The Philippine government is pushing companies to take a central role in workforce development as a new law enables businesses to register and run their own training programs with state backing. During a panel on artificial intelligence, innovation, and the future of work at Cebu Business Month 2026, Technical Education and Skills Development Authority (Tesda) Deputy Director General for Administration and Innovation Galo Glino III highlighted Republic Act 12063, or the Enterprise-Based Education and Training (Ebet) Framework Act, as a key tool to close persistent skills gaps and prepare workers for rapid technological shifts.
Enterprise-Led Training
“We want enterprises and corporations to be active players and actors, and to be providers and deliverers of training that are relevant to their operations,” Glino said. Signed into law in November 2024, the Ebet Act institutionalizes enterprise-based education and training programs, allowing companies to design and register courses tailored to their workforce needs. Tesda provides support through training assistance, scholarships, and streamlined registration processes. The implementing rules and regulations were finalized in February 2025.
Glino stressed that traditional training methods are no longer adequate given the pace of change in the labor market. “The world of work is changing. We cannot do business as usual. We cannot do more of the same,” he said. The initiative comes as industries grapple with the growing adoption of AI and other emerging technologies, intensifying the need for reskilling.
Addressing Skills Gaps
Tesda is promoting enterprise-based learning alongside micro-credential programs—short-term, stackable courses that help workers acquire specific skills quickly. The agency has partnered with educational institutions, startups, and private companies to expand AI-related and digital skills training nationwide. Glino noted that enterprises are often best positioned to identify industry-specific competencies and respond faster to changing business needs.
By allowing companies to directly participate in workforce development, the government aims to narrow the gap between training programs and actual labor market demands. This move also targets longstanding job-skills mismatches, where employers struggle to fill vacancies despite many job seekers. “Job-skills mismatch is very real,” Glino acknowledged during the discussion.
AI Upskilling Roadmap
Tesda is collaborating with the Department of Education, the Commission on Higher Education, and industry groups to align training programs with workforce requirements under the government’s broader AI upskilling roadmap. The agency initially launched AI-related training programs with capacity for about 18,000 learners this year and is now expanding through partnerships with schools, startups, and businesses. Beyond classroom instruction, Tesda is exploring educational technologies like virtual reality and augmented reality to improve training delivery and accessibility.
Skills Passport Platform
Glino also announced Tesda’s development of a digital platform called the Skills Passport, which will provide workers, students, and employers with access to information on training programs, career pathways, and skills requirements. For businesses, the platform will serve as a gateway to register enterprise-based training programs and connect with government support mechanisms. As automation and AI reshape industries, Tesda believes closer collaboration between government and employers is essential to keep workers competitive and employable. “The training that enterprises provide is often the most relevant because it is directly linked to the skills needed in their operations,” Glino said. “That is why we want businesses to become active partners in developing the workforce of the future.”
