Think tank: PH seafaring industry spurs over P1T boost to economy

Think tank: PH seafaring industry spurs over P1T boost to economy
Philippine News Agency Nov 12, 2025 https://www.sunstar.com.ph/cebu/think-tank-ph-seafaring-industry-spurs-o...

THE Philippine seafaring industry remains a vital lifeline for the national economy, generating over P1.06 trillion in total output and supporting nearly 400,000 jobs in 2024, based on a study by the Center for Research and Communication (CRC).

At a press briefing Tuesday, Nov. 11, 2025, CRC president Winston Conrad Padojinog said the combined spending of shipowners in the Philippines and the remittances of Filipino seafarers serve as an anchor for the country’s economic growth amid global uncertainties.

“Over the last five years, since 2021, this sector, the sea-based sector, has contributed almost P1.5 trillion in economic output to the Philippine economy. That represents about P377 billion every year that is injected into the economy and it constitutes about 20 percent of our total overseas remittances, and it’s about 1.6 percent of our GDP (gross domestic product). But we are just looking at direct impact,” Padojinog said.

He added that in reality, the industry is quietly contributing even more than the said amount.

He said seafarers’ remittances to their families, and spent by the households that are beneficiaries of the remittances, go into different sectors of the economy.

Aside from food, which takes the largest percentage of the budget, funds also go to their housing needs, transportation, like motorcycles and cars, and education, among others.

Padojinog said “industry multipliers” are also factored in, meaning “for every peso that they spend, it generates more than a peso after it goes through the different industries.”

He said estimates indicate that for every P1 that the household spends on the economy, it generates at least PP3.2 for the rest of the Philippine economy.

“For every peso that you spend, for example, in food consumed at home, where the goods are bought directly from the agricultural and fishery sectors, it contributes P3 more. So, if we combine everything, our estimates indicate that for every one peso that is spent by an average household, it generates at least P3 more. That explains why for P287 billion, it can bring about at least P800 or P900 billion more,” he said.

Meanwhile, he said that every time a Filipino seafarer gets deployed, the family immediately moves up the income class.

He said when a seafarer sends money home and when shipowners spend locally before deployment, it’s not just the family who benefits but the whole community.

“From a low-income class of P300,000 every year for a family of five, it will now be at least P800,000 every year. That’s the best way by which many Filipinos, among other sectors, to be eliminated from poverty, which, at the moment, stands at about 11 percent of our total households,” he said.

Trillion-peso impact

The CRC study found that in 2024, foreign shipowners spent about P54.3 billion in the Philippines for training, accommodation and pre-deployment requirements.

Meanwhile, Filipino seafarers remitted P277.4 billion to their families back home.

Padojinog said these combined activities created P331.7 billion in direct economic impact and P1.06 trillion in total output, equivalent to four percent of the country’s GDP.

He added that the industry also generated P150.1 billion in household income and 398,839 jobs, or about 0.8 percent of the national employment.

He said shipowners’ spending alone supported 116,155 jobs and P43.7 billion in household income.

Industry challenges

Padojinog, however, cautioned that regulatory uncertainty, uneven enforcement and legal ambiguity threaten the stability of this high-performing industry.

“When confidence is damaged, shipowners don’t negotiate. They quietly move contracts to other countries,” he warned.

He emphasized the importance of preserving global confidence in Filipino seafarers as other nations such as India, Indonesia and China ramp up their training and deployment programs.

Meanwhile, he added that challenges faced by Filipino seafarers while on board, including mental health stability, must be addressed.

He said the government and other stakeholders should work together and invest in training and skills upgrading.

Meanwhile, he said the government must ensure that the policy environment allows for long-term planning to allow for partnerships to flourish, ensure that contracts are followed and their welfare and rights are protected.

“What makes the Philippines competitive is that we have a mature industry chain and, of course, the critical thing is the ship owners who continue to believe in our Filipino talents. But again, we have to make sure that not only does our Filipino talent remain competitive, but also that the industries that service them to make them competitive and attractive should be protected,” Padojinog said.

“If we are not careful, we may lose our competitive edge.” / PNA