The Philippine government recently introduced the Understudy Training Program (UTP) and Skills Development Program (SDP) through the amended Foreign Investment Act and Public Service Act to address the skills gap in the labor market and reduce long-term reliance on foreign labor. DOLE Department Order No. 248, series of 2025, further requires foreign nationals in specialized positions to train Filipino understudies in enterprises receiving fiscal incentives. However, its recent promulgation raises significant challenges in enterprise level implementation, regulatory monitoring, and program evaluation. Drawing on a mixed-methods approach, the paper highlights enterprise-level good practices across different industries, such as structured training programs, selection practices, and internal assessment mechanisms for technology or skills transfers. Comparative experiences from other countries further emphasize the importance of monitoring and evaluation processes and enterprise-level succession planning in sustaining long-term skills transfer. While challenges (e.g., limited monitoring and incoherent procedural systems across different regions) are evident, the findings suggest that UTP or SDP has strong potential to enhance the country’s human capital, provided that they are supported by robust institutional coordination mechanisms and aligned with strategic national development goals.
Keywords: Foreign labor policy, Technology/Skills transfer, Understudy Training Program
Principal Authors: Chelsea Nicole P. Pineda | Aldrine F. Anzures
Contributors: Levie Mariano Jr. | John Rod M. Sadia