. Without capable people and knowledge institutions, physical infrastructure will not be enough.
The central question should no longer be: How many graduates do our universities produce? The better question is: What kind of country are these graduates prepared to build?
An industrial Philippines will require universities that cultivate the mind, discipline the intellect, form character, teach useful skills, connect with industry, serve the country’s regions, create knowledge, and help build the nation’s productive capacity. Industrialization will not be built by factories alone. It will be built by universities that understand their duty to national development.
[The author is former President of the Management Association of the Philippines (MAP). He served as Secretary of Trade and Industry, and President of University of the Philippines (UP) System. Feedback at <map@map.org.ph> and <aepascual@gmail.com>.]

